Dodla Dairy's Profit Plunge Mars Strong Revenue Growth
Revenue jumped 19% YoY, but profit fell sharply by 35%, squeezing net profit margin to a multi-quarter low.
Dodla Dairy reported robust revenue growth in Q1 FY27, but profitability collapsed. Net profit fell over 35% year-on-year, dragging the net profit margin down to 3.4%.
Dodla Dairy delivered a quarter of sharply diverging results. While revenue growth remained strong, profitability took a significant hit, with net profit falling over a third compared to the same period last year. This has squeezed the company's net profit margin to its lowest level in recent quarters.
Revenue for the quarter ended June 2026 came in at ₹1,198 crore, a solid 19.0% increase year-on-year and an 11.5% sequential improvement from the March quarter. However, profit after tax (PAT) plummeted to ₹40.64 crore, down 35.4% from Q1 FY26 and a steep 41.7% drop from the previous quarter. This decoupling of top-line and bottom-line growth highlights a severe pressure on margins.
The net profit margin contracted to 3.4%, down from 6.2% a year ago and 6.5% last quarter. This decline is clearly visible in the company's recent performance.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period | Quarter ended June 2026 | Quarter ended March 2026 | Quarter ended June 2025 |
| Revenue (₹ Cr) | 1,197.94YoY +19% | 1,074.47 | 1,006.87 |
| Profit (₹ Cr) | 40.64YoY -35% | 69.73 | 62.87 |
| Net Profit Margin (%) | 3.4YoY -45% | 6.5 | 6.2 |
Key Points
- The trailing twelve-month (TTM) net profit margin stands at 5.7%, still above the latest quarter but well below recent quarterly averages.
- The company maintains a robust balance sheet, with a very low debt-to-equity ratio of 0.02 and a high interest coverage of 69x.
- Despite a 19% decline in its share price over the past year, the stock trades at a significant discount to its industry, with a P/E of 21.9 versus an industry average of 46.8.
While sales momentum is clearly intact, the sharp profit decline raises questions about cost management. The coming quarters will be crucial for Dodla Dairy to demonstrate it can translate its strong revenue growth back into healthier profitability.
Live Chart
· DODLA
(BSE)
ISIN: INE021O01019
Also read
Want this applied to your portfolio?
Talk to a HexaWealth advisor, or sync your mutual fund data for insights tailored to your holdings.