Revenue Crosses ₹4,125 Crore; Net-Debt-Free Balance Sheet Maintained; ₹5 Per Share Dividend Announced.
Hyderabad, India: Dodla Dairy Limited has reported its strongest-ever financial performance for FY 2025-26, posting record consolidated revenue of ₹4,125.20 crore, a year-on-year increase of 10.89%, while maintaining a net-debt-free balance sheet and generating robust operating cash flows.
The company also strengthened its national footprint through the acquisition of OSAM Dairy, advanced key greenfield expansion projects in Maharashtra and Uganda, and announced a final dividend of ₹5 per equity share.
The results were disclosed in the company’s Annual Report for FY 2025-26 ahead of its 31st Annual General Meeting scheduled for July 14, 2026.
Record Revenue Despite Challenging Milk Procurement Environment
Dodla Dairy achieved consolidated revenue from operations of ₹4,125.20 crore during FY26 compared to ₹3,720.07 crore in FY25.
Consolidated Profit After Tax (PAT) increased to ₹267 crore from ₹260 crore in the previous year, while Basic Earnings Per Share (EPS) improved to ₹44.26.
The company generated approximately ₹295 crore in operating cash flow during the year and closed FY26 with cash and liquid investments of nearly ₹659 crore, reinforcing its debt-free financial position.
Management noted that performance was achieved despite elevated milk procurement prices and supply constraints across several milk-producing regions.
Milk Procurement and Value-Added Products Continue to Grow
Average consolidated milk procurement reached 18.75 lakh litres per day (LLPD), while average milk sales increased to 13.2 LLPD.
A major highlight of the year was the continued focus on value-added dairy products (VAP), which contributed 29.2% of total revenue.
The company strategically reduced bulk commodity sales of skim milk powder (SMP) and butter, which declined to ₹86 crore from ₹312 crore in the previous year. Instead, more milk was directed toward branded, higher-margin products.
Average milk procurement cost rose significantly to ₹38.90 per litre compared to ₹35.40 per litre in FY25, reflecting industry-wide inflation in raw milk prices.
OSAM Acquisition Strengthens Presence in Bihar and Jharkhand
One of the most significant developments during FY26 was Dodla Dairy’s acquisition of HR Food Processing Private Limited, popularly known as OSAM Dairy.
The acquisition, completed on August 1, 2025, involved a total investment of ₹271 crore and provides Dodla Dairy with immediate access to the rapidly growing dairy markets of Bihar and Jharkhand.
OSAM contributes processing capacity of approximately 2.2 lakh litres per day and strengthens Dodla’s geographic diversification strategy beyond its traditional southern Indian markets.
The acquisition generated goodwill of ₹131.63 crore and contributed revenue of ₹214.69 crore to the group during the post-acquisition period.
Major Capacity Expansion Projects Underway
Dodla Dairy continues to invest aggressively in long-term growth through new processing infrastructure.
Maharashtra Greenfield Dairy Plant
The company is developing a greenfield dairy processing facility in Solapur, Maharashtra, with a planned investment of ₹280 crore.
As of March 2026, cumulative investment had reached ₹106 crore. The facility is expected to commence operations by the end of FY27 and will add processing capacity of approximately 10 lakh litres per day.
Uganda Expansion
Dodla is also expanding its African operations through a new dairy project in Uganda.
The company has secured a 70-acre land parcel for the project and plans to invest approximately ₹60 crore. The facility is expected to add around 2 lakh litres per day of milk processing capacity by FY29.
Africa Business Delivers Strong Growth
Dodla Dairy’s African operations continued to emerge as an important growth engine.
Revenue from Africa increased by 33% year-on-year to ₹504 crore during FY26.
EBITDA from the region rose significantly from ₹41.6 crore to ₹57.2 crore, highlighting improved operational efficiency and growing consumer demand in East African markets.
Animal Nutrition Business Expands
The company’s wholly-owned cattle feed subsidiary, Orgafeed, delivered strong growth during the year.
Orgafeed reported revenue of ₹164.42 crore, representing a 24% increase over FY25, with an EBITDA margin of 13.1%.
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The business currently operates feed manufacturing facilities in Kadapa and Kuppam with a combined installed capacity of 480 metric tonnes per day.
Dividend and AGM Details
The Board has recommended a final dividend of ₹5 per equity share of face value ₹10 each for FY26.
The record date has been fixed as July 7, 2026, while dividend payments are expected to be completed on or before August 10, 2026.
The company’s 31st Annual General Meeting will be conducted virtually on July 14, 2026.
Strong Credit Profile Maintained
Following the financial year-end, credit rating agency ICRA Limited reaffirmed Dodla Dairy’s long-term credit rating at [ICRA]AA (Stable) and short-term rating at [ICRA]A1+.
The ratings reflect the company’s strong financial position, healthy liquidity, conservative capital structure, and established presence in India’s dairy sector.
Outlook
With record revenue, a debt-free balance sheet, strategic expansion into eastern India, continued growth in value-added dairy products, and increasing international operations, Dodla Dairy enters FY27 from a position of considerable strength.
The commissioning of the Maharashtra plant, integration of OSAM Dairy, expansion in Uganda, and continued focus on branded dairy products are expected to be the key growth drivers over the next few years.
As India’s dairy market continues to evolve toward organized processing and premium dairy consumption, Dodla Dairy appears well positioned to capitalize on emerging opportunities while maintaining financial discipline and sustainable growth.
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