Dodla Dairy Ltd just dropped its FY25 audited results. And while the company’s revenue from operations rose to a healthy ₹3,720 Cr for the year, profits seem to have been hit by rising costs, flat growth, and what we can only describe as doodh mein paani vibes.
Let’s churn this data.
📌 At a Glance
| Metric | FY24-25 (₹ Cr) | FY23-24 (₹ Cr) | Change (%) |
|---|---|---|---|
| Revenue from Operations | ₹3,720.07 | ₹3,265.60 | +13.9% |
| Net Profit | ₹679.65 | ₹951.6 | -28.6% |
| EBITDA | ₹1,347.1 | ₹1,578.3 | -14.7% |
| EPS (Basic & Diluted) | ₹43.27 | ₹60.52 | -28.5% |
| Other Income | ₹53.29 | ₹59.83 | -10.9% |
| Total Expenses | ₹3,417.6 | ₹2,981.4 | +14.6% |
Source: Company filings – FY25 audited consolidated results
🏢 About the Company
Dodla Dairy is one of South India’s largest milk processors. From raw milk collection in rural towns to high-margin value-added products like curd, paneer, and ghee — they do it all.
Segment? Single-segment: “Processing and selling milk and milk products.”
Think Amul, but South Indian, and publicly listed.
👔 Key Managerial Personnel
- MD: Sunil Reddy Dodla
- Auditor: S.R. Batliboi & Associates LLP (valid peer review cert till July 2027)
- Board Meeting for Results: Held on 19 May 2025, 10:20 AM to 11:55 AM (that’s peak tea time in Hyderabad)
💸 Financial Performance Breakdown
🔻 Profit Decline
Despite higher revenues, net profit dipped from ₹951.6 Cr to ₹679.6 Cr. Why?
- Milk procurement costs up: ₹2,467 Cr → ₹3,035 Cr (yikes)
- Other expenses ballooned to ₹480 Cr
- Finance costs doubled
- Depreciation expense rose 8%
Basically, cows were expensive this year 🐄💰
📈 Revenue Growth?
Yes, 13.9%. But that’s only half the story. When expenses grow faster than income, you get… Dodla FY25.
🧮 Forward-Looking Fair Value (FV) Estimate
Assumptions:
- FY26E PAT: ₹800 Cr (modest recovery)
- P/E target: 18x (historical avg for dairy peers like Heritage)
- Shares: 6.03 Cr
🧠 Fair Value = ₹800 Cr × 18 / 6.03 Cr = ₹2,388 per share
⚠️ Current EPS is ₹43.27. At 18x PE = ₹778 target. So, unless profits recover big time, upside is limited short-term.
🔮 Estimated Growth & Industry Outlook
💡 Pros
- India’s per capita dairy consumption is rising.
- Value-added dairy = high margin.
- Dodla is investing in CAPEX, automation, and expanding cold chain.
🚨 Cons
- Highly competitive market (Heritage, Amul, Hatsun)
- Milk procurement prices are unpredictable.
- Climate risk (drought = no grass = no milk = no business)
🧠 EduInvesting Take
Dodla Dairy isn’t sour — but it’s also not sweet right now.
The company’s fundamentals are intact, revenue is growing, but profits have taken a gut-punch. Think of it as a startup entering puberty: voice cracks, mood swings, acne (aka, rising costs).
Short-Term Outlook: 🧊 Cool as curd. Not much upside unless margins recover.
Long-Term Outlook: 🧈 Solid. India will keep drinking milk. And if Dodla adds more value-added SKUs (Greek yogurt, anyone?), margins can fatten again.
🧨 Risks & Red Flags
- Procurement price volatility
- No revenue diversification (single-segment business)
- Fixed cost pressures (plant investments, logistics)
- Milk wastage and quality control (huge spoilage costs)
🏁 Final Verdict: Hold, but Don’t Load the Fridge Yet
Dodla is not a multibagger in its current form, but it’s no dud either. Watch for Q1FY26 margins and procurement strategy. If inflation cools and VAPs grow, it might just cream the market.
📝 Tags: dodla dairy results, dodla profit FY25, milk stock india, dodla dairy share analysis, dairy sector stock FY25, indian dairy company results
