Dodla Dairy Share Price Falls 5%: Net Profit Decline Explained
Dodla Dairy Ltd., one of India’s leading dairy companies, has been facing a challenging quarter, which has led to a 5% decline in its share price. The company’s net profit for the quarter ended June 30, 2026, fell 3.2% year-on-year to Rs 62.9 crore from Rs 65 crore in the corresponding period last year.
So, what’s behind the decline in net profit? Let’s break it down.
EBITDA Decline
Dodla Dairy’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) declined 21.5% year-on-year to Rs 82.5 crore from Rs 105 crore. This decline was primarily due to a decrease in the company’s revenue margin, which fell 330 basis points to 8.2% from 11.5%.
Revenue Growth
While Dodla Dairy’s revenue rose 10.5% year-on-year to Rs 1,007 crore from Rs 912 crore, the growth was not enough to offset the decline in its margin. The company’s revenue growth was primarily driven by an increase in its milk procurement, which recorded its highest ever level of 18.7 lakh litres per day.
Seasonal Variation
Dodla Dairy’s management attributed the decline in net profit to the seasonal variation in milk prices during the quarter. The company said that the early monsoon led to an increase in the number of rainy days, which affected milk prices and, in turn, impacted its profitability.
Investor Sentiment
The decline in Dodla Dairy’s share price was reflected in the broader market, with the Nifty 50 index trading 0.28% higher. The company’s share price was last trading at Rs 1,385.30 apiece, down 5.01% from the previous close.
Analyst Views
Four analysts tracking the company maintain a ‘buy’ rating on Dodla Dairy, according to Bloomberg data. The average 12-month consensus price target implies an upside of 14%, indicating that analysts are still optimistic about the company’s long-term prospects.
In conclusion, the decline in Dodla Dairy’s net profit was primarily due to a decrease in its revenue margin, which was impacted by the seasonal variation in milk prices. While the company’s revenue growth was encouraging, it was not enough to offset the decline in its margin. Investors should keep an eye on the company’s future earnings announcements to gauge the sustainability of its revenue growth.
