Hatsun Agro targets 50% revenue growth as milk procurement expands

Hatsun Agro Product expects revenue to reach about ₹120bn in the current financial year, compared with ₹100bn in the previous year, chairman RG Chandramogan told Reuters. For the following financial year, the company has set a revenue target of between ₹140bn and ₹150bn. Hatsun sells Arokya milk and Arun ice cream and is among India’s major private dairy companies.

The company reported revenue of ₹99.59bn for the financial year ended in March 2026, 14.5% higher than a year earlier. It has started selling milk in Mumbai and Pune and is expanding procurement operations in Odisha as it seeks to build a presence outside its established southern markets.

Hatsun operates about 13,000 milk-collection centres. Rather than concentrating mainly on new plants, it plans to strengthen existing facilities and collect more milk through its current network. Daily procurement is currently about 4.3m litres, with a target of 5m litres next year.

The company plans to spend ₹10bn during the current financial year and had already invested about ₹3bn-₹4bn. Roughly one-third of the planned expenditure is earmarked for milk procurement. The balance will be allocated to manufacturing capacity, marketing and distribution.

Milk prices have risen by 20-22% over the past 15 months, according to Chandramogan, as milk-fat and animal-feed costs increased. He expects milk supply to exceed demand within eight to ten months. Hatsun’s procurement costs and the ability to pass them on to consumers are being considered alongside its revenue targets.

The company said demand has remained resilient in rural and urban markets despite inflation. Ice cream sales during the relevant season, as well as curd and other everyday dairy products, have supported its business. Hatsun’s expansion includes liquid milk and value-added dairy products, with procurement involving farmers, collection centres, transport operators and processing facilities.