Hatsun Agro Q2 Profit Jumps 70% YoY to ₹109.5 Crore; Stock Rises Almost 20%

Chennai, October 27, 2025: Hatsun Agro Product Ltd stock price (NSE: HATSUN)  surged almost 20% in Monday morning trade. This surge was reported after a sharp 70.3% year-on-year surge in consolidated net profit to ₹109.54 crore for the quarter ended September 30, 2025 (Q2 FY26), compared to ₹64.32 crore in the same period last year. The strong quarterly results, driven by healthy revenue growth and stable operating margins, sent the company’s shares soaring nearly 13.8% to ₹1,027.95 on the NSE as of 11:46 a.m.

Financial Performance Overview

Operating revenue increased 17.1% YoY at ₹2,427.59 crore due to increased demand for dairy and value-added offerings. Total income increased 17% at ₹2,431.85 crore, and expenses improved by 14.7% at ₹2,284.32 crore. Profit before tax increased 68.6% to ₹147.53 crore, and profit after tax also increased 70.3% to ₹109.54 crore. Earnings per share (EPS) was at ₹4.92 compared to ₹2.89 in the same quarter last year.

During the first half of FY26 (April–September 2025), consolidated revenue of Hatsun Agro stood at ₹5,017.87 crore, an increase of 12.8% YoY, while net profit grew 25.6% to ₹244.73 crore from ₹194.86 crore during H1 FY25.

Cost Management and Operational Efficiency

Material cost of consumption went up marginally by ₹1,469.25 crore from ₹1,444.83 crore a year ago on account of increased milk procurement prices. Employee expenses also went up to ₹73.92 crore, while depreciation charges went up to ₹144.17 crore. This notwithstanding, a decline in finance costs to ₹37.53 crore from ₹44.70 crore contributed to improved profitability. Improved operating leverage and increased sales volumes despite cost pressures drove the bottom line.

Market Reaction and Valuation

As of 12:53 PM IST on October 27, the stock was trading at ₹1,081.80, surging by ₹178.25 or 19.73% for the day with a market capitalization of ₹23,062.24 crore and a free-float market cap of ₹5,451.28 crore. The stock’s 52-week range is ₹859.55–₹1,200.00, with an adjusted P/E ratio of 71, indicating high investor optimism.

Management Commentary and Outlook

The firm reaffirmed its plans to increase its dairy product portfolio, enhance procurement of milk in rural areas, and enhance supply chain efficiencies in South India. The management anticipates that input cost pressures will ease in the next few quarters, contributing to margin expansion in the second half of FY26.

REF: https://nsearchives.nseindia.com/corporate/HATSUN_27102025114310_Boardoutcome.pdf

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