D2C dairy brand Desi Farms has reported revenue exceeding ₹300 crore in FY26, marking an approximately eightfold increase from ₹38 crore in FY25. The company achieved this sharp growth through strategic acquisitions and a steady expansion of its distribution network, thereby strengthening its position in India’s fast-evolving dairy and D2C market.
Looking ahead, founder and CEO Sunil Shahi stated that the company is targeting to surpass ₹800 crore in revenue in FY27. However, he did not disclose the company’s bottom line for FY26. At the same time, Shahi emphasized that Desi Farms has maintained profitability over the past three years. Notably, the company recorded a net profit of ₹2 crore in FY25, reflecting a 42.8% increase from ₹1.4 crore in the previous fiscal year.
In terms of revenue mix, the company derived 38% of its FY26 sales from its direct-to-consumer (D2C) channel. Meanwhile, B2C contributed 34%, and B2B accounted for 28%, indicating a well-diversified revenue stream. Furthermore, value-added milk products drove the majority of revenue, whereas liquid milk contributed only about 5% of total sales, highlighting a shift toward higher-margin offerings.
Additionally, acquisitions played a crucial role in driving the company’s top-line growth. In the previous year, Desi Farms acquired the ‘Healthy Mithai’ brand from Nivasat Foods Pvt Ltd in an all-equity deal, although the transaction value remained undisclosed. Healthy Mithai, a Mumbai-based D2C brand founded in 2021 by Deepak Jain and Prabhinder Singh, specializes in sugar-free, diabetic-friendly, and preservative-free traditional Indian sweets.
Moreover, in July 2025, the company acquired Suruchi Dairy, a 28-year-old dairy firm with a daily processing capacity of up to 3.5 lakh litres, for ₹130 crore. To support these acquisitions and fuel expansion, Desi Farms raised ₹155 crore in FY26 from investors including NAV Capital, NOVA Capital, and 3 State Ventures, among others.
Founded in 2022, Desi Farms initially operated as a B2B dairy brand; however, it later pivoted to a farm-to-table D2C model. The company now positions itself around chemical-free and preservative-free milk and dairy products, ensuring delivery within 12 to 24 hours of milking, which resonates strongly with health-conscious consumers.
During FY26, the company further diversified its product portfolio by entering new categories. These include A2 milk-based ice creams with low sugar and high fibre, flavoured milk beverages, high-protein paneer, and low-fat dahi. In addition, the company introduced 62 ice cream SKUs under the Suruchi brand, priced between ₹10 and ₹50, thereby targeting mass-market consumption.
Geographically, Desi Farms has expanded beyond its initial base in Maharashtra into key urban markets such as Bengaluru, Hyderabad, Ahmedabad, and Delhi NCR. Simultaneously, the company continues to deepen its presence in North India to capture rising demand for premium dairy and value-added products.
To support this expansion, Desi Farms has adopted a robust omnichannel strategy. It leverages its own app and website; quick commerce platforms such as Zepto, Blinkit, and Swiggy; along with e-commerce marketplaces and offline retail. Currently, the brand operates across more than 10,000 outlets, including kirana stores and modern trade channels, thereby strengthening its retail footprint.
Furthermore, quick commerce is emerging as a significant growth driver. The company expects to exceed ₹9 crore in monthly sales in April, indicating strong traction in this segment. Its sugar-free sweets portfolio, including the Healthy Mithai range, remains available online and across major e-commerce platforms, further enhancing accessibility.
In the competitive landscape, Desi Farms faces established players such as Amul, Mother Dairy, Milky Mist, and Country Delight. Nevertheless, the company continues to differentiate itself through its farm-to-table model, premium positioning, and focus on fresh, value-added dairy products.
The company has demonstrated strong momentum with its rapid revenue growth, strategic acquisitions, and expanding omnichannel presence. By focusing on value-added dairy products, quick commerce, and geographic expansion, the company is well-positioned to capitalize on India’s growing demand for premium and health-focused dairy offerings. With ambitious revenue targets and sustained profitability, Desi Farms is emerging as a formidable player in the competitive Indian dairy market.
