Dodla Dairy has revised its full-year revenue growth guidance for FY26 to 10–12%, down from the earlier estimate of 15%. Managing Director Dodla Sunil Reddy said that the company’s first-half performance was affected by weak summer demand and early monsoons, which hit sales of value-added products such as dahi and lassi. He expects the second half of the year to be more supportive.
Reddy noted that the final full-year growth figure will depend heavily on performance during February–March and the upcoming summer season but maintained confidence that the company will cross 10% revenue growth. Dodla Dairy saw muted top-line expansion in the first half of FY26.
For the July–September quarter (Q2FY26), the company reported revenue of ₹1,019 crore, a margin of 9.10%, and a profit of ₹65.60 crore. Reddy added that the margin improvement seen in Q2 is sustainable, with expected margins in the 8–9% range, supported by stable procurement trends.
Milk availability during the flush season has been impacted by erratic weather, but the company expects supply conditions to stabilise soon. Value-added products contributed 33% to the sales mix in H1FY26, down from 37% a year ago. Reddy clarified that this decline was due to lower bulk sales of inventory items such as milk powder and butter, not a drop in retail VAP consumption.
On the acquisition of Osam Dairy in Eastern India, the MD said the 10% organic growth guidance excludes contributions from the newly acquired unit. Osam is expected to add around ₹100 crore in revenue this fiscal, given that it will be consolidated for only eight months. Dodla Dairy’s total revenue is expected to cross ₹4,000 crore in FY26, making Osam’s contribution relatively modest.
The company’s Orgafeed (animal feed) division reported ₹83 crore in H1FY26 revenue and ₹12–13 crore in EBITDA. Reddy expects the feed vertical to grow 25–30% this year, with stable margins. Capacity utilisation has already reached about 60% within 18 months of the unit’s expansion.
Kenya and Uganda together contribute around 11% to Dodla Dairy’s revenue. Reddy said volumes in Kenya have grown strongly as the company increases market share. Margins in Kenya are slightly higher than in India, though the immediate focus is on scaling volumes.
Dodla Dairy’s new Maharashtra facility is expected to begin commercial operations by March 2027. The company is prioritising the state mainly for procurement due to high milk availability, even as competition rises from both southern and northern players.
