Dodla Dairy's Q2 net profit falls 44% as milk procurement costs climb

what happened

Dairy processor Dodla Dairy posted a net profit of ₹36.59 crore for the quarter ended September 30, 2026, against ₹65.67 crore a year earlier, a fall of 44.3%, according to Moody's. Revenue from operations climbed 17.4% to ₹1,196.02 crore from ₹1,018.82 crore. The company cautioned that year-on-year comparisons are distorted by its acquisition of HR Food Processing Private Ltd, effective August 1, 2025.

Rising raw material costs did most of the damage. The milk procurement price jumped 15.7% year on year to ₹43.2 a litre, while the realisation price rose only 8% to ₹61.9 a litre. Packaging costs surged 41.6%, and per-litre overheads grew on inflation, the new labour code and geopolitical tensions. Dodla raised milk prices by ₹2.5 a litre during the quarter, but Managing Director Dodla Sunil Reddy said only part of that benefit showed up in the second quarter.

The board also approved a joint venture in India with Meadow India Holdings Ltd (MIHL) to sell dairy ingredients to businesses. Dodla will hold 40% and MIHL 60%. The deal still needs a signed joint venture agreement and regulatory approvals. In early trading on BSE, the stock was down 1.11% at ₹983.40.

why it matters

For investors the picture is mixed: revenue is growing faster than ever, yet higher input and packaging costs are eating into profit. The company also said festive demand moved from last year's second quarter into the third quarter, so the full picture will be clearer in the second half. Its Africa business, which operates in Kenya and Uganda, grew revenue by 55.9%.

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