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Hatsun Agro Product Posts 1.5% PAT Decline Amid 19% Revenue Surge in Q1 FY27
When Hatsun Agro Product Ltd (HAP) released its Q1 FY27 earnings on Tuesday, investors braced for a modest dip in profit amid a strong surge in sales.
The Chennai‑based dairy maker reported a 1.5 % year‑on‑year decline in profit after tax (PAT), falling to ₹133 crore from ₹135 crore a year earlier. The loss of ₹2 crore was largely blamed on a sharp rise in material costs, even as revenue from operations jumped 19 % to ₹3,093 crore, up from ₹2,251 crore in the same quarter of FY25.
Revenue growth was driven by robust sales of HAP’s flagship brands—Arun Icecreams, Arokya, Hatsun, Milky Moo, HAP Daily and Ibaco—through a network of more than 42,000 retail and distribution outlets. The company operates 22 manufacturing plants across six states. Chairman R. G. Chandramogan said, "Hatsun enters FY27 with strong momentum, driven by the enduring equity of our flagship brands, a resilient business model, and sharp operational focus."
Material costs surged 37 % to ₹2,156 crore from ₹1,570 crore a year earlier, largely due to higher prices for milk and other raw inputs. The cost increase offset the higher sales volume, leading to the slight PAT decline. HAP highlighted its cost‑control measures—hedging and supply‑chain optimization—in the filing, emphasizing that it remains focused on operational efficiency.
On the market side, HAP shares closed at ₹928.50 on the National Stock Exchange, down ₹1.95 (0.21 %) from the previous day’s close. The modest decline follows the earnings announcement and reflects investors’ assessment of the cost‑inflation impact on margins. The broader dairy sector is also feeling the squeeze, with milk procurement prices rising 8 % year‑on‑year, according to industry data.
Hatsun Agro Product has been a key player in India’s private‑sector dairy industry for more than five decades. Founded in 1970 by R. G. Chandramogan, the company has grown through organic expansion and acquisitions, including the 2025 purchase of Milk Mantra for ₹233 crore. Its product portfolio spans milk, curd, ice cream and dairy ingredients, and it exports dairy ingredients to overseas markets.
The company’s latest results come as the broader Indian dairy industry faces rising input costs and fluctuating milk prices. Analysts note that while revenue growth remains robust, margin compression is a concern for many players in the sector.
Hatsun Agro Product’s current financial position shows a slight dip in PAT but a healthy revenue trajectory. The company will report its Q2 FY27 results in the coming months, and investors will be watching for guidance on cost management and margin recovery. The next board meeting, scheduled for 21 July 2026, will include a review of the quarterly results and a discussion of strategic initiatives. The company’s share price will also be influenced by upcoming earnings releases, board decisions, and any regulatory updates affecting the dairy sector. Analysts expect the company to maintain its focus on operational efficiency to offset the cost pressures.
The Chennai‑based dairy maker reported a 1.5 % year‑on‑year decline in profit after tax (PAT), falling to ₹133 crore from ₹135 crore a year earlier. The loss of ₹2 crore was largely blamed on a sharp rise in material costs, even as revenue from operations jumped 19 % to ₹3,093 crore, up from ₹2,251 crore in the same quarter of FY25.
Revenue growth was driven by robust sales of HAP’s flagship brands—Arun Icecreams, Arokya, Hatsun, Milky Moo, HAP Daily and Ibaco—through a network of more than 42,000 retail and distribution outlets. The company operates 22 manufacturing plants across six states. Chairman R. G. Chandramogan said, "Hatsun enters FY27 with strong momentum, driven by the enduring equity of our flagship brands, a resilient business model, and sharp operational focus."
Material costs surged 37 % to ₹2,156 crore from ₹1,570 crore a year earlier, largely due to higher prices for milk and other raw inputs. The cost increase offset the higher sales volume, leading to the slight PAT decline. HAP highlighted its cost‑control measures—hedging and supply‑chain optimization—in the filing, emphasizing that it remains focused on operational efficiency.
On the market side, HAP shares closed at ₹928.50 on the National Stock Exchange, down ₹1.95 (0.21 %) from the previous day’s close. The modest decline follows the earnings announcement and reflects investors’ assessment of the cost‑inflation impact on margins. The broader dairy sector is also feeling the squeeze, with milk procurement prices rising 8 % year‑on‑year, according to industry data.
Hatsun Agro Product has been a key player in India’s private‑sector dairy industry for more than five decades. Founded in 1970 by R. G. Chandramogan, the company has grown through organic expansion and acquisitions, including the 2025 purchase of Milk Mantra for ₹233 crore. Its product portfolio spans milk, curd, ice cream and dairy ingredients, and it exports dairy ingredients to overseas markets.
The company’s latest results come as the broader Indian dairy industry faces rising input costs and fluctuating milk prices. Analysts note that while revenue growth remains robust, margin compression is a concern for many players in the sector.
Hatsun Agro Product’s current financial position shows a slight dip in PAT but a healthy revenue trajectory. The company will report its Q2 FY27 results in the coming months, and investors will be watching for guidance on cost management and margin recovery. The next board meeting, scheduled for 21 July 2026, will include a review of the quarterly results and a discussion of strategic initiatives. The company’s share price will also be influenced by upcoming earnings releases, board decisions, and any regulatory updates affecting the dairy sector. Analysts expect the company to maintain its focus on operational efficiency to offset the cost pressures.
