Heritage Foods Limited delivered resilient revenue growth of 9% YoY, reaching ₹45,260 million in FY26, despite a challenging operating environment marked by milk shortages and inflation. The company achieved strong traction in its Value-Added Products (VAP) segment, which contributed 41.9% to total revenue in Q4 FY26. With strategic investments in new capacity and a robust distribution network, the company remains focused on driving sustainable long-term growth and enhancing shareholder value.
FY26 Financial Highlights
Heritage Foods reported a consolidated revenue of ₹45,260 million for the full year FY26, reflecting a 9.5% year-on-year increase. Despite industry-wide headwinds, including elevated procurement inflation and a weak flush season, the company successfully maintained quarterly revenues above the ₹11,000 million mark. For the fourth quarter (January-March 2026), revenue stood at ₹11,576 million, representing a 10.4% growth compared to the same period in the previous year.
Strategic Growth in Value-Added Products
The company continued its successful pivot toward high-margin segments. The Value-Added Products (VAP) portfolio, which includes curd, paneer, and consumer fats like ghee and butter, achieved an 18% revenue increase in Q4, reaching ₹3,957 million. When inclusive of all consumer pack fats, this segment’s contribution to total revenue rose to 41.9% in Q4 FY26, up from 36.8% in Q4 FY25, highlighting the effectiveness of the premiumization strategy.
Operational Expansion and Innovation
Heritage Foods is aggressively scaling its production capabilities to meet rising demand. Notably, the company has started commercial production at its new state-of-the-art ice cream plant in Shamirpet, Hyderabad. This facility boasts an annual capacity of 24 million litres and is a key pillar in the company’s goal to reach ₹500+ crore in ice cream revenue by FY30.
Strengthening the Supply Chain
The company maintains a strong competitive advantage through its federated supply chain model. With a direct relationship with 300,000+ farmers and zero milk holidays, Heritage ensures consistent supply quality. The distribution network remains extensive, currently spanning 7,500+ distributors and 225,000+ retail outlets, further supported by 16 e-commerce partnerships to capture the growing digital-first consumer base.
Commitment to Sustainability and Shareholders
Heritage Foods continues to prioritize shareholder returns, maintaining a consistent dividend payout record. The company’s ESG initiatives also remain a core focus, with 14.37 MW of renewable energy capacity now fulfilling 39% of its total power needs, underscoring a commitment to sustainable, long-term business growth.
Source: BSE
