Hatsun Agro: ₹3,000 cr quarter, but profit went flat

Hatsun Agro Product Limited (NSE: HATSUN) crossed ₹3,000 crore in quarterly revenue for the first time in Q1 FY27. Net profit fell 1.1% to ₹133.7 crore. The stock is near ₹1,183. What happened Revenue from operations rose 19.3% to ₹3,090 crore. EBITDA reached ₹353.6 crore, though margin contracted. EPS dipped to ₹6.00 from ₹6.07 a year ago. The company sold 153 crore packs. A ₹10 interim dividend was declared. FY27 capex is ₹1,000 crore, targeting ₹12,000 crore of revenue and over 5,000 outlets. Why it matters Hatsun is India's largest private dairy processor under brands including Arokya, Arun Icecreams and Ibaco. The push into ice cream, yoghurt and value-added dairy drives the re-rating story. Arun Icecreams debuted at the New York India Day Parade in August, signalling a US push. My view The milestone is real. The margin contraction is the concern. Revenue grew 19%, but procurement costs paid to farmers and logistics rose faster, squeezing the margin. This is the structural challenge. Milk is a commodity input whose price rises with fodder costs and falls with surplus. When procurement costs rise, Hatsun cannot pass them fully without losing volume. Margin defence depends on selling more value-added products, which take time. At 69 times trailing earnings and 11 times book, it trades like a premium FMCG business. The question is whether ice cream and curd grow fast enough to justify that. What I am watching Q2 FY27 results in October, EBITDA margin recovering above 11.5%, and the US export traction with Arun Icecreams. On the chart, ₹855 is the 52-week low and ₹1,350 is resistance. My stance: Hold. Accumulate near ₹1,050. Do not chase. Disclosure: I do not hold a position in Hatsun Agro Product Limited at the time of writing. This is not investment advice.