Hatsun Agro Product Ltd shares hit the 20% upper circuit after reporting a 71.9% year-on-year rise in net profit to ₹110 crore for Q2 FY26, compared with ₹64 crore in the same quarter last year. The company’s consolidated revenue grew 17% YoY to ₹2,428 crore, driven by strong performance across its core dairy portfolio — milk, curd, and ice cream — alongside operational efficiencies and the integration of its Milk Mantra acquisition. Hatsun has guided for 15% revenue growth in FY26, supported by new protein-based product launches and benefits from recent dairy tax reforms.
In contrast, Heritage Foods Ltd posted a more modest performance, with revenue up 9.1% YoY to ₹1,112.5 crore and net profit growing 5% YoY to ₹50.99 crore in Q2 FY26. The company cited higher milk procurement and logistics costs as key margin pressures. Despite challenges, Heritage reaffirmed its focus on expanding value-added products such as paneer and ghee and strengthening its integrated supply chain.
Parag Milk Foods Ltd reported Q2 revenue of ₹871.31 crore, up 15% YoY, and a net profit of ₹29.21 crore, reflecting a 7% YoY increase. The company continues to strengthen its value-added product mix under brands like Go Cheese and Pride of Cows. Meanwhile, Dodla Dairy Ltd, for the quarter ended June 2025, posted total income of ₹1,023.79 crore, up 11.5% YoY, and a PAT of ₹62.87 crore, with detailed Q2 FY26 numbers yet to be released.
The results highlight a growing divergence in India’s dairy sector performance. Hatsun’s strong margin expansion shows the payoff from operational scale and acquisitions, while Heritage’s limited profit growth underscores ongoing cost pressures. The sector is clearly shifting focus from milk volumes to value-added and health-oriented dairy offerings, where companies like Hatsun are moving ahead of the curve through innovation and efficiency.
Industry experts see these results as a blueprint for future growth — combining scale with product innovation, cost-effective processing, and deeper distribution networks. As India’s organized dairy sector matures, profitability will increasingly depend on premiumisation, functional nutrition, and technology-driven process efficiency, rather than commodity milk sales alone.
Source : Dairynews7x7 Oct 28th 2025