Hatsun Agro Product Sets Ambitious Revenue Growth Targets for FY2028

Revenue projections target Rs 15,000 crore by FY2028, supported by an immediate Rs 1,000 crore capex plan.

Reader Takeaway: Strong revenue guidance signals aggressive expansion, though rising procurement costs remain a key margin pressure point.

What just happened

Hatsun Agro Product has announced a strategic growth roadmap aiming to achieve a turnover of Rs 15,000 crore within the next two fiscal years. The company projects revenue to hit Rs 12,000 crore in the current fiscal year, followed by an increase to Rs 14,000-15,000 crore in the subsequent year. This growth is underpinned by an aggressive Rs 1,000 crore capital expenditure plan for FY2027.

Why this matters

The company is scaling its operations to move beyond its traditional stronghold in South India. By targeting markets like Mumbai and Pune and ramping up procurement in Odisha, Hatsun aims to build national scale. The plan to increase daily milk procurement from 4.3 million litres to 5 million litres is central to meeting this heightened demand.

Strategy and Capex

The company is prioritizing efficiency over new greenfield projects. Approximately one-third of the Rs 1,000 crore capex is dedicated to strengthening the milk procurement network, while the balance is allocated to upgrading manufacturing capacity, marketing, and distribution networks. The existing 13,000-strong collection network will be the primary driver for this scale-up.

Risks to watch

Management highlighted that milk prices have increased by 20%-22% over the last 15 months, largely driven by elevated animal feed and milk-fat costs. While consumer demand for core products like ice cream and curd remains resilient, investors should track whether the company can maintain healthy margins while navigating this inflationary environment. Management expects the supply-demand gap to normalize within the next 8 to 10 months.

What to track next

Key metrics for investors to monitor include the successful penetration into Western India and the actual realization of the procurement growth targets. Margin stability in the face of ongoing commodity price volatility will be critical to the realization of the projected revenue targets.