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Heritage Foods logs highest-ever quarterly revenue, crosses Rs 11,000 mn
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Thursday, 24 July, 2025, 08 : 00 AM [IST]
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Our Bureau, Mumbai
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Heritage Foods Limited announced its results for the quarter ended June 30, 2025.
Key Highlights: Heritage Foods Celebrates 34 Years of Purpose-Led Growth: Reaffirming its focus on farmer empowerment, good governance, and innovation, the company unveiled ‘Vision 2030: to become India’s most admired dairy nutrition brand’. Near-Term Margin Pressure Offset by Long-Term Growth Catalysts: Heritage continued to strengthen its supply chain, with Milk Procurement rising 9.9% YoY to 17.8 lakh litres per day (LLPD) in Q1 FY26. Unprecedented, unseasonal rains from April through May, across all core-markets, led to muted demand for value-added products (VAP) such as curd, buttermilk, flavoured milk, and ice-creams resulting in VAP contribution to overall revenues (ex-Fats) declining marginally to 36.1% from 37.5% in Q1 on a y-o-y basis. However, the situation began normalising from June, resulting in Q1 VAP sales growing at 5.5%. Raw milk prices increased by 4.74% in Q1 or Rs.1.96/Lt on Y-o-Y basis, against which blended revenue per Kg or Lt. of Milk and VAP increased by 4.1% or Rs.2.47/kg. A drop in VAP contribution led to a ~0.8% impact on blended Net Revenue, while some deliberate pricing choices made to address sluggish growth, further lowered Net Revenue by ~1.3%. Together, these factors put pressure on margins, compared to what could have been achieved. The board approved the acquisition of an additional 44.4% stake in HNFPL, increasing the Company’s total holding to 94.4%, offering strategic control of yogurt supply chain. The upcoming Ice cream facility, and other capital investments into Value-added products, are set to deliver positive momentum and further reinforce the company’s growth trajectory in the rest of FY26.
Q1-FY26 Business Highlights: Revenue Performance despite headwinds: Heritage Foods delivered a strong 10% YoY revenue growth, surpassing Rs 11,000 million in quarterly revenue for the first time — marking its highest- ever quarterly topline, despite inclement weather. Continued Steady progress in Procurement - growing at 9.9% in volumes to 17.8 Lakhs litres per day in Q1FY26, with the avg milk procurement prices moving up by 4.7% to Rs 43.3 per litre. Steady Growth in Milk Sales Volume and Realisation: Milk sales rose by 2.8% YoY to 11.6 lakh litres per day (LLPD) in Q1FY26, driven by market expansion and strong brand momentum. The average selling price increased to Rs 56.4/litre from Rs 54.8/litre last year up 2.9%, reflecting stable market positioning and pricing strength. Value-Added Products (VAP) Growth despite headwinds: VAP delivered a 5.5% increase in revenue Y-o-Y to Rs 4,034 million. Despite adverse weather, most VAP categories grew on a year-on-year basis. VAP contribution (ex-fats) stood at 36.1% to total revenue. Expanded VAP Performance including Ghee & Butter: When including Ghee and Butter consumer packs, VAP revenue surged to Rs 4,540 million, marking a 7.4% YoY growth. The segment now contributes 40.6% of total revenue. Heritage Nutrivet Limited Delivers Stellar Results: The wholly owned subsidiary, Heritage Nutrivet Limited, posted a 26% YoY increase in revenue, reaching Rs 533 million. Profit before tax surged by an impressive 130% YoY to Rs 67 million, reflecting operational efficiency and strategic focus. 360° Marketing Campaign Rolled Out, featuring a winning TVC across top regional channels, digital influencers, and creating high-impact on-ground visibility. Launched Heritage Livo ‘Healthy-Living’ with renewed Flavoured milk range (fortified with Vitamins A & D) and High-Protein Yogurts range, targeting health-conscious consumers. Heritage Foods Ltd has been recognised as ‘India’s Best Workplaces in FMCG’ by the Great Place to Work Institute. This follows the certification as a Great Place to Work in Nov. '24.
Brahmani Nara, executive director, said, “We are happy to report a 10% growth in Q1 of FY’26, delivering our highest-ever quarterly revenue of Rs 11,368 million, despite severe inclement weather — a testament to the strength of our brand portfolio and robust milk- procurement system. While unseasonal rains in April–May temporarily impacted demand for value- added products and weighed on profitability, June marked a healthy recovery. Importantly, the fundamentals of our business and the long-term growth drivers remain robust. Our upcoming greenfield ice cream project is progressing on track, and we continue to build momentum across our brands and deepen partnership with our customers. With highest consumer loyalty in our core markets and a steadily expanding network, we are well-positioned to accelerate growth in the quarters ahead. As we scale innovations and execution, we remain firmly rooted in our founding principles of transparency, quality, and farmer empowerment.”
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