FMCG Stock Jumps After NCLT Approves Merger with Milk Mantra

Synopsis: Shares of Hatsun Agro Product were in focus after the National Company Law Tribunal approved the merger of Milk Mantra Dairy with the company. The move aims to streamline the corporate structure and enhance operational efficiencies, as the dairy major integrates the operations of its wholly owned subsidiary.

Hatsun Agro Product has attracted investors’ attention, as the National Company Law Tribunal, Cuttack Bench, has sanctioned the scheme of amalgamation of Milk Mantra Dairy Private Limited with the company. The order was passed by the tribunal on March 10, 2026, marking a significant step towards consolidating the group’s dairy business. Milk Mantra, a wholly owned subsidiary of Hatsun Agro, is proposed to be merged with the parent company.

With a market cap of Rs 20,715 crore, the shares of Hatsun Agro Product Ltd jumped about 2% in today’s trading session and reached a high of Rs 934.50. When compared to its previous day’s closing price of Rs 917.85. The shares are trading at a PE of 53.8, whereas the industry’s PE is at 26.

About the merger 

Shares in Hatsun Agro may continue to be in focus, as the scheme of amalgamation between Milk Mantra Dairy Private Limited and Hatsun Agro Products Limited has been approved by the National Company Law Tribunal, Cuttack Bench. This is a significant milestone in the consolidation of the dairy businesses in the group, with the order having been passed on March 10, 2026.  

The company in question is a wholly owned subsidiary of Hatsun Agro, and the scheme contemplates the merger of the entire business of Milk Mantra Dairy Private Limited with Hatsun Agro Product Limited with effect from the appointed date, i.e., April 1, 2025. Since the wholly owned subsidiary is a wholly owned company, there is no requirement for issuing new shares, and the capital structure of the parent company will remain the same.

Strategic consolidation of dairy operations

The major aim of the merger is to simplify the corporate structure and achieve operational synergies between the two companies. By consolidating the operations of Milk Mantra into Hatsun Agro, the company hopes to improve its financial flexibility and operational efficiency in its dairy business. 

After obtaining approval from the High Court, all assets, liabilities, and obligations of Milk Mantra will be transferred to Hatsun Agro without any further act or deed. The transferring company will then be struck off without undergoing any process of winding up, and its operations will be fully absorbed by its parent company. 

The scheme will be effective after the filing of the certified copy of the order with the Registrar of Companies. After its implementation, the merger is likely to simplify the corporate structure of the company and enable Hatsun Agro to achieve its long-term expansion strategy in the Indian dairy and value-added milk product industry.

Financials

The revenue from operations for the company stood at Rs 2,364 crore in Q3 FY26 compared to the Q3 FY25 revenue of Rs 2,010 crore, up by about 17.6 per cent YoY. Similarly, the net profit stood at Rs 61 crore in Q3 FY26, up compared to the Rs 41 crore profit in Q3 FY25.

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