Heritage Foods announced an 8% topline growth amidst milk shortages and sustained input cost pressures, crossing the ₹11,000 million mark for the third consecutive quarter. Value-added products (VAP) led growth with a 13% increase. The company also saw resilient VAP volumes despite adverse weather conditions, with the commissioning of new ice cream and flavored milk plants expected in Q4 FY26.
Financial Performance Highlights
Heritage Foods Limited (BSE: 519552; NSE: HERITGFOOD) announced its results for the quarter ended December 31, 2025. Key highlights include:
- The company logged an 8% topline growth.
- Crossed ₹11,000 million mark for the third consecutive quarter.
VAP-Led Growth
Despite slow retail offtakes, Value-Added Products (VAP) led to the growth. Key details include:
- Consumer dairy business, excluding bulk-fat sales, grew by 13% Y-o-Y.
- Value-added products, including consumer fats, grew at an impressive 22.6%.
- VAP volumes grew 6.8% YoY despite adverse weather.
- Curd volume increased by +6%, crossing 400 tons per day.
- Paneer saw an impressive growth of 25%.
- Ice-cream sales grew by 18%, drinkables with lassi up 29% and milkshakes up 36%.
Strategic Capacity Additions
- The commissioning of the Shamirpet ice cream plant is progressing as planned, with trial production underway and commercial production commissioning expected in Q4 FY26.
- A new flavored milk plant is also expected to be commissioned in Q4 FY26.
Procurement and Margins
- YTD milk procurement volumes declined by 0.82% to 16.86 LLPD (9M FY26).
- Milk procurement volumes stood at 16.73 LLPD in Q3 FY26, reflecting a 9% YoY decline.
- Average landed raw milk cost increased by approximately 9% YoY & approximately 6% QoQ to ₹45.55/Lt.
Consolidated Financial Performance (Q3-FY26)
- Revenue: INR 11,192 Mn (8% YoY).
- Gross Margins: 23%.
- EBITDA: INR 629 Mn ((15)% YoY).
- EBITDA Margin: 5.6% ((154) bps YoY).
- PAT: INR 346 Mn ((20)% YoY).
Subsidiary Performance
- Heritage Nutrivet Limited recorded a 27% YoY increase in revenue to ₹645 million.
Source: BSE
