Hatsun Agro sees revenue rising as much as 50% in two years

what happened

Hatsun Agro Product could increase revenue by as much as 50% over the next two financial years, Chairman RG Chandramogan told Reuters. The maker of Arokya milk and Arun ice cream expects sales of about 120 billion rupees ($1.25 billion) in the current financial year, compared with 100 billion rupees a year earlier. For the year after that, it projects revenue of 140 billion rupees to 150 billion rupees.

The outlook comes as rising milk-collection expenses pressure industry margins and fierce competition limits producers’ ability to raise prices. Milk prices have climbed 20%-22% over the past 15 months, driven by more expensive milk fat and animal feed. Chandramogan said he expects supply to overtake demand within 8 to 10 months.

Hatsun’s revenue rose 14.5% to 99.59 billion rupees in the year ended March 2026. The company is moving beyond southern India, supplying milk in Mumbai and Pune while increasing procurement in Odisha. It has earmarked 10 billion rupees for investment in the current fiscal year and has already deployed 3 billion-4 billion rupees. Roughly one-third will support procurement expansion, with the balance allocated to factories, marketing and distribution.

The company is enlarging existing sites rather than constructing new plants and extending its 13,000-point collection network. It aims to lift daily milk procurement from about 4.3 million litres now to 5 million litres next year. Chandramogan said demand remains steady in rural and urban markets, helped by sales of seasonal products such as ice cream and curd. ($1 = 95.7150 Indian rupees)

why it matters

For markets, Hatsun’s expansion plans are set against higher input costs and limited pricing power. Procurement capacity, capital spending and demand for dairy products are the main operating factors highlighted by the company.

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