D2C dairy brand Desi Farms’ revenue crossed the ₹300 Cr mark in FY26, marking an about 8X jump from ₹38 Cr in FY25, as the brand scaled its business via acquisitions and distribution expansion.
The brand is targeting breaching the ₹800 Cr revenue mark in FY27, founder and CEO Sunil Shahi told Inc42. However, he didn’t disclose the bottom line number.
Shahi claimed that Desi Farms has been profitable for the past three years. It reported a net profit of ₹2 Cr in FY25, a 42.8% jump from a profit of ₹1.4 Cr in the previous fiscal year.
While 38% of the startup’s FY26 sales came from the D2C channel, 34% came from B2C and 28% from B2B. Value-added milk products brought in the majority of Desi Farms’ revenue in FY26, while milk sales contributed about 5% of its total sales.
The brand’s top line growth came on the back of its inorganic acquisitions. Last year, it acquired the ‘Healthy Mithai’ brand from Nivasat Foods Pvt Ltd in an all-equity deal. The deal size was not disclosed.
Notably, Healthy Mithai is a Mumbai based D2C brand founded in 2021 by Deepak Jain and Prabhinder Singh. It specialises in producing and selling sugar-free, diabetic-friendly, and preservative-free traditional Indian sweets.
In July 2025, Inc42 exclusively reported that Desi Farms acquired Suruchi Dairy, a 28-year-old dairy firm with a daily processing capacity of up to 3.5 lakh litres, for ₹130 Cr.
To power the acquisitions, Desi Farms raised ₹155 Cr in FY26 from investors including NAV Capital, NOVA Capital, 3 State Ventures, among others, Shahi said.
Founded in 2022, Desi Farms started as a B2B dairy brand before pivoting to a farm-to-table D2C model. It claims to deliver chemical-free and preservative-free milk and dairy products within 12-24 hours of milking, and markets freshness as a key differentiator.
The brand also expanded into new product categories, including A2 milk-based ice creams with low sugar and high fibre, flavoured milk drinks, high-protein paneer and low-fat dahi in FY26. It has launched 62 ice cream SKUs priced between ₹10 and ₹50 under the Suruchi brand.
From an initial presence in Maharashtra, it has expanded to cities such as Bengaluru, Hyderabad, Ahmedabad and Delhi NCR, and is now pushing deeper into North India.
Its omnichannel strategy spans its own app and website, quick commerce platforms such as Zepto, Blinkit and Swiggy, as well as ecommerce and offline retail. The brand claims to be present at over 10,000 outlets, including kirana stores and modern trade, building on its earlier network of exclusive stores.
Quick commerce is emerging as a key growth driver, with Desi Farms expecting to cross ₹9 Cr in monthly sales in April. Its sugar-free sweets, including the ‘Healthy Mithai’ range, are now available online and across ecommerce platforms.
Desi Farms competes with the likes of Amul, Mother Dairy, Milky Mist, Country Delight, among others, in India’s large and growing dairy market, where demand for fresh and value-added products is rising.
The post D2C Brand Desi Farms’ Revenue Surges 8X To ₹300 Cr In FY26 appeared first on Inc42 Media.
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