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 to Rs 3,090.49 cr, but operating profit fell 5.29% as expenses rose 26.57%.
- Operating margin recovered 2.22 percentage points sequentially to 11.35%, but remained 3.26 percentage points below Q1FY26.
- The stock fell 4.62% by the fifth session after results, broadly in line with its 4.99% median absolute move after the past eight results.
Price around the results
Revenue growth returned, but the year-on-year margin gap remains
Standalone revenue rose 21.92% year on year and 19.90% sequentially to Rs 3,090.49 cr. Sequentially, revenue grew faster than expenses, lifting operating margin by 2.22 percentage points to 11.35%. The margin had declined from 14.61% in Q1FY26 to 9.13% in Q4FY26, so the latest quarter marks a recovery but remains below the year-ago level.
Faster cost growth and depreciation weighed on profit
Year-on-year expenses grew 26.57%, ahead of revenue growth, narrowing operating margin by 3.26 percentage points and reducing operating profit by 5.29%. Depreciation also increased 17.29%, although interest expense fell 26.97%. The lower tax rate, down 4.77 percentage points year on year, cushioned the decline in net profit, while other income contributed only 1.69% of pre-tax profit and was not a material profit driver.
Hatsun lagged peers and the post-result decline was typical
Hatsun's 11.35% operating margin was 4.79 percentage points below the 16.14% median among 32 FMCG peers that had reported the same quarter, placing it ninth from the bottom. The stock fell 3.87% on the first session and 4.62% by the fifth session after the results, despite rising after five of its past eight result announcements. The latest decline was close to its historical 4.99% median absolute move, rather than an unusual reaction.
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 | ₹2,740 cr | ₹2,342 cr | +16.97% | +26.57% |
| Operating profit | ₹351 cr | ₹235 cr | +49.05% | -5.29% |
| Operating margin (%) | 11.35% | 9.13% | — | — |
| 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% |
Operating margin of 11.35% compares with a Fast Moving Consumer Goods sector median of 16.14% across 32 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -3.87% | -3.07% |
| Next session | -5.70% | — |
| 5 sessions | -4.62% | -4.88% |
Volume on the results session was 2.65× its 20-day average.
What to watch
- Whether operating margin holds above 11.35% after the sequential recovery of 2.22 percentage points.
- Whether expenses continue to grow faster than revenue, as they did by 26.57% versus 21.92% year on year.
- Whether the tax rate remains near 21.67% without providing the same year-on-year support to net profit.