Heritage Foods Crosses ₹45,000 Mn Annual Revenue Milestone Despite Severe Milk Supply Challenges

Heritage Foods Crosses ₹45,000 Mn Annual Revenue Milestone Despite Severe Milk Supply Challenges​

Heritage Foods Limited, a major dairy company offering milk and value-added dairy products, announced its financial results for the quarter and year ended March 31, 2026. The company reported strong performance, reaching an annual revenue of ₹45,260 million, demonstrating resilience amidst industry-wide headwinds, including severe milk shortages and increased input costs.

Q4 and Full Year 2026 Performance Highlights​

Heritage Foods navigated the challenging operating environment of FY26, marked by weak flush seasons and elevated inflation. The company recorded revenue growth of 9% year over year (YoY) to ₹45,260 million for the fiscal year. For the quarter (Q4FY26), the company achieved revenue of ₹11,576 million, representing a 10% YoY increase.

The consolidated financial performance for the quarter and the full year ended March 31, 2026, is detailed below:

Operational Resilience and Growth Drivers​

Despite facing significant supply-side challenges and increased raw material costs, the company reported strong growth, particularly in its consumer segments and distribution channels.

Milk Supply and Inflation:
Industry-wide milk inflation was visible in Q4FY26, with average landed milk costs reaching ₹46.7/litre, marking an 8% YoY increase. These factors led to procurement volumes falling 7% YoY to 16.38 LLPD in Q4FY26.

Consumer Business Momentum:
The consumer business continued its robust growth momentum, leading to an ex-bulk-fats sales revenue growth of 12% YoY in Q4 FY26 and 11% YoY for the full fiscal year. This growth was attributed to strong traction in value-added products (VAPs), premiumization, and sustained market share gains across key channels.

Specific category growth highlighted strong consumer demand:

• Paneer: Volumes grew 32% YoY in Q4 and 27% YoY in FY26.
• Curd: Volumes rose 11% YoY in Q4 and 7% YoY in FY26.
• Ice Cream: Volumes increased 26% YoY in Q4 and 15% YoY in FY26.

Value-added products also saw significant growth, with VAP revenue increasing 18% YoY to ₹3,957 million in Q4FY26 and 13% YoY to ₹14,678 million in FY26. The contribution of VAPs improved to 35.5% in Q4FY26 and 35.3% in FY26, compared to 32.5% and 32.0% respectively in the prior years.

Realization and Channels:
The company’s strong pricing discipline and high VAP contribution helped support realized growth, with milk realization increasing 4% YoY in both Q4FY26 and FY26, while VAP realization improved 7% YoY in Q4FY26 and 9% YoY in FY26.

Furthermore, the expansion into emerging channels proved robust:

• E-Commerce and Q-Commerce revenues grew 56% YoY.
• Fresh Distribution and other emerging channels grew 49% YoY, strengthening urban market penetration.

Subsidiary Performance:
Heritage Foods’ wholly owned subsidiary, Heritage Nutrivet Limited, reported a 33% YoY increase in revenue, reaching ₹2,454 million in FY26. Profit before tax surged to ₹206 million, underscoring operational excellence.

During the fiscal year, the company also recognized a one-time employee benefit provision of ₹48 million due to the implementation of new Labour Codes.

HERITGFOOD Stock Price Movement​

Today, Heritage Foods Limited shares edged higher, closing at ₹378.3, which represents a 4.25% rally for the day. The stock saw strong momentum, with over 1.28 million shares traded during the session.