Hatsun Agro revenue up 19%, profit flat as dairy margins tighten
Revenue rose to ₹3,090.49 cr but PAT held at ₹133.69 cr as raw material costs ate gains. Board reappoints top management, pays ₹10 interim dividend.
— 1 earlier story on Hatsun Agro Product Ltd. →What's new
- Revenue up 19% to ₹3,090.49 cr, but PAT flat at ₹133.69 cr.
- Raw material and employee costs squeezed margins; dairy sector pressure persists.
- Board reappointed chairman R.G. Chandramogan and MD J. Shanmuga Priyan, subject to AGM.
Why this matters
The 19% top-line growth confirms Hatsun's distribution strength, but the flat profit shows the sector's chronic problem: milk procurement costs rise faster than branded dairy prices. Until Hatsun can either pass on costs or improve operational efficiency, the high P/E of 58x leaves little room for error.
What we're watching
- Whether management signals price hikes on the next concall.
- If revenue growth sustains above 15% in coming quarters.
- Shareholder approval for top management reappointment at AGM on 25 Sep.
The full read
Hatsun Agro’s revenue jumped 19% to ₹3,090.49 crore in Q1 FY27. Profit after tax stayed flat at ₹133.69 crore. The gap is raw material and employee costs, the same squeeze that plagues every dairy company when milk procurement outpaces retail price adjustments. The board reappointed chairman R.G. Chandramogan and MD J. Shanmuga Priyan — routine items, but governance matters when margins are thin. An interim dividend of ₹10 per share was paid. The numbers confirm Hatsun’s distribution strength but do nothing to close the margin hole. With a P/E of 58x, the market is already pricing in margin recovery. This quarter didn’t deliver it.
Questions answered
- What drove the 19% revenue growth?
- Revenue increased to ₹3,090.49 crore from ₹2,590.28 crore a year ago, driven by volume growth and possibly price increases, though the filing does not break down the drivers.
- Why was profit nearly unchanged despite significant revenue growth?
- Higher raw material costs and employee expenses consumed the additional revenue. Profit after tax was ₹133.69 crore against ₹135.19 crore last year, reflecting typical dairy margin pressure.
- What is the interim dividend announced?
- The board paid an interim dividend of ₹10 per share during the quarter. It was approved earlier and is separate from the final dividend.
- Why are the chairman and MD re-appointments subject to shareholder approval?
- Regulatory requirements mandate shareholder approval at the annual general meeting for key managerial appointments. The AGM is scheduled for 25 September.
- How does this quarter compare to the previous year?
- Revenue grew 19% year-on-year, but PAT was essentially flat, a stark contrast to the 18% PAT growth in the prior trailing twelve months as per screener data.
- What is the outlook for raw material costs?
- The filing does not provide forward guidance, but the dairy sector typically faces seasonal fluctuations in milk procurement costs. The flat profit suggests sustained pressure.
Hatsun Agro Product Ltd.
Latest quarter · Dec 2025
Strength & growth
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All notes on HATSUN →- 21 Jul 2026 · 5:20 PM IST Hatsun Agro revenue up 19%, profit flat as dairy margins tighten
- 7d ago Hatsun Agro revenue climbs 19% but profits stay flat in Q1