Hatsun Agro targets revenue growth of up to 50% over two financial years in India

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Hatsun Agro revenue growth target

Highlights

Hatsun Agro Product projects revenue of about 120 billion rupees this year and 140–150 billion rupees next year, up from 100 billion rupees last year.
Hatsun targets daily milk procurement of 5 million litres next year versus 4.3 million litres, supported by a 10 billion rupee investment focused on procurement, capacity, and distribution.
Milk prices have risen 20–22% in 15 months due to higher milk-fat and feed costs, squeezing industry margins while strong demand sustains Hatsun's expansion beyond southern India.

Expansion plan and revenue outlook

As reported by Reuters, Hatsun Agro Product expects revenue to reach about 120 billion rupees this financial year, up from 100 billion rupees last year, and then rise to between 140 billion rupees and 150 billion rupees in the following year, Chairman RG Chandramogan said.

The maker of Arokya milk and Arun icecreams is widening its reach beyond its southern Indian base, selling milk in Mumbai and Pune and ramping up procurement in Odisha. Hatsun, which reported a 14.5% rise in revenue to 99.59 billion rupees in the year ended March 2026, is also targeting daily milk procurement of 5 million litres next year, up from roughly 4.3 million litres currently.

The company plans to invest 10 billion rupees this fiscal year and has already spent 3 billion rupees to 4 billion rupees. About one-third of that investment is set to go toward expanding milk procurement, with the rest divided between manufacturing capacity and marketing and distribution.

Rather than build new plants, Hatsun is expanding existing facilities and its 13,000-strong collection network as it prepares for higher volumes.

Cost pressures and dairy demand trends

The company's growth forecast comes even as higher milk procurement costs are squeezing industry margins and strong competition is limiting producers' ability to raise prices.

Milk prices have increased 20% to 22% over the past 15 months because of higher milk-fat and animal-feed costs, Chandramogan said. He added that he expects milk supply to exceed demand within eight to 10 months.

Even with inflationary pressure, demand has remained resilient across rural and urban markets, supported by strong sales of summer staples such as ice cream and curd. That resilience is helping support Hatsun's expansion strategy as it seeks a wider footprint in India's dairy market.

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