Dodla Dairy Q1 FY27: Revenue Hits Record ₹1,198 Cr, VAP Sales Surge 17.6%
Dodla Dairy reported record Q1 FY27 revenue of ₹1,198 Cr, up 19% YoY. VAP sales grew 17.6% to ₹415 Cr, and Africa business revenue surged 45.6% to ₹154 Cr. The company invested ₹11.65 Cr for a 2% stake in Sids Farm. Management expects EBITDA margins to recover to 7-8% and targets 15% revenue growth for FY27.
The announcement details record financial performance, strategic investments, and positive future outlook, which are significant developments for the company and its stakeholders.
The company reported record revenues and strong growth in value-added products and international operations, along with a strategic investment in a premium dairy brand. Despite near-term margin pressures, the outlook for recovery and future growth is positive.
Dodla Dairy Limited announced its Q1 FY27 results, achieving its highest-ever quarterly revenue of ₹1,198 crores, a 19% year-on-year increase. Milk procurement also reached a record of approximately 21.1 lakh liters per day. EBITDA for the quarter was ₹65 crores with a 5.4% margin, and Profit After Tax (PAT) stood at ₹41 crores.
The company experienced pressure on profitability due to elevated procurement prices, which were not fully passed on to consumers. However, they anticipate passing on these costs in the coming quarters, with a gradual recovery expected from Q2 onwards. Procurement in Maharashtra and Karnataka saw improvements, with continued efforts to expand the farmer network.
Value-added products (VAP) sales reached a record ₹415 crores, a 17.6% year-on-year growth, driven by strong demand for curd, buttermilk, and flavored milk, particularly during the prolonged summer season. Excluding bulk sales, VAP delivered a 40.6% year-on-year growth. The Africa business also reported a record revenue of ₹154 crores, a 45.6% year-on-year increase, with EBITDA at ₹24 crores, up 74% year-on-year.
Expansion initiatives include the Maharashtra Greenfield project progressing as planned. The company is evaluating the optimal utilization of its Chandel plant for Eastern India expansion. Dodla Dairy also announced a primary investment of ₹11.65 crores for a 2% stake in Sids Farm Private Limited, a premium dairy brand with a direct-to-consumer presence.
The company expects to maintain EBITDA margins between 7% and 8% for the current year and is confident in sustaining similar profit margins over the next 2-3 years, viewing current margin pressures as seasonal corrections rather than structural resets. The company plans to gradually pass on price increases to consumers, with an anticipated incremental price hike of around 2-2.5% in the ongoing quarter, bringing the total for the year to 4-5%. Volume growth is projected at 8-10% for India, with overall revenue growth targeted at 15%.
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