Dairy company Hatsun Agro Product delivered strong financial results for the September quarter, with net profit rising 5.61% to ₹116 crore compared to ₹110 crore in the same period last year. According to the latest unaudited financial results approved by the Board of Directors on October 22, 2026, revenue from operations surged 19.4% YoY to ₹2,898 crore from ₹2,427.59 crore year-on-year, demonstrating robust sales performance despite industry challenges. However, EBITDA margin declined significantly to 11.4% in Q2FY27 from 13.4% in the corresponding period last year, primarily due to a sharp 39.6% YoY increase in raw material costs to ₹2,050.69 crore from ₹1,469.25 crore. Total expenses grew faster than revenue at 20.4% YoY to ₹2,749.99 crore from ₹2,284.32 crore in the previous year, with EBITDA rising only 2% to ₹331 crore compared to the previous year's performance.
Chairman R G Chandramogan highlighted the company's resilience in challenging market conditions, stating they have maintained stronger EBITDA margins compared to the industry average despite facing geopolitical uncertainties, El Niño-related factors, and agricultural input cost inflation. As reported by CNBC TV18, the company sold 288 crore consumer packs over the past six months, averaging approximately 1.58 crore packs per day. The company is focusing on direct consumer relationships through its brands rather than relying on wholesale or bulk sales, building stronger consumer connections for sustainable growth. Despite margin pressures, the company maintained steady progress across the business supported by a strong farmer network and trusted brands, with demand for dairy products, cultured products and ice creams remaining encouraging according to the latest reports.
According to the company's statement reported by CNBC TV18, Hatsun Agro continues to strengthen its presence in existing markets while expanding into newer territories including Maharashtra and Odisha. The company's prominent consumer-facing brands include Arun, Ibaco, Arokya, Hatsun, HAP Daily, and Milky Moo. Chandramogan emphasized their continued investment in procurement, processing, and distribution capabilities to support this expansion strategy, with the company maintaining its focus on direct-to-consumer engagement through branded products. The company is also investing in procurement, processing and distribution to support this expansion strategy, with the management citing agricultural inflation and geopolitical challenges as key industry headwinds.
The company's strategic approach centers on direct consumer engagement through branded products, moving away from traditional wholesale distribution models. As reported by CNBC TV18, this direct-to-consumer strategy aims to build stronger consumer connections and drive sustainable growth. For the half-year period, revenue from operations reached ₹5,988.13 crore and PAT was ₹209.38 crore for the half year ended September 30, 2026. The company also declared an interim dividend of ₹10 per equity share for FY27, aggregating to ₹222.75 crore, reflecting its commitment to shareholder returns despite operational challenges. Finance costs declined to ₹30.98 crore from ₹37.53 crore year-on-year, indicating improved cost management in the financial segment. However, Hatsun Agro shares fell 5.55% to ₹1,072.90 on the National Stock Exchange on Thursday, reflecting investor concerns about margin pressures despite the company's strong revenue growth.
