RG Chandramogan, Chairman of Hatsun Agro Product , has made a compelling case for reducing the Goods and Services Tax (GST) on dairy products, arguing that such a move could significantly transform India's dairy industry and position the country as a global dairy export leader.

GST Reduction Proposal

Chandramogan proposed a uniform 5% GST rate on all dairy products, including ice cream, to replace the current multi-tier structure of 5%, 12%, and 18%. He specifically advocated for reducing the GST on dairy products from 12% to 5%, stating that this change could empower farmers, spur demand, and enhance India's export potential in the dairy sector.

Current Export Scenario

The Hatsun Agro chairman highlighted the stark contrast between India's milk production and its dairy exports:

• India produces 240 million tonnes of milk annually
• However, it exports only one million tonnes
• In comparison, New Zealand exports 20 million tonnes, representing 35% of global dairy trade

Chandramogan attributed this significant export gap primarily to heavy taxation, particularly the 12% GST on products like ghee.

Anticipated Benefits of GST Reduction

The proposed GST reduction is expected to yield several benefits:

1. Better consumer prices
2. Higher earnings for farmers
3. Increased export potential

Future Outlook

Expressing optimism about Prime Minister Modi's announcement regarding next-generation GST reforms expected by Diwali, Chandramogan predicted:

• The second half of FY26 could show improvement
• The following year could be "glorious" for the industry

Trade Negotiations and Competition

Regarding international trade, Chandramogan:

• Expressed doubt about US dairy products entering the Indian market, citing differences in feeding practices and consumer preferences
• Identified New Zealand as a more significant competitive threat in the global dairy market

Stock Performance

Hatsun Agro shares closed 0.27% lower at ₹910.00 on the NSE.

Recent Company Update

According to a recent corporate filing, Hatsun Agro Product Limited announced that Mr. R G Chandramogan, Chairman of the Company, gave an interview to NDTV Profit on August 21, 2025. The company has made the video link of this interview available on their website at https://www.hap.in/video.php , in compliance with SEBI regulations. The transcript of the interview is expected to be available by August 27, 2025.

This recent media appearance by the Chairman underscores the company's commitment to transparent communication with its stakeholders and highlights the ongoing discussions about the dairy industry's future in India.

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.