Heritage Foods Limited delivered resilient financial performance for FY26, achieving ₹45,260 million in revenue, a 9% year-on-year growth, despite a challenging operating environment marked by milk shortages and inflationary pressures. The company sustained strong momentum in its value-added products segment and continues to expand its strategic footprint, including the commission of a state-of-the-art 24 million litre annual capacity ice cream facility in Shamirpet.
FY26 Financial Performance Overview
Heritage Foods showcased steady growth in FY26, generating total revenue of ₹45,260 million, representing a 9.5% increase over the previous year. While the dairy industry faced significant headwinds, including elevated procurement inflation and a weak flush season, the company maintained a consistent quarterly revenue performance above the ₹11,000 million mark. For the full year, the company reported an EBITDA of ₹2,663 million and a Profit After Tax of ₹1,501 million.
Strategic Growth in Value-Added Products
The company’s focus on its high-margin Value-Added Products (VAP) segment has proven successful. VAP revenue reached ₹14,678 million in FY26, marking a 12.6% year-on-year increase. This segment continues to be a core driver of long-term profitability, with the contribution of VAP to total revenue showing consistent improvement. The company is actively scaling premium categories such as curd, paneer, ice creams, and consumer fats to meet rising urban demand.
Capacity Expansion and Innovation
Heritage Foods has taken significant strides in enhancing its production capabilities. A key highlight is the new ice cream manufacturing facility in Shamirpet, Hyderabad, which features state-of-the-art technology and an annual capacity of 24 million litres. This facility, which has already commenced commercial production, is expected to be a major contributor to the company’s goal of reaching ₹500+ crore in ice cream revenue by FY30.
Operational Excellence and Market Reach
The company continues to leverage its deep-rooted network of 300,000+ farmers across 9 states to ensure a steady supply of high-quality milk. With a robust distribution network comprising over 7,500 distributors and 225,000+ retail outlets, Heritage Foods is successfully capitalizing on the shift from unorganized to organized dairy consumption. Digital transformation remains a priority, with internal applications like the DMS and Heritage VET+ app streamlining operations and improving efficiencies across the entire dairy value chain.
Source: BSE
