Hatsun Agro posts record Q1 revenue, but profit slips as margins contract

Hatsun Agro’s Q1 revenue rose 19.3% year-on-year to ₹3,090 crore, while net profit edged down 1.1% to ₹133.6 crore. EBITDA fell 5.1% and margin contracted 300 basis points to 11.3%, despite sales of 153 crore consumer packs across more than 4,700 outlets.

— Source publishedTue, 21 Jul, 2026, 18:36 IST·First seen Tue, 21 Jul, 2026, 18:46 IST·Source CNBC-TV18 · Companies

What happened

Hatsun Agro Product · Hatsun Agro reported record Q1 revenue above ₹3,000 crore, but profit and EBITDA declined as margin contracted. The dairy company sold 153

Key facts

  • Net profit ₹133.6 crore, down 1.1% YoY from ₹135.1 crore
  • Revenue ₹3,090 crore, up 19.3% YoY from ₹2,590 crore
  • EBITDA ₹350.5 crore, down 5.1% YoY from ₹369.4 crore
  • EBITDA margin 11.3%, versus 14.3%
  • 153 crore consumer packs sold
  • 22 manufacturing facilities across six states
  • More than 4,700 exclusive retail and distribution outlets
  • Interim dividend ₹10 per share; total payout ₹222.75 crore
  • NSE closing share price ₹928.50, down 0.21%

Why this matters

Hatsun’s reach across 4,700-plus outlets and high consumer-pack volumes make it a scaled dairy platform, though any strategic valuation should account for contracting profitability.

What to watch

  • Quarterly milk procurement-price trend and farm-gate milk availability.
  • EBITDA margin stabilization or further decline versus the 11.3% Q1 level.
  • Evidence of price hikes, realization growth and consumer-pack volume response.
  • Share of value-added dairy and ice cream in sales mix.
  • Gross-margin movement relative to revenue growth and distribution-expansion costs.
  • Competitive pricing actions by major organized dairy peers.
  • Monsoon, fodder-cost and seasonal milk-supply developments.
  • Prioritize selective price increases and pack-size/grammage actions in liquid milk and value-added dairy where brand elasticity is strongest.
  • Increase mix toward ice cream, curd, yogurt, cheese and other value-added products to reduce dependence on lower-margin milk volumes.
  • Tighten procurement, cold-chain, distribution and promotional spending to restore operating leverage without slowing outlet expansion.
  • Use the 4,700-plus outlet network and consumer-pack scale to push higher-margin cross-selling and improve route-level profitability.
  • Communicate a clear margin-recovery timeline, separating temporary procurement pressure from structural costs.