Hatsun Agro Product Ltd. , a leading dairy company in India, witnessed a significant 9% surge in its share price following the announcement of robust quarterly results. The company's performance was marked by impressive margin expansion and solid revenue growth, driven by strong summer demand in the ice cream segment and contributions from its recent Milk Mantra acquisition.

Financial Highlights

• Revenue Growth: Hatsun Agro reported a 15.23% year-on-year increase in revenue, reaching ₹2,594.20 crore for the quarter.
• Gross Margin Expansion: The company achieved a multi-quarter high gross margin of 32.30%, up from 31.60% in the previous quarter.
• EBITDA Performance: EBITDA rose by 56.57% to ₹364.80 crore, reflecting the company's operational efficiency.
• Net Profit: The company's net profit showed a substantial increase, rising to ₹135.20 crore, marking a 214.42% growth compared to the same quarter last year.

Key Drivers of Growth

1. Summer Demand: The ice cream segment experienced strong demand during the summer season, contributing significantly to the revenue growth.
2. Milk Mantra Acquisition: The recent acquisition of Milk Mantra has started to positively impact the company's financial performance.
3. Price Increases: Hatsun Agro implemented retail milk price increases of ₹1.50 to ₹2.50 per litre, which helped boost revenue.
4. Value-Added Products: Higher sales of value-added products like ghee and butter contributed to the overall growth.

Margin Expansion

The company's gross margins expanded by 60-70 basis points, reaching 32.30%. This improvement can be attributed to:

• Effective cost management
• Increased sales of high-margin value-added products
• Operational efficiencies gained from the Milk Mantra acquisition

Operational Performance

Market Response

Despite the impressive quarterly results and the 9% surge in share price, Hatsun Agro's stock remains:

• 24% below its 52-week high
• Down 18% over the past year

This suggests that while investors have responded positively to the recent performance, there may still be room for potential growth in the stock's valuation.

Looking Ahead

Hatsun Agro's strong performance in Q1 demonstrates the company's resilience and ability to capitalize on seasonal demand and strategic acquisitions. The significant improvements in revenue, margins, and profitability indicate that the company's growth strategies are yielding positive results. As Hatsun Agro continues to integrate the Milk Mantra acquisition and focus on value-added products, investors will be watching closely to see if this upward trajectory can be maintained in the coming quarters.

Hatsun Agro Product Limited , a leading dairy company, has announced a series of significant developments, including a substantial interim dividend and robust financial results for the first quarter of the fiscal year 2025-26.

Interim Dividend Declaration

The Board of Directors of Hatsun Agro Product has declared an interim dividend of ₹6 per equity share, representing a 600% dividend on the face value of ₹1 per share. This marks the first interim dividend for the financial year 2025-26. The record date for dividend eligibility is set for July 24, 2025, with the payment to be made on or before August 16, 2025.

Q1 Financial Performance

For the quarter ended June 30, 2025, Hatsun Agro Product reported impressive financial results:

The company witnessed a year-on-year growth of 6.73% in revenue from operations, while profit after tax increased by 13.44% compared to the same quarter of the previous fiscal year.

Leadership Changes and Re-appointments

The Board has approved several key re-appointments:

1. Mr. C Sathyan (DIN: 00012439) has been re-appointed as an Executive Vice Chairman for a period of five years, effective from October 19, 2025, subject to shareholder approval at the upcoming Annual General Meeting (AGM).

2. Mr. K S Thanarajan (DIN: 00012285) has been re-appointed as a Non-Executive Non-Independent Director, liable to retire by rotation.

Annual General Meeting

The 40th Annual General Meeting of Hatsun Agro Product is scheduled for August 28, 2025, to be held through video conferencing or other audio-visual means. The cut-off date for determining shareholder eligibility to vote on resolutions is set for August 21, 2025.

Strategic Investments

The company has approved an investment in FPEL Daylight Private Limited to acquire equity shares for consuming solar energy under a Group Captive Consumption facility for its plant in Tamil Nadu. This move aligns with Hatsun's commitment to sustainable energy practices.

Corporate Governance

In a move to enhance corporate governance, the Board has approved the purchase of residential properties to provide accommodation for the company's directors.

Hatsun Agro Product continues to demonstrate strong financial performance and strategic decision-making, positioning itself for sustained growth in the dairy sector. The substantial interim dividend reflects the company's robust cash flow and commitment to shareholder returns.