Dodla Dairy Q4 FY26: Revenue ₹1,074 Cr, Margins Slip

What the latest results show

Dodla Dairy reported record revenue in both the March quarter and the full financial year, even as profitability metrics reflected pressure from procurement costs. For Q4 FY26, revenue from operations rose to ₹1,074.47 crore, the company’s highest-ever quarterly revenue, with year-on-year growth of 18.12%. Full-year FY26 consolidated revenue rose 10.9% year-on-year to ₹4,125.2 crore despite what the company described as industry-wide milk supply constraints, procurement cost inflation, and erratic rainfall affecting demand for value-added products.

The quarter also highlighted the gap between volume-driven topline growth and margin outcomes. Operating profit for Q4 FY26 was reported at ₹34.99 crore, down 46.48% year-on-year, with operating margin at 3.26%. Profit after tax (PAT) for the quarter was ₹69.73 crore, up 2.59% year-on-year.

Key Q4 FY26 numbers at a glance

The company said Q4 FY26 revenue growth was primarily driven by higher volumes. Management also indicated that the business crossed ₹1,000 crore of revenue in each quarter of FY26. In the quarter ended 31 March 2026, consolidated net profit was ₹69.8 crore on revenue from operations of ₹1,074.5 crore.

On operating profitability, the disclosures show a decline in EBITDA versus the prior year quarter. EBITDA for Q4 FY26 was ₹53.8 crore versus ₹83.5 crore in Q4 FY25, with EBITDA margin at 5.0% compared with 9.2% in the prior-year quarter.

FY26 performance: record revenue, margin pressure

For FY26, Dodla Dairy reported net profit of ₹267.0 crore, up 2.7% year-on-year, supported by revenue growth to ₹4,125.2 crore. The company described FY26 as a record year for consolidated revenue, with growth led by volumes, while margins remained under pressure due to elevated procurement costs.

The company reported an EBITDA margin of 7.5% for FY26 and a PAT margin of 6.5%. It also flagged operating challenges during the year, including milk supply constraints and cost inflation. These headwinds were amplified by erratic rainfall, which the company said impacted demand for value-added products.

Volume and procurement trends

Dodla Dairy reported stronger milk availability and higher sales volumes in FY26. Milk procurement volume rose 13.4% year-on-year to 18.5 lakh litres per day (LLPD). Milk sales volume reached a record 14.0 LLPD, up 19.5% year-on-year.

The company also indicated it sustained consistent procurement levels at 18.5 lakh litres daily. In the March quarter, management discussed a reduction in average procurement cost to ₹31 per litre, compared with ₹38.7 per litre in the previous quarter and ₹37.4 per litre in Q4 FY25.

Africa and Orgafeed add diversification

The Africa business division recorded a sharp jump in performance during the quarter, with revenue up 48% year-on-year in Q4 FY26. One disclosure also cited Africa business revenue at ₹151 crore and EBITDA at ₹18 crore for the period referenced. The company attributed the Africa growth to a 60% rise in liquid milk sales.

Dodla Dairy also highlighted the contribution of the Orgafeed business, with revenue growth of 23.2%. The company said Africa and Orgafeed provided diversification and support during a year marked by supply and cost volatility in the domestic milk market.

Profitability details and exceptional items

While revenue scaled up, the quarter showed compression in operating profitability. Along with the operating profit decline, the company reported profit before exceptional items and tax of ₹50.95 crore in Q4 FY26 versus ₹90.29 crore in Q4 FY25. It also recorded an exceptional item of ₹3.21 crore in Q4 FY26.

Despite the EBITDA decline disclosed for the quarter, PAT for Q4 FY26 was slightly higher year-on-year at ₹69.73 crore. The reported PAT margin for the quarter was cited at 6.5%.

Acquisition update: Osam Dairy consolidated

Dodla Dairy completed the acquisition of Osam Dairy in August 2025. The acquired business is now consolidated in the group results. The company said the acquisition expands its presence in Eastern India.

This consolidation is an important context point for interpreting year-on-year comparisons, particularly for topline growth and regional mix. The company did not provide additional integration timelines in the provided disclosures.

Expansion plans: Maharashtra initiative and Uganda greenfield

Alongside results, the company outlined a strategic growth plan. The plan includes a new initiative in Maharashtra and a greenfield project in Uganda, aimed at long-term expansion.

The Uganda project also aligns with the company’s comments on the growing role of Africa in diversification. The company has not provided capex numbers, commissioning dates, or capacity figures in the provided information.

Results timeline and disclosure context

Dodla Dairy’s Q4 FY26 results were declared on 16 May 2026 at a board of directors meeting. The reported quarter covered the period ended 31 March 2026.

The company repeatedly emphasized that it delivered its highest-ever quarterly and annual revenue in FY26. It also highlighted that volume expansion was the primary driver of the Q4 FY26 revenue increase.

Market impact: what investors can take away

From a market perspective, the key takeaway in the disclosures is the contrast between revenue momentum and margin sensitivity. Q4 FY26 revenue rose 18.12% year-on-year to ₹1,074.47 crore, but operating profit fell 46.48% and operating margin was reported at 3.26%. EBITDA and EBITDA margin also declined versus the prior year quarter based on the disclosed figures.

The company’s commentary links this pressure to elevated procurement costs and broader supply constraints. At the same time, management’s data on procurement volumes, record milk sales volumes, and Africa growth points to continued traction on the volume side.

Summary table: quarterly and annual snapshot

Conclusion

Dodla Dairy ended FY26 with record revenue of ₹4,125.2 crore and a highest-ever quarterly revenue of ₹1,074.47 crore in Q4, supported by higher volumes and growth in Africa and Orgafeed. The same quarter also showed profitability pressure, with operating profit and operating margin declining sharply year-on-year. Next cues will come from updates on the Maharashtra initiative, the Uganda greenfield project, and how procurement costs track versus pricing in coming quarters.