Hatsun Agro Product Limited Earnings Summary — Q3 FY2026
Hatsun Agro Reports Decline in Quarterly Profits Amid Softening Operating Margins
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 2.6% sequentially in Q3 FY2026.
- Revenue of ₹2,364 Cr is 17.6% higher year-on-year.
- Revenue has compounded at 171.3% annualised over the last 10 quarters.
- Net profit of ₹61 Cr is 48.0% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 216.9% annualised across the period.
- Operating margin stands at 10.8% in Q3 FY2026.
- Operating margin expanded by 15 bps year-on-year.
- Over the last two years operating margin has expanded by 511 bps.
- PBT margin is 3.3%.
- Expense growth of 17.4% remained below revenue growth of 17.6%.
- Operating profit of ₹256 Cr is 19.3% higher year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 66/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 | Q2 FY2010 | Q1 FY2010 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Volatile | 2,364 | 2,428 | 2,590 | 2,243 | 2,010 | 2,072 | 2,375 | 2,047 | 283 | 250 |
| Expenses | Volatile | 2,108 | 2,103 | 2,229 | 2,018 | 1,796 | 1,831 | 2,045 | 1,817 | 267 | 234 |
| Operating Profit | Volatile | 256 | 325 | 361 | 224 | 214 | 241 | 330 | 230 | 16 | 17 |
| Operating Margin | Improving | 10.8% | 13.4% | 13.9% | 10.0% | 10.7% | 11.6% | 13.9% | 11.2% | 5.7% | 6.7% |
| Other Income | Volatile | 3 | 4 | 4 | 9 | 2 | 7 | 2 | 2 | 1 | 1 |
| Interest | Volatile | 33 | 38 | 43 | 48 | 43 | 45 | 46 | 50 | 6 | 5 |
| Depreciation | Volatile | 146 | 144 | 137 | 127 | 117 | 116 | 111 | 111 | 6 | 5 |
| Profit Before Tax | Volatile | 79 | 148 | 184 | 59 | 56 | 88 | 176 | 71 | 5 | 7 |
| Tax | Volatile | 18 | 38 | 49 | 16 | 15 | 23 | 45 | 19 | -0 | 3 |
| Net Profit | Volatile | 61 | 110 | 135 | 43 | 41 | 64 | 131 | 52 | 5 | 5 |
| Net Margin | Volatile | 2.6% | 4.5% | 5.2% | 1.9% | 2.0% | 3.1% | 5.5% | 2.5% | 1.8% | 1.8% |
Key Takeaways
- Revenue grew 17.6% YoY to ₹2,364 Crores, though it saw a minor sequential dip of 2.6%.
- Net Profit experienced a significant sequential contraction, falling from ₹110 Crores in Q2 to ₹61 Crores in Q3.
- Operating Profit Margin (OPM) returned to 11%, down from the 13-14% highs seen earlier in the fiscal year.
- Interest expenses have trended downwards significantly, falling to ₹33 Crores from ₹43 Crores YoY, aiding the bottom line.
- Depreciation charges continue to rise, hitting ₹146 Crores as the company maintains a heavy fixed-asset base.
- Borrowings have been significantly reduced to ₹2,011 Crores by Sep 2025 from ₹2,698 Crores in Mar 2024.
- The company maintains a high promoter holding of 73.17%, providing stability in governance.
- Working capital management shows improvement with inventory days falling from 94 to 60 over the last fiscal year.
Management Guidance
Management remains focused on transitioning from commoditized milk sales to high-value consumer brands like Ibaco and Arun Icecreams, with a continued emphasis on debt reduction and digital transformation in procurement.
Sentiment Shift
Stable
While quarterly profits dipped sequentially, the YoY revenue growth and aggressive debt reduction provide a stable long-term outlook.
Outlook
The outlook remains cautiously optimistic as the company benefits from significant operating leverage and a strong direct-farmer procurement model, though it must navigate raw milk price volatility and high depreciation costs.
From the Annual Report (Key Quotes)
“Hatsun has successfully evolved from a local ice cream player into a diversified dairy powerhouse.”
“The recent focus on debt reduction and working capital optimization marks a significant shift in its financial maturity.”
“Management has shown resilience in navigating volatile raw milk prices and regulatory shifts.”
Official Quarterly Documents
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This summary is AI-generated from Hatsun Agro Product Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.