Hatsun Agro Share Price Jumps 9% After Strong Q1; Gross Margins Hit Multi-Quarter High

Market Performance

Shares of Hatsun Agro Product Ltd. witnessed a significant upswing of 9% on July 21, following the announcement of its Q1 FY26 results. The rally reflects investor confidence fueled by solid earnings and margin performance.

• The stock surged 9% intraday
• Despite the rise, it's still 24% below its 52-week high
• On a year-over-year basis, the stock is down nearly 18%

Main News

Hatsun Agro's Q1 FY26 results revealed impressive performance metrics, largely supported by strong demand in the summer-driven ice cream segment and strategic price adjustments. The recent acquisition of Milk Mantra has further bolstered consolidated performance, contributing to overall growth.

A major highlight from the quarter was the gross margin, which climbed to a multi-quarter high of 32.3%, up from 30% in Q4 FY25.

Gross Margin Trend

Here's a breakdown of Hatsun Agro’s gross margins over the past few quarters:

• Q4 FY24: 30.7%
• Q1 FY25: 31.6%
• Q2 FY25: 30.5%
• Q3 FY25: 30.0%
• Q4 FY25: 30.0%
• Q1 FY26: 32.3% ✅ (Multi-quarter high)

This sustained improvement in margins reflects strategic cost control and a favorable product mix.

Revenue

• Revenue Growth (YoY): 9% in Q1 FY26
• The company benefited from increased summer demand, particularly in the ice cream category

EBITDA

• EBITDA grew 9% YoY, mirroring the rise in revenue
• Margin performance was supported by milk price hikes and a higher share of value-added products

EBITDA Margins

• Margins improved by 60–70 basis points
• Retail milk price adjustments by ₹1.5 to ₹2.5/litre helped offset increased procurement costs
• Value-added products like ghee and butter played a key role in enhancing profitability

Net Profit

• Net profit growth was modest compared to other metrics
• Factors impacting profits:
  • Higher depreciation
  • Costs related to the Milk Mantra acquisition

Company Details

Hatsun Agro Product Ltd. is a prominent player in India's dairy industry, known for its popular brands in milk, ice cream, ghee, and butter. The company’s expansion strategy includes acquiring and integrating regional dairy brands, such as the recent addition of Milk Mantra, into its operations.

By shifting focus towards value-added dairy segments, Hatsun aims to improve both profitability and product reach.

Summary of the Article

• Hatsun Agro share price jumped 9% post Q1 FY26 earnings
• Gross margin hit 32.3%, the highest in several quarters
• Revenue and EBITDA rose 9% YoY, backed by summer demand and price hikes
• Value-added products contributed significantly to margin growth
• Despite the rally, the stock is still down 18% YoY and 24% below its 52-week high
• Net profits saw modest growth due to acquisition-related costs