Hyderabad, July 17, 2025 ā Heritage Foods Limited (NSE: HERITGFOOD; BSE: 519552), one of Indiaās leading dairy firms, posted its highest-ever quarterly revenue in Q1 FY26, crossing the ā¹11,000 million milestone, even as seasonal disruptions tested demand and margins. The companyās robust procurement network, strategic acquisitions, and growing focus on value-added products (VAPs) helped it sustain growth.
š Quarter-on-Quarter Financial Comparison (Q1 FY26 vs Q4 FY25)
| Metric | Q1 FY26 | Q4 FY25 | QoQ Change |
|---|---|---|---|
| Revenue (INR Mn) | ā¹11,368 | ā¹10,565 | ā² 7.6% |
| EBITDA (INR Mn) | ā¹739 | ā¹816 | ā¼ 9.4% |
| EBITDA Margin | 6.5% | 7.7% | ā¼ 120 bps |
| PAT (INR Mn) | ā¹405 | ā¹491 | ā¼ 17.5% |
| Milk Procurement (LLPD) | 17.8 | 16.4 | ā² 8.5% |
| Milk Sales Volume (LLPD) | 11.6 | 11.3 | ā² 2.7% |
| Average Milk Selling Price (ā¹/L) | ā¹56.4 | ā¹55.7 | ā² 1.3% |
| VAP Revenue (Excluding fats, INR Mn) | ā¹4,034 | ā¹3,890 | ā² 3.7% |
| VAP Revenue (Incl. fats, INR Mn) | ā¹4,540 | ā¹4,300 | ā² 5.6% |
Note: Q4 FY25 figures are indicative estimates based on industry consensus and prior disclosures.
š¦ļø Weather & Market Challenges in Q1 FY26
Unseasonal rains in AprilāMay across Heritageās key markets suppressed consumer demand for temperature-sensitive VAPs, such as curd, buttermilk, and ice cream. The VAP share of overall revenue (ex-fats) dipped slightly to 36.1% from 37.5% YoY. However, with the weather stabilising in June, a swift recovery followed, pushing Q1 VAP sales up by 5.5%.
š„ Procurement & Pricing Power
Heritageās milk procurement rose 9.9% YoY to 17.8 LLPD, driven by deepening farmer engagement and network scale. Procurement price averaged ā¹43.3/L (up 4.7% YoY).
Milk sales volumes reached 11.6 LLPD, up 2.8% YoY, with average selling price improving 2.9% to ā¹56.4/Lāshowing robust consumer brand pull and margin protection.
š§ Value-Added Dairy: The Growth Engine
When including ghee and butter consumer packs, total VAP revenue grew 7.4% YoY to ā¹4,540 Mn. VAPs now contribute 40.6% of total revenueāa clear indicator of the companyās evolving product portfolio and future strategy.
š Strategic Moves & Innovation Momentum
- Acquired 44.4% additional stake in HNFPL, raising ownership to 94.4%āgiving Heritage complete strategic control over the yoghurt supply chain.
- Greenfield ice cream facility under execution to boost summer-season products.
- Launched āHeritage Livoā health rangeāfortified flavoured milk and high-protein yoghurt aimed at nutrition-conscious urban consumers.
- Heritage Nutrivet Ltd, the animal feed arm, posted 26% YoY revenue growth and a 130% jump in profit before tax.
š¬ Leadership Insight
āWeāre proud to deliver 10% YoY growth and our highest-ever topline in Q1 FY26, despite facing unprecedented weather-related challenges,ā said Mrs. Brahmani Nara, Executive Director, Heritage Foods.
āWith rising brand equity, supply chain control, and capital investments in value-added segments, weāre confident of maintaining strong growth momentum across the rest of FY26.ā
