The total income of the company rose to Rs 1,023.78 crore in the first quarter of the current financial year (Q1FY26)
Dodla Dairy reported a 3.3 per cent year-on-year decline in consolidated net profit in the first quarter of the current financial year (Q1FY26). The company posted a net profit of Rs 62.87 crore in Q1FY26, compared to Rs 65.02 crore in the same period last year.
Despite the fall in profit, total income rose to Rs 1,023.78 crore, registering an increase of over 11 per cent from Rs 918.53 crore in the corresponding quarter of the previous fiscal. The growth in revenue reflects continued demand momentum across Dodla Dairy’s core markets.
“Several factors influenced our performance during this period. Our Indian operations were impacted due to a shorter summer, resulting in lower sales from summer-related VAP products like curd, lassi, ice cream, On the African side, while the business increased in revenue terms, our margins fell due to the focus on capturing higher market share in Kenya with the operations of the new plant in that region,” stated Dodla Sunil Reddy, Managing Director, Dodla Dairy
The Hyderabad-based dairy firm, which primarily operates in South India, did not disclose the specific reasons behind the decline in net profit. However, factors such as higher input costs and operating expenses may have weighed on the bottom line, even as topline performance remained strong.
Value Added Products sales grew by 12 per cent with a sale of Rs 351.6 crore (36.2 per cent of revenues) as against Rs 313.9 crore (35.4 per cent of revenue). The company said that in the declining price environment, inventory was liquidated to maintain balance sheet prudence.
High-margin summer-related items like curd, lassi, ice cream, and others had a lower contribution compared to the past year due to early rains. Procurement prices grew faster as compared to the realisation prices, resulting in gross margin compression
