Heritage Foods Limited demonstrated financial resilience in FY26, crossing the ₹45,000 million annual revenue milestone despite severe supply-side challenges. The company navigated historic raw milk inflation and a weak flush season to achieve 9% year-over-year revenue growth. Significant momentum in Value-Added Products (VAP) and robust performance from its subsidiary, Heritage Nutrivet Limited, helped the company maintain strong market positioning throughout the fiscal year ending March 31, 2026.
Financial Performance Overview
For the quarter ended March 31, 2026, Heritage Foods reported revenue of ₹11,576 million, marking a 10% growth over the previous year. For the full FY26, the company achieved total revenue of ₹45,260 million. Despite the positive top-line growth, the bottom line was impacted by industry-wide challenges, with PAT reported at ₹239 million for the quarter.
Operational Challenges and Procurement
The dairy industry faced an intense inflationary cycle during FY26. Heritage Foods reported that average landed milk costs reached ₹46.7/litre in Q4FY26, an 8% increase year-over-year. Procurement volumes were affected by the weak flush season and lower milk availability, standing at 16.38 LLPD. The company mitigated these pressures through calibrated pricing strategies, which saw average milk selling prices rise to ₹57.80/litre in Q4.
Value-Added Products Growth
A key driver of success was the strong performance of the Value-Added Products (VAP) segment. VAP revenue grew 18% year-over-year to ₹3,957 million in Q4FY26. This segment now accounts for 35.5% of total revenue. Specific categories showed impressive growth, with paneer volumes up 32% and ice cream volumes up 26% in the final quarter. New product launches, including Livo Yogurts, Sampurna A2 Curd, and the Alpenvie Ice Cream range, were instrumental in this growth.
Subsidiary Success and Future Outlook
The wholly-owned subsidiary, Heritage Nutrivet Limited, recorded a robust 33% revenue increase to ₹2,454 million in FY26, with profit before tax surging to ₹206 million. Looking ahead, management remains focused on expanding distribution reach, scaling high-growth categories, and leveraging emerging channels like E-Commerce and Q-Commerce, which collectively grew by 56% during the year.
Source: BSE
