Ladies and gentlemen, the conference call for Dodla Dairy Limited will begin very shortly. Thank you for your patience, and please continue to stay connected. Ladies and gentlemen, good day and welcome to the Dodla Dairy Limited Q1 FY 2027 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on the date of this call. These statements do not guarantee the future performance of the company, and it may involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone.
Please note that this conference is being recorded. I now hand the conference over to Mr. Dodla Sunil Reddy, Managing Director, for his opening remarks. Thank you, and over to you, sir.
Thank you very much. Good morning to all the participants. On behalf of Dodla Dairy Limited, I extend a very warm welcome to everyone joining us on our call today. On this call, I am joined by our CEO, Mr. B.V.K. Reddy, our CFO, Mr. Murali Mohan Raju, and SGA, our Investor Relations advisors. I hope everyone had an opportunity to go through the financial results and investor presentation, which has been uploaded on the stock exchanges and our company website. Q1 FY 2027 was marked by highest ever quarterly revenue of INR 1,198 crore, a year-on-year increase of 19%, along with the record milk procurement of around 21.1 lakh liters per day, supported by the revival in the milk supply. EBITDA for the quarter stood at INR 65 crore, translating into an EBITDA margin of 5.4%, and PAT stood at INR 41 crore.
While milk availability has improved during the quarter, procurement prices did not come down as the focus was on building up the inventory for future requirements. Our strategy is in line with the overall industry trends. These elevated procurement prices were not fully passed on to the consumers, resulting in continued near-term pressure on our profitability. With this in view, we will be able to pass on the increase in price to our consumers in the forthcoming quarters. This said, the year-on-year decline in EBITDA and PAT is largely cyclical, driven by the input cost squeeze, and we expect gradual recovery from Q2 onwards. Our procurement network also continued to strengthen during the quarter. Procurement in Maharashtra and Karnataka improved, and we continue to add more farmers to our network.
Coming to our value-added products portfolio, we recorded our highest-ever sales of INR 415 crore, registering a 17.6% year-over-year growth, supported by prolonged summer seasons compared to the earlier onset of monsoons in Q1 FY 2026. We see a strong demand across our summer-oriented products such as Curd, buttermilk, flavored milk, ice cream, and other value-added products. Notably, the highest-ever number is achieved without any support from bulk sales for SMP or butter, reflecting our continuous efforts and dedication of our team towards the VAP product mix aspiration. On a like-to-like basis, excluding the bulk sales proportion, VAP delivered a solid growth of 30.6% year-over-year. Africa business delivered another strong quarter, recording the highest-ever revenues of INR 154 crore, representing a solid growth of 45.6% year-over-year. EBITDA also touched a record of INR 24 crore, increasing 74% year-over-year.
We continue to maintain our market share of approximately 50% in Uganda long-life milk category and yogurt. In Kenya, our processing capacity continues to ramp up towards full utilization, while our current market share has remained modest at around 2%-3%. Our Orgafeed segment continued to complement our core dairy operations during the quarter. Beyond its financial contribution, this also plays an important strategic role in strengthening our procurement ecosystem and maintaining good relations with farmers, enabling us to manage the industry-wide challenges such as periods of low milk availability. Coming to our OSAM business, the integration continues to progress well following the acquisition. Revenues for the quarter stood at INR 91 crore, and we are gradually seeing improvement in our profitability.
We continue to focus on improving operational efficiencies across sourcing and costs while strengthening our presence in Eastern Africa with driving long-term growth in this business. Speaking on our expansion initiatives, our Maharashtra greenfield project is progressing as per the plan and timelines for commercial operations remain intact. As part of our Eastern India expansion strategy, we continue to evaluate the optimal utilization of our Chandil plant, including the possibility of shifting flavored milk production at this plant to effectively serve the Bihar and Jharkhand markets. Following that new decisions on land allotted by BIADA, we are revisiting our strategy for capital allocation either towards the land or towards more capacity at the Chandil facility. We aim to strengthen our presence in a more capital effective manner.
I would like to inform you that the Board of Directors has approved a primary investment of INR 11.65 crore for around 2% stake in Sid's Farm Pvt Ltd. Sid's Farm is a premium dairy brand with a strong multi-regional direct to consumer and e-commerce presence. The investment aligns our core dairy business and provides exposure to the fast-growing premium and direct to consumer dairy segment. It also offers us an opportunity to associate with and support the growing, differentiated high-quality dairy brand. With this brief, I hand it over to CEO of our company, Mr. B.V.K. Reddy. Thank you very much.
Thank you, Mr. Sunil Reddy. Now I will walk through the quarter performance highlights of our business. Starting with our Dodla Dairy operation. During the quarter, as anticipated, the overall milk supply situation started improving, and we see some increase in our milk procurement volumes. Recorded at 21.1 LLPD, which is 13% year-on-year growth. It reflects the strength of our operational team, direct procurement model, and long-standing farmer relationship. The average procurement cost Q1 FY 2027 stood INR 41.3 per liter, as against INR 41 per liter in the previous quarter, and INR 37.4 per liter in the Q1 FY 2026. However, we continued with our approach of gradually passing on the price to the consumers and avoided taking a lump sum price hike.
Our average milk sales price for the quarter stood at INR 59.4 per liter, which was INR 58.4 per liter in the previous quarter, and INR 57.2 per liter in Q1 FY 2026. Therefore, our margin continues to remain under pressure for the quarter. To put the squeeze in context, the spread between our milk realization of INR 59.4 and the procurement cost of INR 41.3 narrowed INR 18.1 per liter from INR 19.8 a year ago, which largely explains the EBITDA margin decline from 8.2%- 5.4%. In addition to that, we witnessed some increase our operational cost, mainly due to input cost inflation and shift in product mix from bulk sales to milk and VAP sales. We see an increase in costs like transportation, wage rates, fuel, and packing.
The packing material cost increased by 48% during the quarter, rising 5.6% of our revenue as against 4.4% in the period of last year. We plan to pass on some part of this cost inflation to the end consumer in a gradual manner. Our pricing strategy remain in line with the overall industry trend and reflects a balanced approach. Our subsidiary, OSAM Dairy, is also progressing well. We see a healthy contribution from the company in terms of our curd and VAP sales volume. With consistent and gradual improvement in operational efficiencies, OSAM is headed towards our targeted scale and margin profile. Coming to Africa business, it delivered a strong revenue growth of 45.6% on year-on-year, largely driven by robust milk sales growth, 52.3% on year-on-year. This is an outcome of our targeted efforts on gaining market share in Kenya by strategically pricing our products.
Along with revenue growth, our profitability also improving steadily. We are confident in achieving robust and consistent revenue growth along with steady margin improvement in this business. Coming to feed, Orgafeed recorded revenue growth of 25.9% on year-on-year. Raw material price growth is still faster than the selling price, leading to continued pressure on the profitability. However, as anticipated, we see a sequential recovery in our profitability, our EBITDA margin for Q1 FY 2027 with marginal sequential improvements to 10.5%. Coming to product mix, our milk sales stood 13.6 LLPD, an increase of 14.5% on year-on-year. During the quarter, we delivered highest ever VAP sales number INR 414.7 crore as against INR 352.8 crore in Q1 FY 2026. This was mainly due to a seasonal variation explained by our MD, as well as improved contribution from our OSAM business.
Curd and curd-based products reported healthy growth of 41.4% year-on-year and stood at 642.6 million metric tons per day in terms of value. Curd sales grew by 44.9% year-on-year basis. Going ahead, we expect some moderation in the procurement cost from Q2 onwards, leading to start a gradual recovery in the margin profile for upcoming quarters. We are confident to mitigate this near-term pricing pressure and remain focused on effective execution and achieving our long-term objectives while delivering profitability growth. Now I request Mr. Murali Mohan Raju, our CFO, to highlight the financial quarters.
Thank you, Mr. B.V.K. Reddy, a very good morning to all the participants on the call. Talking about consolidated financial performance in Q1 FY 2027. Revenue from operations stood at INR 1,198 crore, the highest ever quarterly revenue, registering a 19% year-on-year growth. Gross profit for the quarter stood at INR 278 crore with a gross margin of 23.2%, as against 25.8% in Q1 FY 2026. Employee expenses for Q1 FY 2027 stood at INR 56 crore compared to INR 47 crore in the corresponding quarter last year. The 18% year-on-year increase was primarily due to OSAM addition during this quarter and higher employee costs pertaining to the minimum wage criteria as per new labor laws. Other expenses for the quarter were INR 159 crore compared to INR 130 crore in the corresponding quarter last year.
While other expenses remained broadly in line with revenue as a percentage of sale, the increase in absolute terms was primarily driven by higher transport, overhead, and fuel costs due to the shift in product mix from bulk sales to liquid milk and value-added products. EBITDA for the quarter stood at INR 65 crore with an EBITDA margin of 5.4%. Depreciation expense increased to INR 23 crore in Q1 FY 2027 from INR 18 crore in the corresponding quarter last year. Other income for the quarter stood at INR 14 crore. Unlike previous few quarters, we do not have any tax credits in Q1 FY 2027 related to any of the favorable income tax orders. Net profit for the quarter stood at INR 41 crore with a net profit margin of 3.4%.
On the balance sheet, we remain net debt-free with approximately INR 689 crore of cash and investment, which comfortably funds our INR 590 crore CapEx program along with the OSAM and Africa expansion without any leverage. Lastly, I would like to mention profitability includes purchase price allocation effects, goodwill amortization, and fair value adjustments. Hence, its underlying profitability runs ahead of the reported figure mentioned in our investor presentation. With this, we conclude the presentation and open the floor for further discussion.
Thank you. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Praveen Kumar with Acuitas Capital Advisors. Please go ahead.
Yes. Hello. Thanks for the opportunity. I had a couple of questions. The first one was on the margin trajectory. Can you walk us through how do you expect the margins to behave from here onwards over the next six to nine months, and also over the next two to three years? Can you walk us through what are the triggers? What are the near-term and mid-term triggers for improving these margins? Given what has happened on the procurement side and on the pricing side, do you think that margins have structurally reset downwards to some extent? That is the first question. The second question was on farms. Just want to understand thought process behind that. Why that 2%? Why that very minor kind of a step? What are the thought process behind that? Third question was on growth. If I look at the ex-
I'm sorry to interrupt, Praveen. You're breaking up every now and then.
Yeah.
Could you please change your location and use your phone on the handset mode in case if it's not on handset?
It is on handset. Is it better now?
Yes. Please go ahead.
The third question was on the procurement growth adjusted for OSAM. On a YoY basis, that seems to have grown around 5.3%. I just wanted to understand again that most of it has probably come from that Maharashtra scale-up. Does it mean that ex of Maharashtra, the other geographies, there hasn't been much of a procurement growth? Those are my three questions. Thank you.
Thanks a lot, Praveen. I'll answer the first two questions, and the third question regarding procurement growth in OSAM and Maharashtra, B.V.K. will answer. Margin trajectory, if you look at it, we are still confident that we will maintain between the 7% and 8 % EBITDA margins even in the current year that we are at. Like we were saying earlier, we were assuming that with those onset of monsoons, the procurement prices will taper down. Now it's seeming to be that there's not much of an increase in procurement in terms of the flux what we normally expect. We will have to slowly pass on the prices to the consumers, which we have already started in the process.
With that in view, the margins will start coming back to those between the 7% and 8%, subject to whatever is the one month of time that it consumes to pass on the prices. In the two to three-year scenario that we asked, we are confident of maintaining similar profit margins as we go forward, predominantly because of, A, when we look at it, we are adding on Maharashtra, there is improvement expected from OSAM. These are mostly seasonal corrections and not structural in nature. We are very confident in the two to three years it will come. It is not a reset of the margins, but more a seasonal correction that has been happening, that is the scenario.
Coming to the capital allocations to Sid's Farm on a minor stake, it is basically for us more in terms of learning and keeping a closer watch on how the modern high-value D2C products behave. For example, we believe that for a consumption pattern to become a habit from a fad, it will take significantly long time. To test the thesis and such other theses that we have, we are learning it with another rather than trying to create on our own. If it is showing good trajectory and possibility, we will also know beforehand as to how it is progressing. That is the intention of the capital farm. Regarding procurement growth, B.V.K. sir will explain what is happening in Bihar, it is not only Maharashtra, but also I think we have grown in Karnataka as well. B.V.K. will explain Bihar's and other growth in procurement.
In OSAM, if you see procurement last year, see, we don't have right data because they used to use lot of powder and butter. We know that we are avoiding that powder and butter, and now first quarter, more or less, we matched our sales to procurement. There is a slight growth, not much growth, because we have done a lot of corrections more than the procurement. We are going for farmer payment model. That's why things are going very slow. In Maharashtra, we have done a procurement growth. Last year to this year, Maharashtra, overall growth, we have done 13%. We have done a growth of 10% in Maharashtra also. Then Africa, we have done roughly about 28% procurement growth in only procurement growth. That's all from the procurement side.
Actually, my question on procurement was that if I take out OSAM, adjusted for OSAM, the remaining unit procurement grew 5.3%, right? When you are saying that Maharashtra grew around 10% and Africa grew 20+%, right?
No, Maharashtra is a part of India overall, but overall, we have grown by 13 .5 %.
No, no, I understand that. Overall.
OSAM almost it is flat. Africa and India together, we have grown more than 13%.
No, no, I understand that.
India, we have grown only 3%.
Yes, standalone only 3%, Praveen.
No, no, I understand that. I'm saying that ex OSAM, last year Q1 FY 2026 did not have OSAM, right? Your procurement was around 18.7, correct? Around, right?
Yeah.
This year, if I take out
I'll send you the breakups, Praveen. Just give me a minute. Out of 18.71%, the current year we have done 21.13%. The breakup is for Dodla Dairy India, 16.75%, now increased to 17.23%. That is 3% of growth. Overseas from 1.96%- 2.52%, that is 28.5% of growth. For HR Foods, last year we don't have it. Now we have 1.39 LLPD. The overall growth comes to 13%.
No, I understand that. I'm saying if from the 21.1%, if I take out OSAM, what about 1.39 LLPD?
1.39 LLPD.
Around 19.7%, correct?
Exactly.
Right. That 19.7%, I'm comparing it to the last year, 18.7%. Right?
Yes.
I'm saying that is a growth of 5.3%, which has mostly-
Exactly.
Come from Maharashtra and Africa, looks like. Right? My question was-
Mostly from Africa, followed by Maharashtra. Yeah.
Hence my question was that does it mean that the other geographies like Karnataka, Andhra, and others, have they de-grown during this time in terms of procurement?
It's not de-grown, it's maintained the same. It's again the summer months of the growth.
Okay. Do you expect this kind of a trend to continue where you don't expect much of a growth from the existing geographies, and largely Africa, Maharashtra, and Bihar is what will drive?
Basically what happens is, it's also what we play with pricing, because sometimes if the pricing of the particular states in comparison with other states are lower or higher, we try to manage as a blend of all the state's procurement. For example, Andhra is becoming more competitive and the prices are going higher. There, we are not expanding capacities or improving and waiting to see if the pricing is going too high. In certain areas where the pricing is more conducive to us because of our transport and being closer to the places where we operate, we enhance there. It's a blend of what we do also that plays into the role.
Understood. Thanks for the response.
Thank you. Participants, in the interest of time and fairness to others, please restrict yourselves to two questions. For any more questions, you may rejoin the queue. The next question comes from the line of Aniruddha Joshi with ICICI Securities. Please go ahead.
Thanks for the opportunity. Sir, two questions. Can we largely assume that the worst in terms of margins is largely behind, and in a way from here on, either there should be stability or there should be a recovery depending on the milk procurement prices. Also, have we largely passed on the entire increase in procurement prices as well as fuel prices increase via selling price hikes, or still we need to take some rounds of further price hikes? Second question, on the balance sheet, we have seen there is a drastic increase in goodwill and intangibles of almost INR 250- odd crore. I guess it's related to OSAM acquisition. Any plans for writing it off? And if it is written off, is there any tax benefit available on that? Thanks.
The first question B.V.K. will answer regarding our margin profile, what we had asked for, and I think the balance sheet, Murali will answer it. Yes, sir. Go ahead.
Yes, Aniruddha. See now, Africa, we have done whatever procurement hike was there. See, we compensate it with the sales increase also. That is number one. Orgafeed also what we have done, slightly already 70%-80% raw material price increase versus sales price correction, we have already done it. Only in Dodla Dairy also, we waited till July 1st week, because normally from July onwards procurement goes up. Normally prices will come down. This year it has not happened. That's why now we have already done corrections, mostly from 15th onwards, and most of the corrections are done. We are very confident that we'll get back to the same old last year, like 7%-8% margin profile.
Yeah.
With regard to the tangible, basically from like OSAM, we have INR 100 crore of goodwill is there. Apart from that, around INR 150 crore of branding is there. Based on that, we have an allocation, impairment of whatever it is there. It is a standard fair value of amortization. There is no any surprises of reduction in the fair value.
Understood.
Therefore, Aniruddha, we will not be providing anything for write-offs.
Impairment.
Impairment of assets. Correct, B.V.K. was saying, we expect that the worst is behind us in terms of the procurement prices coming to a stability. I do not think they will further increase dramatically. Marginal corrections might happen, we will have to take it in the correction to the consumers.
Okay. Sure, sir. This is very helpful. Just last question from my side. We have seen many players, especially in South India, are focusing very aggressively on ice cream segment and are setting up large plants also. Considering the investments and the growth in ice cream segment, there is a possibility that there is a solid growth in the industry. What will be Dodla Dairy's stance on, in a way, participating in the growth possibility for ice cream as an industry? If yes, what will be the CapEx or the investment plans on that? Yeah, that's it from my side. Many thanks.
Thank you, Aniruddha. Right now we do not have any plans of a major ice cream expansion as a capital expansion. We have also seen reasonably good traction in our ice cream volumes, which thankfully due to summer have done very well for us. I think we still have some leftover capacities because we can also produce ice cream previously during the season to stock for selling during the peak summer seasons. We are waiting to see how it pans out for us in the current year, maybe the decisions will be made, not currently, but hopefully in the future. Our growth has been from INR 16 crore- INR 22 crore in the first quarter itself. We think, once we see this year panning out, then we will make plans. Currently, we do not have any plans for major expansion.
Thank you. The next question comes from the line of Darshita Shah with DSP Asset Managers. Please go ahead.
Yeah. Thank you for the opportunity. My first question was regarding the quantum of the price hikes. B.V.K. sir mentioned we have done some corrections from July 15th onwards. If you could just mention the quantum over the rupees price hike we took last quarter, how much incremental price hike we've taken now?
From the Q1- Q1, if you compare the price increases, we have done an average price increase in Dodla of almost 2% increases in the consolidated, Dodla being around 1.4%, and Africa being around 4%. Currently we look at another around 2%, 2.5% correction in the prices in the ongoing quarters that we look at. Effectively, currently we should look at a 4%, 5%.
The 2.0%-2.5% is in standalone Dodla or Africa and Dodla put together?
The total represents all put together. Dodla alone was around 1.4% currently, but we think we will take another 2%-2.5% there.
Darshita, this is only milk realization price we are talking, not the blended.
Yes. Okay. Secondly.
Blended will be higher because ghee and other products, we have taken a substantially larger price increase. This is only milk.
Got it. Clear. Secondly, on the volumes, how do you expect the volume growth to be for the year? First quarter, of course, we have done quite well, but how do you expect it to be for the full year considering the price hikes that we are taking in?
Maintain our normal steady things of that 8%-10% in India as volume growth, the price hikes will add to the value growth. That's what we look at.
Okay. There's no change on the 8%-10% volume growth number despite the price hike, sir?
Yeah.
Got it. Okay, great. That's all from my side. Thank you.
The next question comes from the line of Yash Goenka with Awriga Capital Advisors LLP. Please go ahead.
Hi, sir. Am I audible?
Yes, Yash, go ahead, please.
Hi. Sir, my question is on pricing. What are the price hikes taken by cooperatives in the region we are operating in? Have you seen cooperatives taking price hikes from Tamil Nadu?
Price hikes in Tamil Nadu, cooperative Amul has taken a price hike in the ghee. Nandini has taken price hikes in ghee, and the national cooperatives had taken a price hike earlier in milk. We anticipate also they will also be forced to take price hikes, if not currently, in a matter of time. In spite of that, we are continuing with the price hikes that we will have to take. Even we do not know when, but I'm sure they will have to take because the differential is becoming large, and we are seeing pressure coming on the ground in terms of their payments to be made to their backend farmers and it's getting delayed there.
Okay. Sir, what is your price gap today with these cooperatives?
Almost averaging, because depending on product or whatever, I think between Tamil Nadu will be the highest with almost more than a INR 10 price gap, and in Karnataka it might be INR 6, INR 7 price gap. Those are the only two areas where we have a significantly large price gap to the cooperatives.
Okay. Sir, my second question would be, what kind of price hikes have you taken in the regions where your market share is stronger compared to the ones where your market share is weaker?
In terms of absolute number, it will be around an INR 2 price increases that we have taken as a correction across.
Thank you. The next question comes from the line of Abhishek Mathur with Systematix Groups. Please go ahead.
Yes, hi, sir. Thank you for the opportunity. Sir, you've mentioned in the presentation that you expect the 2Q milk procurement cost to normalize in the second quarter. What is leading you to sort of expect this? Is it only the improvement in the milk supply in Maharashtra, or are there other drivers due to which you are seeing a normalization of milk procurement cost? Also, if you can help with what was the average procurement cost that you saw in the June month, and what is the procurement cost that you saw in the July month also? That's my first question.
Thank you. Basically, what we mean by normalization is whatever the price hikes that are taken will maintain the same. You won't see a decline in the procurement prices, is what the normalization means. I think with specific numbers in terms of what the price of milk, they were almost the same, in terms of June and July. I think if you want the specific number of prices that we were-
Price, basically average is around INR 31. Now also it is running around INR 31.20, more or less.
See, last two months, in the month of May, June, July, overall procurement cost is standstill. It is in the same level. Only we have done the sales correction, average INR 2 per liter milk, VAP we have done INR 3-INR 4 correction.
Got it, sir. That's helpful. Secondly, just a bookkeeping question. If you can help with the numbers for the consol overall realization for 1Q, the VAP consol realization, and the standalone and Africa realizations, all for 1Q, please.
One minute, Murali will give you those numbers of 1Q for the realization that we have.
Sir, overall realization of the milk is basically per liter.
No, sir, overall consol including milk and VAP and everything.
Overall consol is INR 62.78 last year. Current year it is INR 61.78, because the bulk was there in the last year. If you exclude the bulk, last year it is INR 59.82, current year it is INR 61.78.
For VAP, sir, VAP consol?
VAP consol, it is basically excluding the fat. It is 64.11% for the current year. Last year, 61.32%. VAP products, 64.4% is current quarter. Last quarter it is only 49.8%.
Right. finally for-
Fat products. Fat and-
Yeah, only butter and ghee.
Lastly, sir, for standalone and for Africa, what are the realizations?
I will give you the standalone. You see, Africa, even Kenya and Uganda, average realization is INR 65.
Sir, last quarter.
Yeah, last quarter to this quarter, now I'll give a comparison. Last year, if you see, Uganda, we were at INR 59.36, and this quarter, INR 65.31. Similarly, even Kenya also, we were at INR 58, now we're now INR 65.
Got it, sir. Finally for standalone?
Standalone, sir, overall excluding the bulk product is 59.99%-61.36% for the India standalone. Overall, including fat products, it is 59.90%-62.88%. Including the bulk, it is 63.24% of last year to 60.88% of current year.
Thank you. The next question comes from the line of Darshit Vora with Asit Mehta Institutional Equities. Please go ahead.
Yeah, hello. Am I audible?
Yes, Darshit.
Thank you for the opportunity and congrats on the strong growth and revenues. My first question actually is that if you look at VAP sales ex of milk and curd, then the growth has been somewhat lower when compared to historical growth rates that we've seen. Any particular reason for that?
Basically, for us, the other VAPs considered to be very much smaller. The major contribution does come from curd. Even if you see curd slightly increasing, it'll be better. I think I'll just check the numbers, but like ice cream and Paneer, we have done much better in terms of growth, like INR 14 crore last quarter to INR 22 crore this quarter. I think Murali will explain the specific numbers in VAP minus c urd, is what he'll explain.
In the milk, we have grown 13.47%. In the curd and curd products, we have grown by 31.43%. The other VAP products, 34.62%. The fat and fat products, which we have reduced it, that is a de-growth of 46% in the consumer. Apart from that, we have exited completely from the bulk sale, which was negative. That is around INR 57 crore, which was there in the last quarter, we don't have done this.
When we say curd and curd products, it's not only curd that we talk there, but we talk of our buttermilk, lassi, and other fermented products, which also do well for us.
All right. Got it. Okay. Secondly, you've done increased procurement and you have mentioned that the procurement is not going to slow down from here onwards. Do we see bulk sales coming back? If yes, then what kind of a quantum are we looking at?
I think this year there won't be enough quantity of bulk sales. We will have to be net buyers of commodity if required because this is supposedly the flush season where we should have seen a surge in volume growth of 20%-25%, which is not happening and maintaining more of an even keel. With that, I think we don't have much of bulk sales available for this year.
All right. Great. Just final question there. Just wanted the curd sales in INR terms for the quarter?
Curd sales in INR terms for India, including all the curd products will be, and Murali will give you the specifics.
Yeah. INR 333.9 crore for the current quarter.
All right.
Does that answer your question, Darshit?
Yes. Thank you so much.
The next question comes from the line of Resha Mehta with Green Edge Wealth. Please go ahead.
Yes, sir. Thank you. The first quarter consolidated revenue growth has been very good, right? Would you like to give some revenue guidance for the full financial year consolidated revenue growth?
We will again target the 10% of volume growth and 15% of revenue growth that we keep targeting. We might have minor corrections here and there, but consolidated, we will give the same guidance of 10% of volume and 15% by revenue.
Right. Can you talk about your standalone VAP growth, in terms of revenues for the last financial year, FY 2026 versus FY 2025, and also for the current quarter, which is Q1 of FY 2027 versus Q1 of FY 2026?
You want the FY 2025 whole year comparison and the current quarter comparison, ma'am?
Yeah.
Yes. Correct.
I think Murali will give you that in terms of the whole year and the current quarter. He'll start with the current quarter.
Current quarter India, I'll talk about first. Current quarter growth with regard to the value, it is around 4.9% in the milk and 34% in the curd and curd products.
I want the VAP revenues. Standalone VAP revenues. Yeah, for the said time period. Yeah.
From INR 245 crore- INR 332 crore. Excluding bulk.
Sorry, INR 300 and?
INR 332.
INR 332. INR 245 vs INR 332. Okay, so that's a 36% VAP growth in the standalone, right?
Yes.
Okay. Get it. For FY 2026 vs FY 2025, broadly you have the growth numbers?
Yeah. INR 769 crore of last year to current year INR 842 crore. These are excluding the ghee and butter of either consumer or the bulk. I'm talking about pure VAP.
Yeah. Fermented products.
Fermented products. Consumer ghee, last year we had INR 81 crore. It is INR 106 crore currently.
Thank you. The next question comes from the line of [Aditya] with Securities Investment Management. Please go ahead.
Hi, sir. Thanks for the opportunity. Sir, if I look at your milk sales volumes, even excluding OSAM, they have dropped to now around 5%, which we were growing at around 8%, 9% for the last two, three quarters. This quarter, even after Africa has grown strongly, why is there a drop in milk sales volume? If you could just split the milk sales volume between India and Africa, how much have they grown?
Normally, milk sales does not increase much in summers because people use more of the products than the milk itself. I think in the coming quarters, the milk sales will grow a bit more and come back to the normal trends. Also, as our price differences increase in terms of the milk prices, we normally try to sell more of our higher realization milk and don't push much of our lower realization milk products. I think giving a comparison of what milk was in absolute terms between Africa and India, Murali will give you the specifics in terms of the milk quantity of Africa and India.
Yeah. Milk volume, we've done around INR 10.4 lakh current quarter. Last quarter, it is INR 10.25. There is a minor increase in the milk sorted that it is the fiscal year of the summer. With regard to the milk of overseas Africa, last year we've done 161,000. As against we done current quarter 214,000. That is around 33% of growth was there in the milk itself.
Great. Understood. Also you had mentioned that cooperatives have taken price hikes in ghee and butter, what about liquid milk? What kind of price hikes have they taken versus against last year?
Basically, I think the southern cooperatives have not taken a price hike. The national cooperatives like Amul and Mother Dairy have taken the price hike. We are anticipating that even the southern cooperatives should take a price hike, like I said earlier in the earlier question. For example, Amul is facing pressure of not taking the price hike, therefore not being able to pay the suppliers on time, therefore they will be bound to increase the pressure, which is showing in terms of, I think there were newspaper articles, I cannot confirm it, that certain higher loss-making milk SKUs they were not supplying and they've withdrawn certain higher loss-making SKUs from the markets. I think with those indicators, we should think that they will also be forced to take a price increase soon.
Do you think that would constrain us?
I'm sorry to interrupt, Aditya. I would request you to rejoin the queue. Thank you. The next question comes from the line of Ankit Shah with White Equity Investment Advisors. Please go ahead.
Thank you for taking my question, sir. Sir, for Africa, can you give the procurement volume split between Kenya and Uganda for Q1?
Only procurement volume, sir. B.V.K. will give you.
Yes.
Procurement volumes of Uganda and Kenya as well. Procurement volume in Uganda, Q1, 154,000 LPD. As against 129,000 LPD of previous year. If you take Kenya, and Kenya also, last year we have done procurement only, Q1 now 96,000 LPD, 97,000 LPD we have done. Last year, we have done 66,000 LPD. There's a jump of 46% in Kenyan procurement growth. Uganda we have done only procurement growth is in 19%. Majorly we have done good growth in Kenya.
Sir, what are the utilization levels here?
Kenya, now we are almost utilizing 80% utilization in Kenya because we have that installed capacity is only INR 1.5 lakh. Now we're already doing INR 1.1 lakh. Hardly we have another 20%-30% gap. In Uganda, because we are targeting yogurt there, we have grown yogurt also good quantity there, and that's why now we are planning for greenfield project. Uganda also is a full capacity actually.
Right. Sir, you mentioned realization increased from INR 58- INR 65. This realization is the blended realization INR 65 for Q1. From this, should we see further margin improvement in Q2 as a fallout of this?
I think the first price that you have seen will be there, as the seasonality comes in, procurement prices in Africa also increase in the second quarter. It will not be a continuous amount of the same, we will not lose profitability. Depending on monsoon, we'll taper down and then again bounce back.
Thank you. The next question comes from the line of Sucrit Patil with Eyesight Fintrade. Please go ahead.
Good morning to the team. My first question to Mr. B.V.K. Reddy is, beyond the regular outlook, what are the top two, three execution priorities you are focusing on in the next few quarters? Alongside that, what do you see as the biggest risk in consumer demand shifts or competitive pressures, and how are you preparing to manage them while still strengthening Dodla's position in the dairy products and value-added offerings? That's the first question. I'll have a second question after this. Thank you.
If you see overall Dodla Africa now, we don't have, we have towards edge only. Maybe normally, we do the better results in the first quarter and fourth quarter. Second and third quarter, slightly down margins. Whatever target, what we have taken a target budget, that we will 100% will achieve as far as Africa is concerned, volume as well as EBITDA. Feed also now we have done first quarter also, more than 25% growth. EBITDA levels also now slightly, there's a purchase price, raw material pressure is there, even then, feed also we are very confident. Budget numbers, both EBITDA and as well as volume, both we'll achieve. DDL India also now we have done lot of corrections, and milk we have done earlier in the month of April, May itself, we have done INR 1, more than INR 1 correction we have done.
Then we have already taken INR 2 correction. VAP, we have done INR 3-I NR 4 correction. There'll be always a pressure because I don't say there won't be any pressure. That clearly it is indicating that El Niño, the weather impact, because of that only is the issue. Otherwise, things would have been better. See, there's no much of inventory, that's why there's a pressure. That's all.
Price correction will be there?
Yeah.
No, sorry. Please, go ahead.
Yeah, that's what I said. Because of El Niño, because of the weather pattern, the procurement, and to see the anticipated level, it is not there. That's why there is a pressure, but we have already done a corrections.
Thank you. My second question to Mr. Murali is, from a financial point of view, what key risk or challenges do you anticipate in the coming quarter, and what specific measures are being taken to manage margins, cash flow, and balance sheet strength? Especially in areas like raw milk, procurement cost, receivables, and regulatory compliance? Thank you.
Basically, it more depends on how much you could able to pass it on the cost inflation to the consumer. It also depends on the planning of the inventory, the procurement and the sales, how the other competitors are playing in the field. These are the things which we need to have a capture. Okay. Based on that, we will plan overall the absolute amount we have to grow in the EBITDA percentage. That is one thing. With regard to the cash flow, we are a debt-free company. We have around INR 650 crore in the balance, we have to see where we get able to optimize the return on capital employed. That's where we are working towards. As of now, we are funding internal accruals for the OSAM, for the Africa, and as well as for the Maharashtra.
We don't have any major issues in the accounts receivable. Basically, it is a cash and carry business. Okay. Our average DSO is around one and a half day to two days. That is what we are doing. Payable, every 15 days, we'll pay to the farmers, all the transport and other payments, we'll do it on a monthly basis. We don't foresee any issues in the payables or the receivables. The inventory, based on the movement of the prices increase or decrease and global situation, we play the inventory game.
Thank you.
Hope I covered all the things.
The next question comes from the line of Hitaindra Pradhan with Maximal Capital. Please go ahead.
Yeah. Hi, sir. Hope I'm audible, and thanks for giving all this detail. Just had one question and wanted to get your perspective on the VAP portfolio, especially for curd and paneer. Sir, what happens to the pricing-
You are breaking up, sir.
Hello, sir. Is it better now?
Not. Go ahead, sir.
Yeah. Just had one question on the VAP portfolio. Sir, what happens to the pricing and the working capital situation on the VAP portfolio in this environment when the procurement is somewhat stretched? In terms of pricing, in terms of margin, and the working capital, if you can give us some color, what happens to the VAP portfolio? Thank you.
You're breaking up a little bit, so I'll repeat the question before I give the answer. One thing is you wanted to see what the VAP portfolio's impact based on the pricing of milk is going to be, and the second is regarding the inventory buildup that will happen in terms of the milk pricing. If that is the two questions, I'll answer accordingly, sir.
Yes.
Basically, the milk procurement prices and VAP transmission has already happened, and it has been done. Whatever was the milk procurement price to the VAP realizations, we have passed on the pricing to the consumer, and that will continue to be there. Majority, as you know, VAP will have a higher uptake during season and will come down during the off-season. I think during the off-season, as we go in and the procurement prices remain the same and VAP remains the same, the profitability in VAP will continue. Regarding inventory, we still have to wait and watch. I don't think we have insufficient inventory buildup happening for us on our own come for the next year. We might have to end up being a net buyer.
It will not affect our working capital as such because we have our limits, but we don't draw on our limits because we have internal accruals to the tune of INR 600 crore also post our capital expansion. If required, we dip into our own reserves for our working capital requirement, and I don't think we will need much of working capital requirement because the same scenario of milk actually evening out and not surging high or low. I think in the coming days, we might see that our own milk procurement, because we have built out our infrastructure also for a larger requirement for our new expansion that we are doing. I think we will not be having that much of an inventory buildup.
Okay. Thank you, sir.
The next question comes from the line of [Abhishek Kaneti] with Nivaka Ventures Private Limited. Please go ahead.
Hello, can you hear me?
Yes, Abhishek.
Yeah. Hi, sir. Thank you for the opportunity. Actually, I'm new to this company, so I'm just trying to understand. If we take three years down the line, how would our portfolio look like, in terms of how would you see Africa percentage of the revenue contribute to the revenue versus how would you think the VAP would change over the next three years? These both. Also Orgafeed.
Again, a little bit of breakup, Abhishek. I'm presuming you're saying how is the breakup going to be between the Africa revenue and India revenue in the next two to three years that you are anticipating?
Yes.
I think our Africa revenue will probably contribute around 10%, they will continue to be in the same trajectory of 10% in terms of maintaining it as because the larger pie is the Indian operation. Even a little bit of growth in Indian operation, Africa has to grow substantially large to compensate the Indian growth pie to become more in that. The 10% in comparison with India growth also means it's a reasonable growth in Africa. That is the reason we are expanding our capacities also in Africa as much as we are doing in India. I think we are growing in tandem with the capital allocation of the expected operational returns. It will be the same for the next two to three years unless we get some brand-new opportunities or acquisitions which are not there on the horizon, if something ever happens, it might change.
Currently, we maintain the same scenario. That is where it will be for us.
Sir, in the Indian dairy business, how do you see the VAP moving?
We normally target the same because of the base is increasing. We look at it as a 10% of volume, and inflation in India has always been around 4%-5%. That keeps adding. To maintain this 10% by volume is what we have invested in Maharashtra, and we have taken over OSAM as a larger scale expansion. Maybe one year or two years, we might drop to 7%-8%, or some years we might go to 10%-12% by volume. 10% by volume is what we target for.
Yeah. Thank you very much.
Will be around 70%-80%, and overseas is usually around 15%, also will be around 8%-10%. That is the dairy mix.
Thank you, sir. Thank you.
The next question comes from the line of Bhavesh Jain with DV Investment Advisors. Please go ahead.
Yeah. Am I audible?
Yes, sir.
Yeah. Just wanted to ask, India standalone business for the past four, five quarters has been on mid-single digit growth. Just wanted to understand and have your outlook on how do you expect growth from the core markets, and how much do you expect from the newer markets of, let's say, Bihar and Maharashtra?
I think our core markets will try to be maintaining our market share more consistently, sir, because our core markets like we explained, being, if you look at it from the Karnataka or Tamil Nadu side, the price differential between the cooperatives and us are already significant, and we don't want to keep pushing it further. That is why we do more of geographical expansion. It is also proportionate with the correction measures that will be taken by the cooperatives. If the cooperatives do take a significant large price corrections that had happened in the previous years, we will also be able to get more market share there and continue with our market share increase. Currently, it is because of the higher, we will not get a lot more entry into the HoReCa or the local shops because of the price differences.
We will try to maintain our market share. The Maharashtra will be predominantly a milk balancing procurement operation for us. We only have a 2 LLP kind of local market sales that we'll be looking at the local area. Similarly, I don't think OSAM will be growing at 100% kind of rate, because there also, there will be competition. That is the reason of the overall blend that we look at. We will look at a 10% growth in India by volume. The local areas being around maintaining market share would mean 5%-6%, newer territories would add more to that, and therefore we'll maintain 10%.
Got it. Thank you so much.
The next question comes from the line of Manish Jain with GormalOne LLP. Please go ahead.
Yeah. Hi. Wanted to congratulate you on the great work that you all have done on direct procurement. In fact, that is getting hidden in the numbers that you have shared. Especially the kind of market share gains that you all have done from leading competing dairy companies in the areas you are operating in. Really keen to understand how you all are managing to create a very powerful procurement in your areas in India. What is the share of direct farmer payment that you're doing?
Almost 100% that we do, sir. Maybe if there is some technical errors, it might be different, but otherwise, it's very insignificant. Otherwise, we can consider it almost as 100% direct farmer payment that we do. Regarding what you said as the strength, I think it is more of the human talent that we have to develop in terms of the number of people involved, because it's unique in its nature. It's like marketing in the front end of how do you create a brand or an operation. It is similar in the back end. To keep the team active, to keep the team more involved is where it goes. And I think in the days to come is also being ahead of the curve in terms of the new things that happen, right?
For example, if you look at direct procurement payment, we or another companies were one of the earlier leaders who went in early and then were able to convert it to all the farmers. I think every time when there is something new that comes, it is being aware and continuing to becoming better at that. I think qualitatively, we've also taken a significant large number of measures of MBRT to be improved. It's more an internal drive rather than external pressure. As long as that internal drive continues to be there and the team is well-focused and stays well, it will continue to grow.
The second question attached to this one is, have you seen decline in per animal productivity, which other dairies have also seen?
I think for us, per animal is a different data because we're not able to get significant data tracking animal-wise. It depends on regions and certain areas, the animal productivity increases, certain areas it might not. I think we will in the days to come, it is there. If you look at a farmer average, the farmer average has been increasing steadily. Over the past decade, it's moved up significantly to our farmer production. Animal data is very difficult to pinpoint and project, yes, we do hear some states that the per productivity of animal has gone up.
For certain things like the initiatives we are taking, when we are giving good quality feed, the farmers who are buying feed from, let's say, Dodla Dairy cattle feed, are doing around 14 liters per farmer as an average, which a non-Dodla feed consumer is only able to do around 11 liters per farmer average. I think these initiatives also help in terms of improving productivity.
Thank you. Ladies and gentlemen, we will take that as the last question for today. I would now like to hand the conference over to the management for the closing remarks.
Thank you everyone for joining us today on this earnings call. We appreciate your interest in Dodla Dairy. If you have any further queries, please contact SGA, our investor relation advisors. Thank you very much.
Thank you, sir.
Thank you all.
Thank you, sir. Ladies and gentlemen, on behalf of Dodla Dairy Limited, that concludes this conference call. Thank you for joining us. You may now disconnect your lines.