India's organised dairy industry is increasingly moving beyond traditional milk, curd and paneer as companies expand into value-added dairy products, modern retail, e-commerce and quick commerce.
A recent analysis of Milky Mist, Hatsun Agro Product and Dodla Dairy highlights how the three companies are pursuing growth through different combinations of value-added products, retail networks, supply-chain expansion and geographic diversification.
Milky Mist Sees Strong Growth in Yoghurt and Ice Cream
Milky Mist recorded Q1 FY27 revenue of ₹973.45 crore, up 43.56% year-on-year, while EBITDA increased 74.50% to ₹144.89 crore.
The company's value-added categories have been expanding rapidly. Yoghurt revenue increased 153% year-on-year, from ₹33.44 crore in Q1 FY26 to ₹84.52 crore in Q1 FY27, while ice cream revenue grew 60%.
Although traditional categories continue to grow, their share of revenue has declined as newer categories have expanded faster. Curd revenue increased 27% year-on-year, while cheese and paneer revenue grew 38% and 34%, respectively.
Milky Mist has also seen a significant change in its sales mix. The share of general-trade revenue declined from 44.53% in FY24 to 37.69% in FY26, while e-commerce increased from 7.51% to 13.70% during the same period.
The shift is supported by improvements in cold-chain logistics and the increasing reach of quick-commerce platforms.
Hatsun Expands Retail and Value-Added Dairy
Hatsun Agro Product reported quarterly revenue of ₹3,093.38 crore, compared with ₹2,594.20 crore in the year-ago period. However, profit after tax declined slightly to ₹133.69 crore from ₹135.19 crore, with higher milk prices putting pressure on margins.
The company is expanding its HAP Daily retail network, which has more than 4,000 outlets. The format provides consumers with access to a broad range of Hatsun products while also creating an additional distribution and retail touchpoint.
Hatsun is also increasing its presence in ice cream, yoghurt and other value-added categories while looking to expand beyond its established South Indian markets.
Dodla Faces Higher Procurement Costs
Dodla Dairy recorded 19% year-on-year revenue growth to ₹1,197.9 crore in the latest quarter. However, higher milk procurement costs affected profitability.
The company's milk procurement price increased 10.4% year-on-year, from ₹37.40 per litre to ₹41.30 per litre. In comparison, its milk realisation price increased 3.9%, from ₹57.20 to ₹59.40 per litre.
As a result, EBITDA declined 21.3% to ₹64.9 crore, while PAT fell 35.4% to ₹40.6 crore. EBITDA margin declined from 8.2% to 5.4%, and PAT margin from 6.2% to 3.4%.
At the same time, Dodla is increasing its focus on value-added products. Curd sales grew 42.07% year-on-year, reaching 642.6 metric tonnes per day compared with 452.3 MTPD a year earlier.
Value-added product sales reached ₹414.7 crore, up from ₹351.6 crore, with VAP contribution at 34.6% of the company's business.
Organised Dairy Gains Importance
The developments across the three companies point to a broader shift within India's dairy market: growth is increasingly coming not only from higher milk volumes but also from processing, branding, product diversification and stronger distribution networks.
The transition toward organised dairy is also visible in categories such as paneer. Parag Milk Foods, for example, has announced a ₹100-crore investment to increase paneer capacity from 20 MT/day to 80 MT/day, citing a shift in demand toward organised branded products.
For dairy companies, the combination of rising milk procurement costs and changing consumer preferences is making value-added products increasingly important. Yoghurt, ice cream, curd, paneer, cheese and other processed products can provide companies with additional avenues for growth beyond the traditional liquid-milk business.
The growing role of e-commerce, quick commerce, modern retail and company-owned retail networks is also reshaping how dairy brands reach consumers.
The broader industry trend suggests that India's organised dairy market is evolving from a predominantly milk-led model toward a more diversified value-added dairy ecosystem, where processing capabilities, cold-chain infrastructure, branding and distribution increasingly influence growth.
Source: Dairynews7x7 1 Oct, 2026 Read full story here
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