Hyderabad, July 17, 2025 â Heritage Foods Limited (NSE: HERITGFOOD; BSE: 519552), one of Indiaâs leading dairy firms, posted its highest-ever quarterly revenue in Q1 FY26, crossing the âč11,000 million milestone, even as seasonal disruptions tested demand and margins. The companyâs robust procurement network, strategic acquisitions, and growing focus on value-added products (VAPs) helped it sustain growth.
đ Quarter-on-Quarter Financial Comparison (Q1 FY26 vs Q4 FY25)
| Metric | Q1 FY26 | Q4 FY25 | QoQ Change |
|---|---|---|---|
| Revenue (INR Mn) | âč11,368 | âč10,565 | âČ 7.6% |
| EBITDA (INR Mn) | âč739 | âč816 | ⌠9.4% |
| EBITDA Margin | 6.5% | 7.7% | ⌠120 bps |
| PAT (INR Mn) | âč405 | âč491 | ⌠17.5% |
| Milk Procurement (LLPD) | 17.8 | 16.4 | âČ 8.5% |
| Milk Sales Volume (LLPD) | 11.6 | 11.3 | âČ 2.7% |
| Average Milk Selling Price (âč/L) | âč56.4 | âč55.7 | âČ 1.3% |
| VAP Revenue (Excluding fats, INR Mn) | âč4,034 | âč3,890 | âČ 3.7% |
| VAP Revenue (Incl. fats, INR Mn) | âč4,540 | âč4,300 | âČ 5.6% |
Note: Q4 FY25 figures are indicative estimates based on industry consensus and prior disclosures.
đŠïž Weather & Market Challenges in Q1 FY26
Unseasonal rains in AprilâMay across Heritageâs 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%.
đ„ Procurement & Pricing Power
Heritageâs milk procurement rose 9.9% YoY to 17.8 LLPD, driven by deepening farmer engagement and network scale. Procurement price averaged âč43.3/L (up 4.7% YoY).
Milk sales volumes reached 11.6 LLPD, up 2.8% YoY, with average selling price improving 2.9% to âč56.4/Lâshowing robust consumer brand pull and margin protection.
đ§ Value-Added Dairy: The Growth Engine
When including ghee and butter consumer packs, total VAP revenue grew 7.4% YoY to âč4,540 Mn. VAPs now contribute 40.6% of total revenueâa clear indicator of the companyâs evolving product portfolio and future strategy.
đ Strategic Moves & Innovation Momentum
- Acquired 44.4% additional stake in HNFPL, raising ownership to 94.4%âgiving Heritage complete strategic control over the yoghurt supply chain.
- Greenfield ice cream facility under execution to boost summer-season products.
- Launched âHeritage Livoâ health rangeâfortified 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.
đŹ Leadership Insight
âWeâre proud to deliver 10% YoY growth and our highest-ever topline in Q1 FY26, despite facing unprecedented weather-related challenges,â said Mrs. Brahmani Nara, Executive Director, Heritage Foods.
âWith rising brand equity, supply chain control, and capital investments in value-added segments, weâre confident of maintaining strong growth momentum across the rest of FY26.â
