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Dodla Dairy Hikes Prices Amid Rising Costs
27 Jul
Summary
- Dodla Dairy raises milk prices due to persistent higher procurement costs.
- Company targets 15% value growth and 10% volume growth for FY27.
- Major expansion planned with a new Maharashtra plant by March 2027.
Hyderabad-based Dodla Dairy is raising milk prices due to higher-than-anticipated procurement costs. The company anticipates 15% value growth and 10% volume growth for the financial year 2026-27 (FY27), along with EBITDA margins of 7-8%.
Initially delaying price increases, Dodla Dairy has now started passing on costs to consumers, with further corrections planned for July and August 2026. This action is necessary as milk arrivals remained lower than expected, influenced by factors like the El Niño effect.
Significant expansion efforts are underway, including a new 10 lakh-litre-per-day plant in Maharashtra, expected to begin partial production by March 2027. This plant has the potential to generate ₹2,000 crore-₹2,500 crore in annual revenue long-term.
Acquisitions, such as OSAM, and the Maharashtra plant expansion are projected to add ₹800 crore-₹1,000 crore in revenue over the next two to three years. The company has a market capitalization of ₹6,232.77 crore, though its stock has seen a 19% decline over the past year.
