Hatsun's margin recovers sequentially but remains sharply below last year
Revenue grew 21.92% year on year, but costs rose faster; the stock fell 5.70% by the session after the results.
Filed 21 Jul 2026, 17:29 IST · after market close · Hatsun Agro Product Ltd (HATSUN)
Key takeaways
- Standalone revenue grew 21.92% year on year, but expenses rose 35.12%, cutting operating margin by 9.04 percentage points to 7.53%.
- Operating margin recovered 2.10 percentage points sequentially after falling for three straight quarters, but remained below Q1FY26's 16.57%.
- The stock fell 3.87% in the first session and 5.70% by the next session, against a 4.99% median absolute move after the last eight results.
Price around the results
Revenue growth did not translate into operating profit
Standalone revenue grew 21.92% year on year and 19.90% sequentially, but operating profit fell 44.56% from Q1FY26. Sequentially, revenue grew faster than expenses, helping operating profit rise 66.39%.
Margin recovered from Q4FY26, but the annual gap remains wide
This followed three consecutive quarterly declines, from 16.57% in Q1FY26 to 5.43% in Q4FY26. Year on year, the margin was still down 9.04 percentage points. Interest expense fell 26.97% year on year, while depreciation rose 17.29%, so lower financing costs did not offset the operating pressure.
Lower tax rate softened the decline in net profit
The tax rate fell 4.77 percentage points year on year to 21.67%, cushioning the fall in profit before tax and net profit. Other income contributed only 1.69% of profit before tax, so it was not a material source of earnings support. Net profit nevertheless declined 9.72% year on year.
The market reaction was negative but within the stock's usual range
The stock fell 3.87% in the first session after the standalone results were filed after market close, with volume at 2.65 times the reference level. The decline extended to 5.70% by the next session. The first-session move was smaller than the 4.99% median absolute reaction across the last eight results, during which the stock rose five times and fell three times.
Q1FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,090 cr | ₹2,578 cr | +19.90% | +21.92% |
| Other income | ₹3 cr | ₹3 cr | +12.02% | -12.69% |
| Expenses | ₹2,858 cr | ₹2,438 cr | +17.23% | +35.12% |
| Operating profit | ₹233 cr | ₹140 cr | +66.39% | -44.56% |
| Operating margin (%) | 7.53% | 5.43% | — | — |
| Interest | ₹32 cr | ₹32 cr | -1.98% | -26.97% |
| Depreciation | ₹151 cr | ₹146 cr | +3.74% | +17.29% |
| Profit before tax | ₹171 cr | ₹60 cr | +185.56% | -15.22% |
| Tax | ₹37 cr | ₹9 cr | +316.55% | -30.51% |
| Net profit | ₹134 cr | ₹51 cr | +162.70% | -9.72% |
| EPS (₹) | ₹6.00 | ₹2.28 | +163.16% | -9.77% |
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -3.87% | -3.07% |
| Next session | -5.70% | — |
Volume on the results session was 2.65× its 20-day average.
What to watch
- Whether standalone operating margin holds above 7.53% after the sequential recovery.
- Whether expense growth remains below revenue growth after the year-on-year gap of 35.12% versus 21.92%.
- Whether the tax rate stays near 21.67% rather than returning to the 26.44% level seen a year earlier.