Dodla Dairy Ltd

Meeting Details

• Date: 27 July 2026; earnings call with analysts/investors.
• Type/Mode: group earnings call; audio conference.
• Organizer: Dodla Dairy Limited.

Participants

• Key company participant: Company Secretary & Compliance Officer.

Purpose

• Purpose: discuss Q1 FY27 results with investors.

Additional Notes

• Audio recording of the earnings call uploaded on the company website.

Business Overview

• Dodla Dairy is an integrated dairy company with liquids and value-added dairy products.
• Core operations in South India; expansion into East India and Africa.
• Product portfolio includes liquid milk, curd, ghee, paneer, cheese, yogurt, and ice creams.
• OSAM acquisition (Aug 2025) strengthened presence in Bihar/Jharkhand and Eastern India.
• July 2026 OSAM Dairy acquisition expands the East footprint.
• Capex plan of ₹590 Cr (2026–28) to add ~15 LLPD capacity.
• FY26 net debt-free status; ROCE 16.0% reflects healthy capital efficiency.

Key Operational Highlights

• Q1 FY27 revenue ₹1,197.9 Cr, highest quarterly revenue.
• EBITDA ₹64.9 Cr; EBITDA margin 5.4%.
• PAT ₹40.6 Cr; PAT margin 3.4%.
• Milk procurement reached 21.1 LLPD, up 13% YoY.
• Milk sales 13.6 LLPD, up 14.5% YoY.
• VAP sales ₹414.7 Cr, 34.6% of total; bulk VAP excluded.
• Curd sales volume 642.6 MTPD, up 41.4% YoY.
• Africa revenue up 45.6% YoY; milk sales up 52.3% YoY; EBITDA ₹24.2 Cr.
• OSAM margins improving versus FY26 amid higher procurement costs.
• Capex progress: Maharashtra capex ₹280 Cr; Uganda capex ₹60 Cr; total Rs 590 Cr.
• OSAM Dairy acquisition completed Jul 2026 for ₹247.2 Cr.
• Maharashtra and East India expansion on track; BIADA land parcel under evaluation.
• Milk parlour inaugurated in Patna, Bihar.
• Acquisition of OSAM Dairy completed; capacity ~2.2 LLPD; East India expansion.

Financial Performance

• FY26 revenues ₹4,125.2 Cr; YoY growth 10.9%.
• Gross profit ₹1,054.8 Cr; gross margin 25.6%.
• EBITDA ₹308.5 Cr; EBITDA margin 7.5%.
• PAT ₹267.0 Cr; PAT margin 6.5%.
• Net debt-free status; ROCE 16.0%.
• Equity ₹1,674.1 Cr; Total assets ₹2,096.4 Cr.

Capital Structure & Liquidity

• Net debt-free; no long-term borrowings.
• Capex plan ₹590 Cr for FY26–28; ₹350 Cr spent in FY26.
• OSAM Dairy acquisition completed for ₹247.2 Cr in Jul 2026.

Strategic Priorities & Outlook

• Capex to raise capacity by ~15 LLPD; end-FY27 commercial ops.
• Expand VAP portfolio to improve margins.
• Geographic expansion: Maharashtra belt and East India.
• Invest ₹11.6 Cr for 2% stake in Sids Farm (D2C brand).
• Improve OSAM efficiency; strengthen procurement and chilling infra.
• Maintain net cash position; capex-led growth and margin expansion.

Risks & Mitigation

• High procurement prices pressure gross margins; pricing pass-through gradual.
• Rising packaging costs; transport/fuel and wage costs.
• Regulatory and expansion execution risks; mitigated by disciplined capex and efficiency.

Governance & Leadership

• Promoter stake 59% as of 30 Jun 2026.
• Key investors: SBI MF 8.54%, HDFC Small Cap 7.77%, DSP Small Cap 6.60%.
• Board includes MD Sunil Reddy, Chairman Dodla Sesha Reddy, and independent directors.

Financial highlights

• Q1 FY27 revenue ₹1,197.9 Cr, up 19.0% YoY; QoQ ₹1,074.5 Cr.
• EBITDA ₹64.9 Cr, margin 5.4%, down from ₹82.5 Cr and 8.2% YoY.
• PAT ₹40.6 Cr, margin 3.4%, down from ₹62.9 Cr and 6.2% YoY.
• EPS ₹6.7; down from ₹10.4 YoY.

Volume and product mix

• Milk procurement 21.1 LLPD, up 13.0% YoY (highest ever).
• Milk sales 13.6 LLPD, up 14.5% YoY.
• VAP sales ₹414.7 Cr, 34.6% of total.
• Bulk VAPs SMP and butter not present; ₹57.7 in Q1 FY26.
• Curd volume 642.6 MTPD, up 41.4%.

Geographies and business segments

• Africa revenue growth 45.6% YoY; EBITDA ₹24.2 Cr.
• Orgafeed revenue growth 25.9%; EBITDA margin 10.5%.
• OSAM: higher prices pressure gross margins; QoQ operating margins improved.

Strategic investment

• Board approved ₹11.6 Cr for 2% stake in Sids Farm Pvt Ltd at ₹500 Cr pre-money.

Outlook and strategy

• MD notes highest quarterly revenue; expects prices to normalise in Q2.
• Expansion plan: capacity increase, geographic footprint, wider distribution, higher VAP mix.

Financial results

• Approved unaudited standalone and consolidated quarterly results for quarter ended 30 June 2026.
• Took note of unmodified Limited Review Reports by S.R. Batliboi & Associates LLP.
• Results and Limited Review Reports enclosed.

Sids Farm Private Limited acquisition

• Approved acquisition of 2% of Sids Farm Private Limited's issued share capital.
• Subject to conditions precedent and other mutual terms.
• Cash consideration INR 11,64,56,733; payment via primary equity subscription.
• Price per share INR 4,203; post-issue stake ~2% on fully diluted basis.
• Completion expected within ~1 month from execution of definitive agreements.
• Not a related-party transaction; arm's-length basis.
• Funding from internal accruals; impact on financials not material.
• Sids Farm FY2025-26 turnover: INR 240 Crores.
• Regulatory approvals: none beyond customary corporate approvals.

Auditor remarks

• Independent reviews indicate no material misstatement in standalone and consolidated results.

Meeting Details

• Date and time: Monday, 27 July 2026 at 09:00 IST.
• Type and mode: group earnings call, virtual.
• Event/organiser: Dodla Dairy Earnings Call.
• Key company participants: MD, CEO, CFO.
• Purpose: discuss Q1 FY27 operational and financial performance for quarter ended 30 June 2026.

Meeting Details

• Board meeting scheduled on Saturday, 25 July 2026 at the company's registered office in Hyderabad.

Key Agenda Items

• To consider unaudited standalone and consolidated financial results for quarter ended 30 June 2026, with Limited Review Reports.

Other Notes

• Trading window will remain closed until 48 hours after declaration of results.

AGM Details

• 31st AGM held on 14 July 2026 via video conferencing and OAVM.
• Book closure: 7 July 2026 (inclusive).
• Record date for entitlement: 7 July 2026.

Resolutions & Outcomes

• Resolution 1: Standalone and consolidated financial statements adopted.
• Resolution 2: Final dividend on equity shares approved.
• Resolution 3: Akshay Tanna re-appointed by rotation approved.
• Resolution 4: Cost Auditor remuneration for FY2027 ratified.
• Resolution 5: Vinoda Kailas re-appointed as Independent Woman Director.
• Resolution 6: Consultancy remuneration to Mr. Sesha Reddy Dodla approved.

Directors

• Directors re-appointed: Akshay Tanna; Vinoda Kailas as Independent Woman Director.

Auditors

• Cost Auditor remuneration ratified for FY2027.

Related Party Transactions

• Consultancy fees to a non-executive director approved.

AGM Details

• Date, time, mode: 14 July 2026, 11:00 a.m. IST, conducted via VC/OAVM.
• Meeting duration: 11:00 a.m. to 12:39 p.m. IST.
• Video recording of proceedings available on the company website.

Key Resolutions

• Ordinary Resolution 1: Adopt standalone and consolidated financial statements for FY2025-26.
• Ordinary Resolution 2: Final dividend on equity shares for FY2025-26.
• Ordinary Resolution 3: Re-appoint Akshay Tanna as director on rotation.
• Special Resolution 4: Ratify remuneration of Cost Auditors for FY ending 31 March 2027.
• Special Resolution 5: Approve re-appointment of Vinoda Kailas as Independent Woman Director.
• Special Resolution 6: Pay consultancy/remuneration to Mr. Sesha Reddy Dodla, NED, above others.

Dividend

• Final dividend on equity shares proposed/approved for FY2025-26.

Director Changes

• Re-appointment of Akshay Tanna as director (retiring by rotation).
• Re-appointment of Vinoda Kailas as Independent Woman Director.

Auditor Matters

• Cost Auditors' remuneration ratified for FY ending 31 March 2027.
• No change in statutory auditors disclosed.

Voting Status

• Voting results to be published on the company website and stock exchanges.

Rating action

• Rating action: ICRA ESG Ratings revised Dodla Dairy's ESG Impact Rating to 71 (Good) from 70 (Good).

Details

• Instrument: ESG Impact Rating; current value 71, Good.
• Rating agency: ICRA ESG Ratings Limited.
• Pillar scores: Environment 78, Social 66, Governance 66.
• Overall symbol: Good; surveillance due within one year.