Press Release - Un-audited Financial Results for the Quarter ended on June 30, 2026
RESULTS
▼ Concern Flagged
MEDIUM RISK
📅 Filed on BSE: 16 Jul 2026, 04:41 PM IST · BSE ID: 4ced5354-98b3-4dff-b58a-ff2fdf7a839c
View Original BSE Filing (PDF)
💡
In Simple Terms
Heritage Foods achieved record quarterly sales of ₹13,381 million but saw profits decline due to higher milk costs.
🤖 AI Summary
- Heritage Foods reported Q1 FY27 consolidated revenue of ₹13,381 Mn, an 18% YoY increase.
- Consolidated Net Profit (PAT) for Q1 FY27 was ₹250 Mn, representing a 38% YoY decrease.
- Value-Added Products (VAP) revenue grew 39.7% YoY to ₹5,636 Mn, contributing 44% of overall revenues.
- Milk procurement volumes increased 2% YoY to 18.10 LLPD despite a 7.2% YoY rise in procurement costs.
- Heritage Foods increased ownership in Novandie Foods to 100% and in Peanut Butter and Jelly Limited to 71%.
🔢 Key Numbers — exact figures from BSE filing, not rounded
Consolidated Revenue
INR 13,381 Mn
18 %
Consolidated Gross Margins
21%
(260) bps
Consolidated EBITDA
INR 619 Mn
(29) %
Consolidated EBITDA Margin
4.6%
(188) bps
Consolidated PAT
INR 250 Mn
(38) %
VAP Revenue
₹5,636 million
39.7%
VAP Contribution to Revenue
44%
Milk Procurement Volumes
18.10 LLPD
2%
Average Milk Procurement Price
₹46.61/liter
7.2%
🏢 How This Affects the Company
The company's strategic focus on Value-Added Products (VAP) is evident with its contribution reaching a record 44% of overall revenues and strong volume growth across categories like Paneer (+33%), Curd (+26%), and Ice Cream (+65%). Acquisitions of Novandie Foods (100% ownership) and increased stake in Peanut Butter and Jelly Limited (71%) strengthen its premium and nutrition-led product offerings.
While revenue grew 18% YoY to ₹13,381 Mn, consolidated EBITDA decreased 29% YoY to ₹619 Mn, and PAT decreased 38% YoY to ₹250 Mn. This was influenced by elevated milk procurement prices, which increased 7.2% YoY to ₹46.61/liter, impacting gross and EBITDA margins by 260 bps and 188 bps respectively.
The company reinforced its procurement network, achieving 2% YoY growth in milk procurement volumes to 18.10 LLPD, ensuring supply continuity. The newly commissioned ice cream facility reached 40% capacity utilisation in Q1 FY27, supporting production for Alpenvie and GETAWAY brands.
Elevated industry-wide milk inflation and increased procurement prices to ₹46.61/liter pose a cost pressure risk to profitability. The company's strategy of prioritizing supply continuity and farmer engagement over short-term cost optimization aims to mitigate long-term supply risks.
👥 What This Means For Shareholders
✅
Action Required
No immediate action is required by shareholders based on this financial results filing.
👤
Who Is Affected
All shareholders are affected by the company's financial performance, specifically the 18% YoY consolidated revenue growth to ₹13,381 Mn and the 38% YoY decline in PAT to ₹250 Mn.
🔍
Management Signal
Management is prioritizing long-term growth through strategic procurement investments and expansion in Value-Added Products, even if it temporarily impacts short-term profitability due to elevated input costs.
For information only. Not investment advice. ForgeUp is not SEBI-registered.
👁 Watch List — track these upcoming events
Q2 FY27 results — monitor impact of milk inflation on margins and profitability.
Updates on capacity utilization for the new ice cream facility.
Progress on integrating newly acquired subsidiary, Novandie Foods.
MEDIUM RISK
High milk procurement prices are compressing margins, impacting profitability despite strong revenue growth.
💡 Investor Takeaway
Heritage Foods reported Q1 FY27 consolidated revenue of ₹13,381 Mn, up 18% YoY, while consolidated PAT was ₹250 Mn, down 38% YoY. Value-Added Products contributed a record 44% of revenue, growing 39.7% YoY to ₹5,636 Mn, offsetting profitability pressures from increased milk procurement costs.
⚖️ Strengths & Concerns
✅ Positives
- Consolidated revenue reached ₹13,381 Mn, an 18% YoY increase, marking the highest-ever quarterly performance.
- Value-Added Products (VAP) revenue grew 39.7% YoY to ₹5,636 Mn, now contributing a record 44% of overall revenues.
⚠️ Concerns
- Consolidated Net Profit (PAT) decreased 38% YoY to ₹250 Mn due to elevated milk procurement costs.
- EBITDA margin reduced by 188 bps YoY to 4.6%, reflecting the impact of increased raw material expenses.
📅 Company Track Record
Heritage Foods' Q1 FY27 standalone net profit of Rs. 247.70 million showed a 7.5% YoY increase in a related filing, contrasting with the consolidated PAT decline. In Q4 FY26, the company's PAT dropped 37% YoY to INR 239 Mn despite 10% revenue growth, indicating a recurring challenge with profitability amidst revenue expansion.
Based on publicly available historical data. For context only.
❓ Frequently Asked Questions
What was Heritage Foods' consolidated revenue for Q1 FY27?
Heritage Foods reported consolidated revenue of ₹13,381 Mn for the quarter ended June 30, 2026, an 18% increase YoY.
What was Heritage Foods' consolidated net profit (PAT) in Q1 FY27?
Consolidated net profit (PAT) for Heritage Foods in Q1 FY27 was ₹250 Mn, which is a 38% decrease YoY.
What was the contribution of Value-Added Products (VAP) to Heritage Foods' revenue in Q1 FY27?
Value-Added Products (VAP) revenue grew 39.7% YoY to ₹5,636 million and contributed a record 44% of Heritage Foods' overall revenues in Q1 FY27.
How did milk procurement costs change for Heritage Foods in Q1 FY27?
Average landed milk procurement prices increased 7.2% YoY to ₹46.61/liter in Q1 FY27 for Heritage Foods.
What changes did Heritage Foods make in its subsidiary ownership in Q1 FY27?
Heritage Foods increased its ownership in Novandie Foods Limited to 100%, making it a wholly owned subsidiary, and increased its stake in Peanut Butter and Jelly Limited to 71%.
Questions based on this BSE filing only. For information purposes.