Despite the strong top-line momentum, net profit (profit after tax) finished virtually flat at ₹133.69 crore compared to ₹135 crore recorded in Q1 FY26. The slight dip in profitability reflects elevated operational and input expenses, particularly higher procurement costs paid to dairy farmers and increased logistical overheads across regional distribution channels. However, robust consumer volume growth across cold-chain categories helped maintain operating stability throughout the peak summer season.

Chairman R.G. Chandramogan attributed the record sales trajectory to HAP’s diversified product portfolio and well-established retail network. Flagship consumer brands—including Arokya (fluid milk), Hatsun (curd, butter, and ghee), and Ibaco alongside Arun Icecreams—delivered steady volume gains across key south Indian markets and expansion territories. The company’s continued investment in direct-to-consumer distribution points and exclusive brand outlets ensured stable product availability during peak summer demand.

A critical competitive advantage underpinning HAP’s operational scale is its direct farmgate procurement model. The company procures 100% of its raw milk directly from over 300,000 dairy farmers without relying on third-party middlemen. By expanding its network of over 3,100 village-level collection centers across Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, and Maharashtra, HAP has secured reliable raw milk volumes while supporting farmer profitability through sustainable feed initiatives, such as high-yielding hybrid Napier green fodder.