📊 Heritage Foods Reports Record Revenue and 77% Profit Surge in FY25, Driven by Value-Added Dairy Growth
Hyderabad – Heritage Foods Limited, one of India’s most established dairy companies, has posted its highest-ever annual and quarterly financial results for the fiscal year ending March 31, 2025. The company recorded a 9% year-on-year (YoY) rise in revenue, reaching ₹4,134.6 crore, while profit after tax (PAT) surged by 77% to ₹188.3 crore.
The growth was led by strong performance in the value-added products (VAP) segment, enhanced distribution reach, and gains in market share across key dairy categories such as curd and paneer.
🧈 Value-Added Strategy Pays Off
Heritage Foods’ VAP portfolio—which includes high-margin products like ghee, butter, paneer, and flavoured milk—saw a 19% YoY jump in revenue, clocking ₹419.8 crore. The segment now accounts for 40.6% of the company’s total revenue, underscoring a strategic shift toward margin-rich dairy offerings.
“Despite industry headwinds, our sharp focus on value-added products, efficient procurement, and brand-driven expansion has delivered record-breaking results,” said Brahmani Nara, Executive Director of Heritage Foods.
🚀 Operational Efficiency and Milk Procurement Up
- EBITDA rose 58% YoY to ₹331 crore
- EBITDA margins improved to 8%, while gross profit margins expanded to 25% (vs 20.7% last year)
- Milk procurement grew 10.4% YoY to 1.72 million litres per day (MLPD)
- Liquid milk sales increased 4.5% YoY to 1.16 MLPD, with average selling price at ₹55.6 per litre
These improvements reflect both procurement cost optimisation and a stronger product mix strategy, which is especially relevant amid ongoing milk price volatility in India.
🔄 Strategic Acquisition and Subsidiary Growth
The company acquired a majority stake in Heritage Novandie Foods Pvt. Ltd. (HNFPL) for ₹8.5 crore. The move aligns with a shift toward a lean contract manufacturing model, offering greater cost agility.
Its cattle feed arm, Heritage Nutrivet Ltd., also saw significant growth:
- Revenue up 15.5% YoY
- PAT up 137% YoY, reaching ₹12.4 crore
📊 Heritage Foods Financial Performance (FY2020–FY2024)
| Fiscal Year | Revenue (₹ Crore) | Profit After Tax (₹ Crore) |
|---|---|---|
| FY2020 | 2,725.9 | 211.0 |
| FY2021 | 2,473.1 | -253.0 |
| FY2022 | 2,681.3 | 208.0 |
| FY2023 | 3,240.7 | 105.9 |
| FY2024 | 3,805.9 | 106.5 |
Note: Figures are consolidated and sourced from official financial statements.
📈 Key Insights
- Revenue Growth: Heritage Foods has demonstrated a consistent upward trajectory in revenue, achieving a ~40% increase from FY2020 to FY2024.
- Profitability: Despite a significant loss in FY2021, the company rebounded in subsequent years, maintaining profitability with PAT figures stabilizing around ₹106 crore in FY2023 and FY2024.
- Strategic Focus: The company’s emphasis on value-added products, such as ghee and paneer, has contributed to revenue growth, with these segments now accounting for a substantial portion of total income.
Heritage Foods will host an earnings call on May 19, 2025, to provide more insights. The full investor presentation is available on the company’s official website.
