Dodla Dairy trims FY26 revenue target, expects 10-12% growth

Hyderabad-based Dodla Dairy has lowered its full-year revenue growth guidance to 10–12% from 15% estimated earlier. Managing Director Dodla Sunil Reddy said quarter one dragged down the first-half performance due to weak summer demand and early monsoons, which hit sales of value-added products like dahi and lassi. However, he expects the second half to be more supportive.

While the final outcome will depend on February–March performance and the summer season, but the company is confident of crossing 10% growth. This comes after a period of muted top-line growth in the first half of the fiscal year.

In the July–September quarter (Q2FY26), Dodla Dairy reported revenue of ₹1,019 crore, a margin of 9.10%, and a profit of ₹65.60 crore.

Reddy said the margin improvement in quarter two is sustainable. He expects margins to remain in the 8–9% range, supported by stable procurement trends.

The flush season — when milk availability rises — has not yet fully played out due to erratic weather, but the company expects supply conditions to normalise.

The contribution of value-added products (VAP) to the sales mix saw a decline from 37% in H1 last year to 33% in H1 this year. Reddy clarified this was not due to a drop in consumer VAP sales but rather a reduction in the bulk sale of inventory like milk powder and butter.

On the acquisition of Osam Dairy, a dairy company in Eastern India, Reddy said the 10% organic growth guidance excludes the new unit.

Osam is expected to add around ₹100 crore in revenue this year, as it will be consolidated for only eight months. Dodla Dairy’s revenue is expected to cross ₹4,000 crore in FY26, making Osam’s contribution relatively small.

The Orgafeed (animal feed) division reported ₹83 crore in H1FY26 revenue and ₹12–13 crore in EBITDA. Reddy expects this vertical to grow 25–30% this year, with margins remaining stable. Capacity utilisation has reached about 60% within 18 months of expansion.

Kenya and Uganda contributes around 11% to Dodla Dairy’s revenue. Reddy said volumes in Kenya have grown significantly as the company expands its market share. Margins in Kenya are slightly higher than India, but the focus remains on scaling up volumes.

Dodla Dairy’s new Maharashtra facility is expected to begin commercial production by March 2027. Reddy said the state is being prioritised mainly for procurement due to high milk availability, even as competition from southern and northern players increases.



Dodla Dairy’s current market capitalisation is ₹7,209 crore. The stock is currently trading at ₹1,196 as of 9:35 am on the NSE and has remained flat over the last year.

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