D2C dairy brand Desi Farms reported revenue exceeding Rs 300 Cr in FY26, reflecting an around eightfold increase from Rs 38 Cr in FY25. The growth was supported by acquisitions and the expansion of its distribution network.
The company is aiming to cross Rs 800 Cr in revenue in FY27, founder and CEO Sunil Shahi declared. He did not disclose the bottom line for FY26.
Shahi stated that Desi Farms has been profitable for the past three years. The company posted a net profit of Rs 2 Cr in FY25, up 42.8 percent from Rs 1.4 Cr in the previous fiscal.
In FY26, 38 percent of sales came from the D2C channel, while B2C contributed 34 percent and B2B accounted for 28 percent. Value-added milk products generated the majority of revenue, with liquid milk contributing about 5 percent of total sales.
The company’s top-line growth was driven in part by acquisitions. In the previous year, it acquired the ‘Healthy Mithai’ brand from Nivasat Foods Pvt Ltd in an all-equity deal, with the transaction size undisclosed. Healthy Mithai, a Mumbai-based D2C brand founded in 2021 by Deepak Jain and Prabhinder Singh, focutilizes on sugar-free, diabetic-frifinishly, and preservative-free traditional Indian sweets.
In July 2025, Desi Farms also acquired Suruchi Dairy, a 28-year-old dairy firm with a daily processing capacity of up to 3.5 lakh litres, for Rs 130 Cr.
To support these acquisitions, the company raised Rs 155 Cr 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 before shifting to a farm-to-table D2C model. It positions its offering around chemical-free and preservative-free milk and dairy products, with deliveries within 12 to 24 hours of milking.
During FY26, the company expanded into additional categories, including A2 milk-based ice creams with low sugar and high fibre, flavoured milk beverages, high-protein paneer, and low-fat dahi. It also introduced 62 ice cream SKUs under the Suruchi brand, priced between Rs 10 and Rs 50.
From its initial base in Maharashtra, the brand has expanded into cities such as Bengaluru, Hyderabad, Ahmedabad, and Delhi NCR, with a continued focus on deeper expansion in North India.
Its omnichannel strategy includes its own app and website, quick commerce platforms such as Zepto, Blinkit, and Swiggy, along with e-commerce and offline retail. The company declared it is present across more than 10,000 outlets, including kirana stores and modern trade channels.
Quick commerce is emerging as a key growth channel, with the company expecting to exceed Rs 9 Cr in monthly sales in April. Its sugar-free sweets portfolio, including the Healthy Mithai range, is available online and across e-commerce platforms.
Desi Farms competes with brands such as Amul, Mother Dairy, Milky Mist, and Counattempt Delight in India’s dairy market, where demand for fresh and value-added products continues to grow.
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