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'm 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 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 financial year '27 was marked by a highest-ever quarterly revenue of ₹1,198 crores, 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 ₹65 crores, translating into an EBITDA margin of 5.4%, and PAT stood at ₹41 crores.

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 ₹415 crores, registering a 17.6% year-on-year growth, supported by a prolonged summer season compared to the earlier onset of monsoons in Q1 FY '26.

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 40.6% year-on-year. Africa business delivered another strong quarter, recording the highest-ever revenues of ₹154 crores, representing a solid growth of 45.6% year-on-year.

EBITDA also touched a record of ₹24 crores, increasing 74% year-on-year. We continue to maintain our market share of approximately 50% in Uganda long-life milk category and yogurt.

In Kenya, processing capacity continues to ramp up towards full utilization, while our current market shares remain modest at around 2% to 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 Orsam business, the integration continues to progress well following the acquisition.

Revenues for the quarter stood at ₹91 crores, 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 on this business.

Now 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 our due diligence 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 ₹11.65 crores for around 2% stake in Sid's Farm Private Limited. Sid's Farm is a premium dairy brand with a strong multiregional 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 for differentiated high-quality dairy brand.

With this brief, I now 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 you the quarter performance highlights of our business. Starting with our Dodla Dairy operations, 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 lakh liters per day, which is 13% year-on-year growth.

It reflects the strength of our operational team, direct procurement model, and longstanding farmer relationship. The average procurement cost Q1 FY '27 stood ₹41.3 per liter as against ₹41 per liter in the previous quarter and ₹37.4 per liter in the Q1 of FY '26.

However, we continued with our approach of gradually passing on the price to the consumers and avoided taking a lumpsum price hike. Our average milk sales price for the quarter stood at ₹59.4 per liter, which was ₹58.4 per liter in the previous quarter and ₹57.2 per liter in Q1 FY '26.

Therefore, our margin continues to remain under pressure for the quarter. To put the squeeze in context, the spread between our milk realization of ₹59.4 and the procurement cost of ₹41.3 narrowed ₹18.1 per liter from 19.8 a year ago, which largely explains the EBITDA margin decline from 8.2% to 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 cost like transportation, overheads, 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, Orsam 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, Orsam 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 '27 with marginal sequential improvement stood 10.5%.

Coming to product mix, our milk sales stood 13.6 lakh liters per day, an increase of 14.5% on year-on-year. During the quarter, we delivered highest-ever VAP sales number, ₹414.7 crores, as against ₹352.8 crores in a Q1 FY '26.

This was mainly due to a seasonal variation explained by our MD as well as improved contribution from our Orsam business. Curd and curd-based products reported healthy growth of 41.4% on year-on-year and stood at 642.6 million metric tons per day in terms of value, and curd sales grew by 44.9% on 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, and a very good morning to all the participants on the call. Talking about consolidated financial performance in Q1 FY '27, revenue from operations stood at ₹1,198 crores, the highest-ever quarterly revenue, registering a 19% year-on-year growth.

Gross profit for the quarter stood at ₹278 crores with a gross margin of 23.2% as against 25.8% in Q1 FY '26. Employee expenses for Q1 FY '27 stood at ₹56 crores, compared to ₹47 crores in the corresponding quarter last year.

The 18% year-on-year increase was primarily due to Orsam addition during this quarter and higher employee costs pertaining to the minimum wage criteria as per new labor laws. Other expenses for the quarter was ₹159 crores, compared to ₹130 crores in the corresponding quarter last year.

While other expenses remained broadly in line with revenue as a percentage of sales, 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 ₹65 crores with an EBITDA margin of 5.4%.

Depreciation expense increased to ₹23 crores in Q1 FY '27 from ₹18 crores in the corresponding quarter last year. Other income for the quarter stood at ₹14 crores.

Unlike previous few quarters, we don't have any tax credits in Q1 FY '27 related to any of the favorable income tax orders. Net profit for the quarter stood at ₹41 crores with a net profit margin of 3.4%.

On the balance sheet, we remain net debt-free with approximately ₹689 crores of cash and investment, which comfortably funds our ₹590 crores CapEx program along with the Orsam and Africa expansion without any leverage. Lastly, I would like to mention profitability includes purchase price allocation effects, brand amortization, and fair value adjustments.

Hence, the 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.

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 6 to 9 months and then also over the next 2 to 3 years?

Can you walk us through what are the triggers, what are the near-term and the mid-term triggers for improving this margins? Or do you perceive, given what has happened on the procurement side and on the pricing side, you think that margins have structurally reset downwards to some extent?

That is the first question. The second question was on allocation path Sid's Farms.

Just want to understand thought process behind that. Why that 2% why that very minor kind of a stake?

What is the thought process behind it? Third question was on growth.

If I look at the ex adjusted—

It is on handset. Is it better now?

The third question was on the procurement growth adjusted for Orsam. That seems, 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 were my three questions. Thank you.

Yeah.

Thanks a lot, Praveen. I'll answer the first two questions, and the third question regarding procurement growth in Orsam and Maharashtra, B.V.K.

will answer. Margin, the 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, because like we were saying earlier, we were assuming that with the onset of monsoons, the procurement prices will taper down, but now seeming to be that there's not much of an increase in procurement in terms of the flush 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 1 month of time that it consumes to pass on the prices. In the 2 to 3 years scenario that you 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 Orsam.

These are mostly seasonal corrections and not structural in nature, therefore we are very confident and in the 2 to 3 years will come, therefore it is not a reset of the margins, but more a seasonal correction that has been happening, that is the scenario. Now 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, because for example, we believe that for a consumption pattern to become a habit from a fad, it will take significantly long time, and therefore to test our theses and such other theses that we have, we normally try to go rather learning it with an other rather than trying to create on our own, and 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 of a farm. Regarding procurement growth, B.V.K.

sir will explain what is happening in Bihar and it's not only Maharashtra, but also I think we've grown in Karnataka as well, but B.V.K. will explain Bihar and other growth in procurement.

Yeah.

In Orsam, see, if you see last year procurement last year, see, we don't have right data because they used to use lot of powder and butter. Now, 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 we have done a lot of corrections. More than the procurement, we're 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, we have done a growth of, overall growth we have done 13%, we have done a growth of 10% in Maharashtra also, and then Africa, we have done roughly about 28% procurement growth, only procurement growth.

That's all from the procurement side.

Actually my question on procurement was that if I take out Orsam, adjusted for Orsam, the remaining unit, procurement grew 5.3%, right? When you are saying that Maharashtra grew around 10% and Africa grew 20-plus percent— No,

no, Maharashtra is a part of DDL overall, but overall we have grown by 13.5%.

No, no, I understand that. Orsam

almost it is flat, but Africa and India together, we have grown more than 13%.

No, no, I understand that, but—

India, we have grown only 3%.

Yes, standalone only 3%, Praveen.

No, no, I understand that. I'm saying that ex-Orsam, last year Q1 FY '26 did not have Orsam, right?

Then your procurement was around 18 18.7, correct? Around, right?

This year, if I take out—

I'll tell you the breakup, Praveen. Just give 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.

Then overseas from 1.96 to 2.52, that is 28.5% of growth. For HR Foods, last year we don't have it.

Now we have 1.39 LPD. The overall growth comes to 13%, Praveen.

No,

no, I understand that. I'm saying if from that 21.1, if I take out Orsam 1.

whatever 1.39,

1.39 minus, it gives

around 19.7, correct?

Exactly.

Right? That 19.7, I'm comparing it to the last year 18.7, right?

I'm saying that is a growth of 5.3%, which has mostly from Maharashtra and Africa, looks like, right? My question was that—

Mostly from Africa followed by Maharashtra, yeah. Yes.

Hence my question was that does it mean that the other geographies, like Karnataka, Andhra, and others, have they degrown during this time in terms of procurement?

It's not degrown, it's maintained the same, because 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 state in comparison with other states are lower or higher, we try to manage as a blend of all the states' 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 higher, and in certain areas where the pricing is more conducive to us because of 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.

Thanks for the response.

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 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?

Then second question on the balance sheet, we have seen there is a drastic increase in goodwill and intangibles of almost 250-odd crores. I guess it's related to Orsam 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 you had asked for, and I think the balance sheet, Murali will answer it.

Yes, sir. Go ahead, B.V.K.

Yes, Aniruddha. Now see, Africa, we have done whatever procurement hike was there, we compensated with the sales increase also.

That is number one. Orga also, what we have done, slightly already 70%, 80% raw material price increase versus sales price correction, we already done it.

Only Dodla also, we waited till July first 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 7% to 8% margin profile.

Yes.

With regard to the intangibles, basically from Orsam, we have ₹100 crores of goodwill is there, apart from that, around ₹150 crores of branding is there. Based on that, we have allocation impairment of whatever it is there, but 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

in the

impairment of assets, and like B.V.K. was saying, we expect that the worst is behind us in terms of the procurement prices coming to a sort of a stability.

I don't think they'll further increase dramatically. Marginal corrections might happen, but 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, and if yes, what will be the CapEx or the investment plans on that? That's it from my side.

Many many thanks.

Thank you, Aniruddha. Right now, we don't 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 at the peak summer seasons.

We are waiting to see how it pans out for us in the current year, and maybe such decisions will be made not currently, but hopefully in the future. Our growth has been from ₹16 crores to ₹22 crores in the first quarter itself.

I think once we see this year panning out, and then we'll make plans. Currently, we do not have any plans for major expansion.

Yeah. Thank you for the opportunity.

My first question was regarding the quantum of the price hikes. B.V.K.

sir mentioned we've done some corrections from July 15th onwards. If you could just mention the quantum over the ₹2 price hike we took last quarter, how much incremental price hike we've taken now?

I think

from the Q1 to 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%. I think currently we look at another around 2%, 2.5% correction in the prices in the ongoing quarters that we look at.

Effectively, at least current year, we should look at a 4%, 5%.

The 2.2% 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 on milk realization price we are talking, we're not the blended.

Yes, yes, yes.

Blended will be higher, ma'am, 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 the 8% to 10% in India's volume growth, and the price hikes will add to the value growth. That's what we look at.

Okay. There's no change on the 8% to 10% volume growth number despite the price hikes.

Yeah.

Got it. Great.

That's all from my side. Thank you.

Hi, sir. Am I audible?

Hi. My question is on pricing.

What are the price hikes taken by competitors in the region we are operating, and have we seen cooperatives taking price hikes in Tamil Nadu? For

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 all 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. Aavin, 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 back-end farmers, and it's getting delayed there.

Price hike.

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 ₹10 price gap, and in Karnataka, it might be ₹6, ₹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?

Basically,

in terms of absolute number, it will be around a ₹2 price increases that we have taken as a correction across.

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.

Basically, what we mean by normalization is whatever the price hikes that have taken will maintain the same. We 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—

Abhishek, basically the average is around ₹41. Now also it is running around ₹41.20, more or less.

See, last 2 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 ₹2 per liter milk, and VAP we have done ₹3 to ₹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 Africa standalone and Africa realizations, all for 1Q, please.

Yeah. Murali will give you those numbers of 1Q for the realization that we have.

The overall realization of the milk is per liter—

No, sir, overall consol, including milk and VAP and everything. Yeah.

Overall consol is 62.78 last year. Current year, it is 61.78, okay, because the bulk was there in the last year.

If you exclude the bulk, last year it is 59.82. Current year, it is 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 is current year quarter, last quarter it is only 498.

Right. Finally, for—

Fat products. Fat and—

Only butter and ghee.

Lastly, sir, for standalone and for Africa, what are the realizations?

I will give you. Standalone, see, Africa, even Kenya and Uganda, average realization ₹65.

Comparison with last quarter. Last quarter,

yeah, last quarter to this quarter now I'll give a comparison. Last period, if you see, Uganda, we were at 59.36, and this quarter, 55 65.31.

Similarly, even Kenya also, we were at 58, now we are 65.

Got it, sir. Finally for standalone?

Standalone, sir, overall, excluding the bulk product, is 59.99 to 61.36 for the India standalone, and overall, including fat products, it is 59.90 to 62.88. Including the bulk, it is 63.24 of last year to 62.88 of current year.

Yeah. Hello, am I audible?

Thank you for the opportunity and congrats on the strong growth in revenues. My first question actually is that if you look at VAP sales ex of bulk and curd, then the growth has been somewhat lower when compared to historical growth that you've seen.

Any particular reasons for that?

Basically, no, for us, the other VAPs considered to be is very much smaller, right? 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 ₹14 crores last quarter to ₹22 crores this quarter.

I think Murali will explain the specific numbers in VAP minus curd, 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, and the other VAP products, 35.62, and the fat and fat products which we reduced it, there is a degrowth of 46%, okay, in the consumer.

Apart from that, we have exited completely from the bulk sale, which was negative, that is around ₹57 crores which was there in the last quarter, we don't had done this. In curd

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, if we look at So 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'll 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 thus, I think we don't have much of bulk sales available for this year.

All right. Great.

Just final question here. Just wanted the curd sales in INR terms for the quarter.

Curd sales in INR terms for India, including all the curd products, Murali will give you the specific.

₹333.96 crores for the current quarter.

All right. Last year, it is ₹252 crores.

Yes. Thank you so much.

Sir. Thank you.

The first quarter consol revenue growth has been very good, right? Would you like to give some revenue guidance for the full financial year, consol 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 '26 versus FY '25, and also for the current quarter, which is Q1 of FY '27 versus Q1 of FY '26?

You want FY '25 whole year comparison and the current quarter comparison, ma'am?

Yes,

yes, correct. Yeah.

I think Murali will give you that in terms of the whole year and the current quarter. You can 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.

And— Only for the VAP, revenues, revenues. Standalone VAP revenues, yeah, for the said time period, yeah.

From ₹245 crores to ₹332 crores, excluding bulk.

Sorry, 300 and?

₹332.

32. 245 versus 332.

That's a 36% VAP growth in the standalone, right?

Yeah.

Okay. Got it.

For FY '26 versus FY '25, broadly you have the growth numbers?

Yeah. So ₹759 crores of last year to current year ₹842 crores.

These are excluding the ghee and butter of the either consumer or the bulk. I'm talking about pure VAP.

Yeah. Fermented products.

Consumer ghee, last year we had ₹81 crores, it is ₹106 crores current.

Hi, sir. Thanks for the opportunity.

Sir, if I look at your milk sales volumes, excluding Orsam, 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 been?

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 difference is increased 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 terms of 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 done around 10.4 lakh current quarter.

Last quarter, it is 10.25. There is a minor increase in a milk, like sir said that it is the basically of the summer.

With regard to the milk of overseas Africa, last year we done 1,61,000 as against we done current quarter 2,14,000, that is around 33% of growth was there in the milk itself.

Understood. Also, you had mentioned that competitors have taken price hikes in ghee and butter, but what about liquid milk?

What kind of price hikes have they taken versus us?

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 to earlier question. For example, Aavin is facing pressure of not taking the price hike, therefore not being able to pay on suppliers on time, and therefore they will be bound to increase the pressure, which is showing in terms of, then I think there was newspaper articles, I cannot confirm it, but certain the higher loss-making milk SKUs, they were not supplying, and they've withdrawn certain higher loss-making SKUs from the market.

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—

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

the

procurement volumes of Uganda and Kenya as well. Yeah.

Procurement volume in Uganda, Q1, see, 1,54,000 liters as against 1,29,000 of previous year. Take Kenya, and Kenya also, last year we have done procurement only Q1, see Q1 now 96,000, 97,000 we have done, and last year we have done 66,000.

There's a jump of 46% in Kenyan procurement growth. Uganda is we have done only procurement growth is a 19%.

Majorly we have done good growth in Kenya. Right.

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 1.5 lakhs, now we already doing 1.1 lakhs. Hardly we have another 20%, 30% gap.

In Uganda, because we are targeting yogurt there, we have grown yogurt also a 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 58 to 65.

This realization is the blended realization 65 for Q1? From this, should we see further margin improvement in Q2 as a fallout of this?

I think the first for the price that you're seeing will be there, but as a seasonality comes in, procurement prices in Africa also increase in the second quarter. It will not be a continuous amount of the same, but we will not lose profitability in the depending on monsoon, will taper down and then again bounce back.

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're focusing on in the next few quarters?

Alongside that, what do you see as the biggest risk in consumer demand shifts or competitive pressures? How are you preparing to manage them while still strengthening Dodla's position in the daily products and value-added offerings?

That's the first question. I have a second question after this.

Thank you. See,

if you see overall Dodla Africa, we have towards edge only. Maybe normally we do the better results in the first quarter and fourth quarter, slightly second and third quarter, slightly some margins, but 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, and EBITDA levels also now slightly our raw material pressure is there, but even then, feed also we are very confident. Budget numbers, both EBITDA and as well as volume, both will achieve.

DDL India also now we have done a lot of corrections. Milk, we have done earlier in the month of April, May itself, we have done ₹1 more than ₹1 correction we have done, and then we have already taken ₹2 correction, and VAP, we have done ₹3 to ₹4 correction.

There will be always a pressure, because I don't say there won't be any pressure, that clearly it is indicating that El Niño, weather impact, because of that only is the issue. Or otherwise, things would have been better.

See, there's no much of inventory, that's why there's a pressure, that's all. Otherwise, no

price correction will,

yeah.

That's what I said. Because of El Niño, because of the weather pattern, the procurement, anticipated level, it is not there, that's why there is a pressure, but we have already done 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 quarters? What specific measures are being taken to manage margins, cash flow, and balance sheet strength, especially in areas like raw milk procurement costs, receivables, and regulatory compliance?

Thank you. Yeah.

Basically, it is 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, and also 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 in absolute amount, we have to grow in the EBITDA percentage.

That is one thing. With regard to the cash flow, we are a net debt-free company.

We have around ₹650 crores in the balance, and we have to see where we get able to optimize the return on capital employed. That's where we are working towards.

Now, as of now, we are funding internal accruals for the Orsam, 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 1 and 1/2 day to 2 days, that's what we are doing.

Payables, every 15 days, we'll pay to the farmers, and 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 price increase or decrease and global situation, we play the inventory game.

Hope I covered all the things, yeah.

Yeah. Hi, sir.

Hope I'm audible, and thanks for giving all these details. 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—

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.

Yes, sir, you were breaking up a little bit, 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 build-up that will happen in terms of the milk pricing.

If that is the two questions, I'll answer accordingly, sir. 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 consumers, and that will continue to be there. Majority, VAP will have a higher offtake 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 sufficient inventory build-up 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 ₹600 crores also post our CapEx 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've built out our infrastructure also for a larger requirement for our new expansions that we are doing. I think we will not be having that much of an inventory build-up.

Okay. Thank you, sir.

Thank you.

Hello, can you hear me?

Yes, Abhishek.

Yeah. Hi, sir.

Thank you for the opportunity. Actually, I'm new to this company.

I'm just trying to understand. If we take 3 years down the line, how would our portfolio look like in terms of how do you see Africa percentage of the revenues contribute to the revenue versus how do you think the VAP would change over the next 3 years?

These both. Also like agro feed.

Again, it was a little bit of a break up, Abhishek. I'm presuming you're saying, how is the breakup going to be between the Africa revenue and India revenue in the next 2 to 3 years that you are anticipating.

I think our Africa revenue will probably contribute around 10%, and 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 was 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're growing in tandem with the capital allocation of the expected operational returns. We will do the same for the next 2 to 3 years unless we get some brand new opportunities of acquisitions which are not there on the horizon, but it's something that happens, it might change.

Currently, to maintain the same scenario. That is where it will be for us.

Sir, and in the Indian dairy business, how do you see the VAP moving?

We normally target the same. Because the base is increasing, we look at it as a 10% of volume, and inflation in India has always been around 4% to 5%, that keeps adding.

To maintain this 10% by volume is what we have invested in Maharashtra, and we have taken over Orsam as a larger-scale expansion. Maybe one one year or 2 years, we might drop to 7%, 8% or some years you might go to 10%, 12% by volume, but 10% by volume is what we target for.

Yeah. Just to add, India

will be around 70% to 80%, and overseas will be around 15%, Orsam will be around 8% to 10%. That is the dairy mix.

Thank you, sir. Thank you.

Thank you, sir. Thank you.

Am I audible?

Yes, sir.

Yeah. Just wanted to ask India's standalone business for the past 4, 5 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 growth 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, and 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 we did 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. Maharashtra will be predominantly our milk balancing procurement operation for us.

We only have a 2 lakh liter kind of a local market sales that we'll be looking at the local area. Similarly, I don't think Orsam will be growing at 100% kind of rates because there also there will be competition.

That's the reason of the overall blend that we look at. We will look at it 10% growth in India by volume.

The local areas being around maintaining market share would mean 5% to 6%, newer territories would add more to that, and therefore we'll maintain 10%.

Got it. Thank you so much.

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. Specially 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 are some technical errors, it might be different, but otherwise it's very insignificant.

Otherwise, it's all 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 unique in its nature, it's like marketing in the front end, 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. 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 payments, 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, and 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? Sir,

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 is being increasing steadily over the past decade, it's moved up significantly for farmer production.

Animal data is very difficult to pinpoint and project, but yes, we do hear some states that the per-productivity of animal has gone up, and for certain things like initiatives we have taken when we're 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 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 Relations advisors. Thank you very much.

Thank you all.