Why Did Dodla Dairy’s Q1 Profit Fall by 3.4% to Rs 62.8 Crore?
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Synopsis
Dodla Dairy's Q1 FY26 results reveal a sharp decline in net profit, raising concerns about operational performance despite a revenue increase. The company faces challenges with narrowing margins and increased costs. Explore how these factors may affect the dairy giant's future prospects.
Key Takeaways
- Net profit decreased by 3.4% to Rs 62.8 crore.
- Revenue increased by 10% to Rs 1,007 crore.
- EBITDA fell by 22% to Rs 83 crore.
- Margins contracted to 8.2% from 11.5%.
- Company shares declined nearly 8% post-results.
Mumbai, July 21 (NationPress) Dodla Dairy, a company based in Hyderabad, disclosed a 3.4% decline in net profit for the June quarter (Q1 FY26), reporting Rs 62.8 crore compared to Rs 65 crore in the corresponding quarter of the previous fiscal year (Q1 FY25).
Furthermore, the company’s profit before tax (PBT) was reported at Rs 80.98 crore, a decrease from Rs 92.80 crore during the same period last year, as per its filing to the stock exchange.
On a brighter note, revenue rose by 10% year-on-year to reach Rs 1,007 crore, fueled by increased sales.
Incorporating other income of Rs 0.99 crore, the total comprehensive income for the quarter amounted to Rs 63.87 crore, as stated in the company’s filing.
However, operational performance showed signs of weakness. The company’s EBITDA plummeted by 22% to Rs 83 crore.
Moreover, margins significantly contracted to 8.2%, down from 11.5% in the previous year, indicating a drop of over 300 basis points.
Dodla Dairy incurred various expenses this quarter, including Rs 710.61 crore in raw material costs, Rs 36.72 crore for inventory changes, Rs 47.14 crore in employee benefits, Rs 0.69 crore in finance costs, and Rs 17.77 crore for depreciation and amortization.
Other expenses were reported at Rs 129.88 crore, according to their regulatory filing.
Following the announcement of these results, Dodla Dairy's shares fell by nearly 8% during intra-day trading.
By the end of trading, the stock was priced at Rs 1,338.40, reflecting a 7.68% decline, based on official data.
Despite today’s setback, the stock has appreciated by 6.72% year-to-date.
Additionally, the Board of Directors appointed Rajani Kumar KVVS as Senior Management Personnel (SMP) and Head of Production & Maintenance, effective July 21.
Point of View
It is crucial to understand the implications of Dodla Dairy's financial results. The decline in net profit and operational performance highlights potential challenges that could affect investor confidence. While revenue growth is promising, the narrowing margins may indicate underlying issues that need to be addressed to stabilize the company's future.
NationPress
21/07/2025
Frequently Asked Questions
What caused Dodla Dairy's profit decline in Q1 FY26?
The profit decline was attributed to increased operational costs and narrowing margins, despite a revenue increase.
What was Dodla Dairy's total revenue for Q1 FY26?
Dodla Dairy reported total revenue of Rs 1,007 crore for Q1 FY26, showing a 10% year-on-year growth.
How did the company's EBITDA change in Q1 FY26?
The company's EBITDA fell by 22% to Rs 83 crore, indicating challenges in operational performance.
What were the share market reactions to Dodla Dairy's earnings announcement?
Following the announcement, Dodla Dairy's shares dropped nearly 8% during intra-day trading.
Who was appointed as Senior Management Personnel at Dodla Dairy?
Rajani Kumar KVVS was appointed as Senior Management Personnel and Head of Production & Maintenance.
