Dodla Dairy's Q2 Profit Rises 3.6% to ₹65.6 Cr, Revenue Edges Up 2% Amid EBITDA Decline

Consumer Products

Updated on 03 Nov 2025, 07:51 am

Reviewed By

Aditi Singh | Whalesbook News Team

Short Description :

Dodla Dairy Limited reported a 3.6% year-on-year increase in net profit to ₹65.6 crore for the July-September quarter, with revenue from operations growing 2% to ₹1,019 crore. However, the company saw a 3.5% dip in EBITDA to ₹92.7 crore and a slight decrease in EBITDA margin to 9.1%. The Managing Director cited the inclusion of the recently acquired OSAM Dairy business, which operates at lower margins, and a shift in product mix towards liquid milk and value-added products as reasons for the performance. The company expects sustained growth aided by GST benefits and festive demand.

Dodla Dairy's Q2 Profit Rises 3.6% to ₹65.6 Cr, Revenue Edges Up 2% Amid EBITDA Decline

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Stocks Mentioned :

Dodla Dairy Limited

Detailed Coverage :

Dodla Dairy Limited announced its financial results for the second quarter ending September 30, 2023. The company's net profit saw a modest increase of 3.6%, reaching ₹65.6 crore compared to ₹63.3 crore in the same quarter last year. Revenue from operations also grew by 2% to ₹1,019 crore, up from ₹997.6 crore year-on-year.

Despite revenue and profit growth, the operating performance indicated some pressure, with Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) falling by 3.5% to ₹92.7 crore from ₹96 crore in the corresponding period of the previous year. Consequently, the EBITDA margin declined to 9.1% from 9.6% a year ago.

Dodla Sunil Reddy, Managing Director of Dodla Dairy, explained that the quarter's performance included two months of contribution from the recently acquired OSAM Dairy business, which is currently operating at lower margins. He also highlighted a significant change in Dodla's product mix, with a decline in bulk sales and growth driven by liquid milk and higher-margin value-added products such as curd, ghee, lassi, flavoured milk, and ice cream. This shift, he noted, resulted in moderate revenue growth but a strong improvement in gross profit.

Looking forward, the Managing Director expressed optimism, stating that with the benefits of GST and strong festive demand, Dodla Dairy is well-positioned to maintain consistent growth and increase the proportion of value-added products in its portfolio.

Impact: This news has a moderate impact on Dodla Dairy Limited's stock performance, potentially influencing investor sentiment regarding its operational efficiency and profitability, especially given the EBITDA decline. The company's strategic shift towards value-added products could be a key driver for future growth. The impact on the broader Indian stock market is limited but relevant for investors in the fast-moving consumer goods (FMCG) and dairy sectors. Rating: 5

Difficult Terms: EBITDA: Earning Before Interest, Taxes, Depreciation, and Amortization. This metric represents a company's operating performance by excluding non-operating expenses like interest, taxes, depreciation, and amortization. EBITDA Margin: Calculated by dividing EBITDA by total revenue, it indicates how efficiently a company is converting its revenue into operating profit. GST: Goods and Services Tax. A comprehensive indirect tax levied on the supply of goods and services in India. Value-added products: Products that have been enhanced or modified from their raw form to increase their appeal and value to consumers, such as flavored milk or packaged curd.