Crosses Rs 45,000 Mn annual revenue milestone

Heritage Foods Limited, a leading dairy company offering milk and value-added dairy products, announced its financial results for the quarter and year ended 31 March 2026, reporting resilient performance despite significant input cost inflation and supply-side constraints.

For FY26, consolidated revenue rose 9 percent year-on-year to Rs 45,260 million, while Q4 revenue increased 10 percent to Rs 11,576 million, supported by steady consumer demand and strong execution across categories.

The company’s value-added products (VAP) portfolio remained the key growth driver, with VAP revenue rising 13 percent to Rs 14,678 million in FY26. VAP contribution improved to 35.3 percent compared to 32.0 percent in the previous year, while including consumer-pack fats, the contribution expanded further to 41.9 percent in Q4 FY26.

Within the portfolio, paneer volumes grew 27 percent in FY26, curd volumes increased 7 percent, and ice cream volumes rose 15 percent, reflecting strong consumer traction across premium categories. Emerging products and innovations such as Livo Yogurts, A2 curd, high-protein paneer, and premium ice cream ranges also supported growth momentum.

However, the year was marked by severe supply-side challenges and elevated milk procurement costs. Average landed milk prices increased 8 percent year-on-year to Rs 46.7 per litre in Q4 FY26, leading to margin pressure, with EBITDA margins contracting to 4.5 percent.

Procurement volumes declined 7 percent year-on-year to 16.38 LLPD in Q4 FY26, reflecting industry-wide supply tightness despite network expansion efforts.

Commenting on performance, Executive Director Brahmani Nara said FY26 was one of the most challenging years for the dairy sector, driven by milk shortages, inflationary pressures, and weak seasonal supply. She noted that the company’s performance reflects strong brand equity, disciplined execution, and continued consumer trust.

Operationally, calibrated pricing actions and improved product mix supported realisations, with milk realisation rising 4 percent and VAP realisation increasing 9 percent for the year.

Digital and emerging channels continued to expand rapidly, with e-commerce and quick-commerce revenue growing 56 percent and fresh distribution channels rising 49 percent year-on-year, strengthening urban reach and market penetration.

The company also reported strong performance from its subsidiary Heritage Nutrivet Limited, which posted a 33 percent revenue increase to Rs 2,454 million, with profit before tax rising to Rs 206 million.

Looking ahead, Heritage Foods said it remains focused on expanding procurement infrastructure, scaling premium and value-added categories, and strengthening distribution capabilities to drive sustainable long-term growth as industry conditions normalize.