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Hatsun Agro Q3 Profit Plunges 45% QoQ Despite Strong Annual Growth

Hatsun Agro Product reported a sharp 44.7% sequential decline in consolidated net profit for Q3 FY26, falling to Rs 60.58 crore from Rs 109.54 crore in the previous quarter. However, on a year-on-year basis, the profit showed robust growth of 48% from Rs 40.94 crore in Q3 FY25. The company's total income increased by 17.6% YoY to Rs 2,366.68 crore, though it saw a marginal sequential dip. Chairman R G Chandramogan attributed the company's performance to expanded distribution, capacity additions, and sustained brand investments, supported by strong demand across core dairy categories.

Key Points: Hatsun Agro Q3 Net Profit Falls 45% Sequentially

  • Q3 net profit down 45% sequentially
  • Yearly net profit up 48%
  • Total income rose 18% YoY
  • Growth driven by wider distribution & capacity
  • Strong demand in milk, yoghurt, ice cream
2 min read

Hatsun Agro Product's Q3 net profit falls 45 pc sequentially

Hatsun Agro's Q3 FY26 net profit fell 45% QoQ to Rs 60.58 crore, though yearly profit jumped 48%. Income rose 18% YoY.

"Our growth is driven by distribution reach, capacity additions, and sustained investments in sales and brand building - R G Chandramogan"

Mumbai, Jan 19

Hatsun Agro Product on Monday reported a 44.69 per cent quarter-on-quarter drop in net profit during the December quarter of the 2025-26 financial year.

The dairy major reported a consolidated net profit of Rs 60.58 crore for the third quarter (Q3), which was down from Rs 109.54 crore recorded in the previous quarter (Q2 FY26), according to its stock exchange filing.

However, on a yearly basis, net profit jumped 48 per cent from Rs 40.94 crore in the same quarter of the last financial year (Q3 FY25), supported by higher sales.

The company's total income during the quarter rose 17.62 per cent year-on-year to Rs 2,366.68 crore, compared with Rs 2,012 crore in the year-ago period.

On a sequential basis, total income declined 2.67 per cent from Rs 2,431.85 crore reported in the September quarter.

Expenses during the quarter increased to Rs 2,287.76 crore, compared with Rs 1,956.33 crore in the corresponding period last financial year.

Commenting on the performance, Hatsun Agro Product Chairman R G Chandramogan said the company's growth was driven by wider distribution reach, capacity additions, and continued investments in sales and brand building.

"We continued to strengthen our core dairy portfolio while expanding our presence across priority markets," he added.

"Our growth is driven by distribution reach, capacity additions, and sustained investments in sales and brand building, enabling us to scale our brands with clarity and purpose," Chandramogan added.

According to the company, strong consumer demand supported volume growth across milk, yoghurt, and ice cream categories. Innovation-led dairy products, aligned with changing consumer preferences, also saw encouraging traction during the quarter.

"A strong focus on efficiency across the value chain, from farmer engagement to last-mile distribution, has helped the company maintain product quality and freshness," the dairy major stated.

The company procures milk directly from over 4 lakh farmers and sells its products under popular brands such as Arun Icecreams, Arokya Milk, ibaco, Santosa, and Milky Moo.

- IANS

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Reader Comments

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Priya S
The yearly profit is still up 48%! That's the bigger picture. Quarterly fluctuations happen, especially in agri-business. Supporting 4 lakh farmers is a huge social impact. We should focus on the long-term health of the company and its rural partnerships. 👍
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Arun Y
Arun Icecreams is a family favourite! 🍦 Good to see they are investing in brand building and innovation. Maybe the Q3 dip is due to seasonal factors? Milk procurement costs might have been high. Hope they maintain quality while managing prices for us consumers.
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Sarah B
Interesting case study. Revenue is up YoY but profit down QoQ. This often points to increased competitive spending or input cost inflation. The direct farmer linkage is their key strength, but it also makes them vulnerable to raw material price swings.
K
Karthik V
The chairman's statement sounds a bit generic. "Distribution reach, capacity additions..." – every company says that. I'd like more transparency on what specifically caused the sequential drop and the plan to fix it. Respectfully, the communication could be better.
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Meera T
Arokya milk is a staple in our home. Trust their quality. If their costs are up because they are paying farmers better, I don't mind a slight price increase. Supporting ethical dairy practices is important. Hope they continue their focus on freshness from farm to home.

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