Operational volumes achieved historic milestones across key business categories. Average daily milk procurement grew 13% year-over-year to a record 21.1 lakh litres per day (LLPD), while milk sales expanded 14.5% to 13.6 LLPD. Value-added products generated ₹414.7 crore—representing 34.6% of overall revenue—driven primarily by record curd volumes, which jumped 41.4% to reach 642.6 metric tonnes per day (MTPD) alongside elevated demand for ice cream, buttermilk, lassi, and paneer.

Profitability metrics experienced severe compression across the board due to a narrowing price spread. Average raw milk procurement prices rose 10.4% year-over-year to ₹41.3 per litre, whereas average retail realization increased by only 3.9% to ₹59.4 per litre. This reduced the critical margin spread from ₹19.8 to ₹18.1 per litre. Combined with a 48% jump in packaging material expenses and higher employee overheads, the company’s EBITDA margin contracted to 5.4% from 8.2% in Q1 FY26.

In strategic developments, Dodla Dairy acquired a 2% stake in D2C organic dairy brand Sids Farm for ₹11.65 crore, aiming to expand its footprint in the premium milk and curd segment. Concurrently, the processor deliberately avoided bulk commodity sales of skimmed milk powder (SMP) and butter—which contributed ₹57.7 crore in Q1 FY26—to build inventory reserves and reallocate raw milk pools toward higher-margin consumer packs.