1. Opening Hook
While most of India was drenched in erratic rains, Dodla Dairy managed to milk ₹1,019 crore in Q2FY26 — because apparently, lactose never goes out of style. With OSAM Dairy’s 2-month cameo, margins curdled slightly but refused to split. The management says this is all “strategic balance” — which sounds like yoga but for cows.As the Bhagavad Gita reminds us,“Action is greater than inaction.”Dodla clearly acted — buying OSAM and churning profit despite monsoon chaos. Stick around — this call only gets creamier from here.
2. At a Glance
- Revenue ₹1,019 Cr –Crossed the ₹1,000 Cr mark again; milked it twice in a row.
- EBITDA ₹93 Cr (9.1%) –Cream stayed thick despite rains.
- PAT ₹66 Cr (6.4%) –Profit didn’t sour; stayed fresh.
- Gross Margin 27.7% –Grew fatter from last year’s 25.5%.
- Employee Cost ↑26% –New hires and OSAM’s herd added weight.
- Cash Balance ₹596 Cr –Plenty of butter to spread around.
- OSAM Revenue ₹52.6 Cr –Freshly pasteurized acquisition already in the mix.
3. Management’s Key Commentary
Sunil Reddy (MD):“We’ve crossed ₹1,000 Cr revenue for the second straight quarter.”(Translation: We’re officially addicted to the four-digit club.)
Reddy:“Bulk sales dropped to ₹28 Cr vs ₹167 Cr last year.”(Translation: Strategic fasting — we’re on a low-fat diet.)
BVK Reddy (CEO):“Milk procurement rose 13.4% to 19.5 lakh litres/day.”(Translation: The cows have been hitting the gym.)🐄
Murali Raju (CFO):“Employee costs rose due to OSAM and skilled hiring.”(Translation: HR finally had something to celebrate besides free milk.)
Sunil Reddy:“Brand spends included OTT and festival sponsorships.”(Translation: Ganpati got milked, digitally and spiritually.)
BVK Reddy:“OSAM’s EBITDA margin is 2-3%. We’ll fix that in 3 years.”(Translation: Project Moo-turnaround underway.)😏
Raju:“Ad spends up to ₹10 Cr from ₹7 Cr last year.”(Translation: Every rupee went into telling you
how creamy Dodla milk is.)
4. Numbers Decoded
| Metric | Q2FY26 | Q2FY25 | YoY Change | Comment |
|---|---|---|---|---|
| Revenue (₹ Cr) | 1,019 | 998 | +2.1% | Still churning growth |
| EBITDA (₹ Cr) | 93 | 91 | +2% | Butter layer holding strong |
| EBITDA Margin (%) | 9.1 | 9.1 | Flat | Milk-fat stable |
| PAT (₹ Cr) | 66 | 64 | +3% | Profits didn’t curdle |
| Gross Margin (%) | 27.7 | 25.5 | +220 bps | Premium milk, premium margins |
| Procurement (L/day) | 19.5 lakh | 17.2 lakh | +13.4% | More udders, more liters |
| Procurement Cost (₹/L) | 37.29 | 34.64 | +7.6% | Rainy season inflation |
| OSAM Revenue (₹ Cr, 2 mo.) | 52.6 | — | New | Freshly churned addition |
Analysis:Despite higher procurement costs, margins held up thanks to brand push and VAP (Value Added Products) sales. Africa grew 21.7% YoY, proving Dodla’s milk diplomacy works across continents.
5. Analyst Questions
Q:Why did bulk sales crash?A:Strategic balancing.(Translation: We just didn’t have enough milk to dump in bulk.)
Q:What’s driving VAP growth?A:Paneer and curd.(Translation: Indians still love their dairy religion.)
Q:What’s OSAM’s margin outlook?A:8–9% in 3 years.(Translation: Patience — even milk takes time to ferment.)
Q:Procurement prices rising?A:₹1-₹1.50 hike likely.(Translation: Blame the rain, not the cow.)
6.
