This Small-Cap Dairy Stock Unveils Rs 1,000 Crore FY27 Capex Plan; Targets Rs 12,000 Crore Revenue, Check Details

On Wednesday, Indian equity benchmark indices traded largely flat, with the benchmark Nifty 50 index slipping 8.90 points, or 0.04 per cent, to 24,606.00. Amid the market movement, Hatsun Agro Product share price rose 1.44 per cent to Rs 904.20 after the company informed the exchanges about a BusinessLine Interview in which its Chairman outlined the company's expansion plans, including a Rs 1,000 crore capital expenditure programme for FY27.

Hatsun Agro Rs 1,000 Crore Capex Planned for FY27

According to the interview, Hatsun Agro Product, India's largest private-sector dairy company, plans to invest around Rs 1,000 crore during FY27. The proposed capital expenditure will primarily be utilised to expand the company's milk procurement and distribution network, modernise and revamp production facilities, and strengthen its marketing initiatives.

Chairman R G Chandramogan said the investment forms part of the company's long-term strategy to increase daily sales from the current 1.84 crore product packs to around 2.4 crore product packs per day over the next two years.

Hatsun Agro Targets Rs 12,000 Crore Revenue in FY27

The company reported revenue of Rs 9,959 crore in FY26, representing a 14.5 per cent increase over the previous financial year. Commenting on the current business momentum, Chandramogan said Hatsun has already achieved around 19 per cent growth in Q1 FY27 and expects annual revenue to approach Rs 12,000 crore if the growth trajectory is sustained during the remainder of the financial year.

Hatsun Agro Product Focus on Margins Despite Higher Input Costs

Despite inflationary pressures across the dairy industry, the company said it has been able to maintain relatively better margins because of its integrated business model. Chandramogan explained that Hatsun operates without intermediaries in both procurement and distribution, relying instead on its own outlets and franchise network. This structure, combined with the company's strong brand portfolio, has helped protect profitability.

He also noted that milk procurement prices have increased by around 13 per cent year-on-year, driven by adverse weather conditions, higher cattle feed costs and rising milk fat prices. Instead of immediately passing on the higher costs to consumers, the company delayed price hikes, preferring to wait for input costs to stabilise before revising prices.
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New Products and Retail Expansion

As part of its product expansion strategy, Hatsun plans to launch a range of protein-rich beverages within the next one to two months. The company is also working on introducing new ice cream variants and chocolate products to strengthen its portfolio.

On the retail front, Hatsun currently operates around 4,100 HAP Daily outlets and 220 Ibaco premium ice cream stores. The company plans to increase its HAP Daily network to more than 5,000 outlets by the end of FY27, further strengthening its distribution reach across the country.

About Hatsun Agro Product

Hatsun Agro Product Ltd is India's largest private-sector dairy company and markets products under brands including Arokya, Arun Icecreams, Hatsun, Ibaco, Aniva and HAP Daily. The company operates an integrated dairy business spanning milk procurement, processing, manufacturing, distribution and retail across India.

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Disclaimer: The article is for informational purposes only and not investment advice.