Desi Farms, an Indian dairy and farm-to-table consumer brand, has reported revenue exceeding ₹300 crore in FY2026, marking an eightfold increase from ₹38 crore in FY2025. The company has raised ₹155 crore during FY2026 to support acquisitions and business expansion, including the acquisition of established dairy company Suruchi Dairy Industries and Mumbai-based sweets brand Healthy Mithai Co.
The expansion highlights a growing trend in India’s dairy industry, where companies are combining traditional dairy processing capabilities with direct-to-consumer distribution, value-added products and acquisitions to accelerate growth.
Founded in 2022, Desi Farms initially operated as a business-to-business dairy supplier before shifting towards a farm-to-table direct-to-consumer model. Its business proposition centres on delivering dairy products within 12–24 hours of milking, while expanding its presence across retail outlets, digital platforms and quick-commerce channels.
Suruchi Dairy Acquisition Strengthens Processing Capacity
One of the company’s most significant transactions involved Suruchi Dairy Industries Pvt. Ltd., a dairy business with a 28-year operating history and daily processing capacity of up to 3.5 lakh litres.
Desi Farms began acquiring a 51% stake in Suruchi Dairy in June 2025 through a deal valued at approximately ₹130 crore. The acquisition gives the company access to established dairy processing capabilities and a platform for expanding its product portfolio and distribution.
The transaction is particularly relevant in a competitive dairy market where processing infrastructure, manufacturing capacity and distribution networks can influence the speed at which brands expand. An established dairy business can provide a foundation for introducing new products and serving a wider range of customers.
Following the acquisition, Desi Farms also introduced 62 ice cream stock-keeping units under the Suruchi brand, with prices ranging from ₹10 to ₹50. The launch represents an expansion into a value-added dairy category that offers opportunities beyond conventional liquid milk sales.
Healthy Mithai Co Adds a New Consumer Category
Desi Farms has also acquired Healthy Mithai Co, a Mumbai-based direct-to-consumer brand specialising in sugar-free and diabetic-friendly Indian sweets. The transaction was structured as an all-equity deal, although its value has not been disclosed.
Unlike the Suruchi acquisition, which directly strengthens the company’s dairy operations, Healthy Mithai expands its presence into a different consumer category. The deal reflects an effort to broaden the company’s product offering and reach customers seeking alternatives to conventional sweets.
Together, the two acquisitions demonstrate a growth strategy that combines dairy manufacturing capabilities with adjacent food categories. Their long-term contribution will depend on integration, consumer demand and the company’s ability to manage different brands and product segments effectively.
Value-Added Products Drive Revenue Growth
Desi Farms’ FY2026 revenue mix illustrates the changing structure of its business. According to the figures provided, 38% of sales came from direct-to-consumer operations, 34% from business-to-consumer channels and 28% from business-to-business sales.
Value-added milk products generated the majority of FY2026 revenue, while liquid milk accounted for approximately 5%. This indicates that the company increasingly relies on products beyond packaged liquid milk to generate sales.
For the wider dairy industry, the shift highlights the importance of product diversification. Categories such as ice cream and other value-added dairy products can help businesses develop differentiated offerings and reach customers through multiple channels. However, their commercial performance also depends on production costs, cold-chain logistics, distribution and consumer preferences.
Desi Farms’ products are available across more than 10,000 outlets, alongside its own application, e-commerce platforms and quick-commerce services including Zepto, Blinkit and Swiggy.
Profitability and FY2027 Growth Target
Founder and CEO Sunil Shahi has stated that Desi Farms has remained profitable for three consecutive years. The company reported net profit of ₹2 crore in FY2025, up 42.8% from ₹1.4 crore in the previous financial year.
Quick commerce has also emerged as an important growth channel. As of April 2026, the company expected monthly sales through this channel to exceed ₹9 crore during that month.
Building on its FY2026 performance, Desi Farms is targeting revenue of ₹800 crore in FY2027. Achieving that ambition would require substantial additional growth, supported by distribution expansion, product development and the integration of its acquired businesses.
What the Expansion Means for India’s Dairy Market
Desi Farms’ growth illustrates how dairy businesses are evolving beyond traditional milk supply models. Processing capacity, value-added products, digital distribution and strategic acquisitions are increasingly important components of expansion strategies.
At the same time, the company’s emphasis on freshness raises questions about how brands maintain consistent product quality as their manufacturing footprint and distribution networks grow. Acquisitions do not inherently weaken a freshness proposition, but maintaining it requires effective quality controls, reliable cold chains and consistent operating standards across the business.
For India’s dairy sector, Desi Farms offers an example of a company pursuing scale through a combination of established dairy infrastructure and consumer-focused food brands. Its progress towards the ₹800 crore FY2027 target will provide a further indication of how successfully this strategy translates into sustained growth and profitability.