Synopsis: Hatsun Agro Products reported stable revenue growth in Q4 FY26, supported by strong demand across dairy and value-added product segments. However, profitability came under pressure due to rising operational costs and lower margins during the quarter.
Hatsun Agro Products Limited is one of India’s leading dairy and food products companies, known for popular brands across milk, curd, ice cream, and dairy beverages. The company has built a strong distribution network across South India and continues to expand its presence in value-added dairy products. In Q4 FY26, the company reported steady revenue growth while announcing an interim dividend for shareholders.
Hatsun Agro Products currently commands a market capitalization of Rs. 20,560 crore, with the stock trading at Rs. 923 down by 2.20% compared to its previous close of Rs. 944. The stock touched a 52-week high of Rs. 1,179 and a low of Rs. 731. The company trades at a P/E ratio of 57.7, while ROCE and ROE stand at 15.3 percent and 19.4 percent respectively. Hatsun Agro also offers a dividend yield of 1.08 percent.
Hatsun Agro Products reported revenue of Rs. 2,578 crore in Q4 FY26, compared to Rs. 2,364 crore in Q3 FY26, registering a sequential growth of 9 percent. On a year-on-year basis, revenue increased by 15 percent from Rs. 2,243 crore reported in Q4 FY25. The growth in topline was primarily driven by higher demand for dairy products, improved distribution reach, and continued traction in value-added product categories.
Operating profit stood at Rs. 235 crore during Q4 FY26, compared to Rs. 256 crore in Q3 FY26, reflecting a sequential decline of 8.2 percent. Compared to Rs. 224 crore reported in Q4 FY25, operating profit increased marginally by 4.9 percent year-on-year. The pressure on operating performance was mainly due to higher input costs and increased operational expenses during the quarter.
Profit before tax came in at Rs. 60 crore during the quarter, compared to Rs. 79 crore in Q3 FY26, witnessing a sequential decline of 24 percent. On a yearly basis, profit before tax remained slightly higher than Rs. 59 crore reported in Q4 FY25.
Net profit stood at Rs. 51 crore in Q4 FY26, compared to Rs. 61 crore in Q3 FY26, reflecting a decline of 16.4 percent sequentially. Compared to Rs. 43 crore reported in Q4 FY25, net profit increased by 18.6 percent year-on-year.
The company declared an interim dividend of Rs. 10 per equity share, representing 1000 percent on the fully paid-up equity shares having a face value of Re.1 per share. This marks the first interim dividend declared by the Board for the financial year 2026-27.
Industry Outlook
India’s food processing and dairy industry continues to witness strong long-term growth supported by rising rural consumption, increasing disposable income, and growing demand for packaged and value-added dairy products. India’s milk production increased from 230.58 million tonnes in 2022-23 to 239.30 million tonnes in 2023-24, registering a growth of 3.78 percent.
The Indian food processing market reached US$ 354.5 billion in FY24 and is expected to touch US$ 535 billion by FY26. Additionally, Indian dairy firms are projected to grow 11-13 percent in FY26, driven by premiumisation, expanding distribution networks, and rising consumption trends across urban and rural markets.
Hatsun Agro Products delivered healthy revenue growth in Q4 FY26, supported by strong demand across its dairy portfolio. While profitability and margins witnessed pressure due to higher operating costs, the company continued to maintain stable business momentum. The announcement of a Rs. 10 interim dividend also reflects management’s confidence in the company’s long-term growth prospects and cash flow strength.
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