Sid’s Farm: A Dairy Brand’s Revenue Growth and Challenges

Sid’s Farm, a prominent dairy brand from Hyderabad, has shown significant revenue growth during the fiscal year ending March 2025. Despite this growth, the company faced deeper losses due to escalating costs. The operating revenue of Sid’s Farm rose by 38% to reach Rs 168 crore in FY25, up from Rs 122 crore in FY24, as reported in their financial statements obtained from the Registrar of Companies (RoC).

About Sid’s Farm

Established in 2016, Sid’s Farm is a mass premium dairy brand situated in Hyderabad. The startup takes control of its entire milk and milk product supply chain by sourcing directly from farmers. With the inclusion of other income amounting to Rs 2 crore, the company’s total income for FY25 was recorded at Rs 170 crore.

Financial Highlights

The impressive growth in revenue was coupled with a significant rise in expenses. Sid’s Farm’s total expenses surged by 47% to Rs 196 crore in FY25, in contrast to Rs 133.5 crore in the previous fiscal year.

Expense Breakdown

The cost of materials consumed was the most substantial expense, making up over 64% of total costs, which increased by 41% to Rs 126 crore in FY25. Additionally, employee benefit expenses rose by 47% to Rs 25 crore.

Advertising expenditure almost doubled, reaching Rs 7 crore in FY25, compared to Rs 3.6 crore in FY24. Distribution and transportation costs climbed to Rs 8 crore and Rs 5 crore, respectively. Other expenses accounted for an additional Rs 25 crore during this period.

Impact of Rising Costs

The sharp increase in expenses resulted in Sid’s Farm experiencing a 2.6-time rise in losses, which reached Rs 27 crore in FY25, compared to Rs 10.5 crore in FY24. The return on capital employed (ROCE) and EBITDA margin stood at -45.24% and -14.58%, respectively.

Unit Economics

On a unit basis, Sid’s Farm expended Rs 1.17 to generate a single rupee of operating revenue for the fiscal year, an increase from Rs 1.09 in FY24.

Current Financial Position

As of March 2025, Sid’s Farm holds cash and bank balances of Rs 1 crore, while current assets rose to Rs 45 crore in FY25. To date, Sid’s Farm has successfully raised approximately $12.2 million in funding, including a $10 million round co-led by Omnivore and the Narotam Sekhsaria Family Office.