Desi Farms: Revenue Soars 8X to ₹300 Cr in FY26
Key Highlights
Desi Farms’ revenue jumps 8X to ₹300 Cr in FY26, driven by strategic acquisitions and expanded distribution. D2C dairy brand aims for ₹800 Cr in FY27.
D2C dairy brand Desi Farms’ revenue surpassed ₹300 Cr in FY26, marking an approximate eightfold increase from ₹38 Cr in FY25. This growth was fueled by strategic acquisitions and expanded distribution networks, according to the company.
The brand aims to exceed ₹800 Cr in revenue in FY27, CEO Sunil Shahi told Inc42. While the top line is projected to grow significantly, the bottom line number was not disclosed.
Shahi stated that Desi Farms has maintained profitability over the past three years. In FY25, the company reported a net profit of ₹2 Cr, a 42.8% increase from the ₹1.4 Cr profit in the previous fiscal year.
In FY26, 38% of the startup’s sales originated from its D2C channel, with 34% from B2C and 28% from B2B. Value-added milk products accounted for the majority of Desi Farms’ revenue, while milk sales contributed approximately 5% of the total.
The company’s revenue growth was supported by inorganic acquisitions. Last year, Desi Farms acquired the ‘Healthy Mithai’ brand from Nivasat Foods Pvt Ltd in an all-equity deal, the financial details of which were not disclosed.
Healthy Mithai, founded in Mumbai in 2021 by Deepak Jain and Prabhinder Singh, specializes in producing and selling sugar-free, diabetic-friendly, and preservative-free traditional Indian sweets.
In July 2025, Inc42 reported that Desi Farms acquired Suruchi Dairy, a 28-year-old dairy firm with a daily processing capacity of up to 3.5 lakh liters, for ₹130 Cr.
To facilitate these acquisitions, Desi Farms raised ₹155 Cr in FY26 from investors including Capital, NOVA Capital, and 3 State Ventures, according to Shahi.
Founded in 2022, Desi Farms initially operated as a B2B dairy brand before transitioning to a farm-to-table D2C model. The company delivers chemical-free and preservative-free milk and dairy products within 12-24 hours of milking, emphasizing freshness as a key differentiator.
In FY26, the brand expanded its product range to include A2 milk-based ice creams with low sugar and high fiber, flavored milk drinks, high-protein paneer, and low-fat dahi. It has launched 62 ice cream SKUs priced between ₹10 and ₹50 under the Suruchi brand.
Desi Farms has expanded its presence from Maharashtra to cities such as Bengaluru, Hyderabad, Ahmedabad, and Delhi NCR, and is now focusing on deeper penetration into North India.
The company’s omnichannel strategy includes its own app and website, quick commerce platforms like Zepto, Blinkit, and Swiggy, as well as ecommerce and offline retail. Desi Farms claims to be present in over 10,000 outlets, including kirana stores and modern trade, building on its existing network of exclusive stores.
Quick commerce is becoming a significant growth driver, with Desi Farms expecting to exceed ₹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 brands such as Amul, Mother Dairy, Milky Mist, and Country Delight in India’s growing dairy market, where demand for fresh and value-added products is increasing.