Heritage Foods Reports Highest Quarterly Revenue in Company History for Q1 FY27, Driven by Value-Added Product Growth

Heritage Foods Reports Highest Quarterly Revenue in Company History for Q1 FY27, Driven by Value-Added Product Growth​

Heritage Foods Ltd has reported strong operational performance for the first quarter of financial year 2027 (Q1 FY27), recording the highest quarterly revenue in the company's history. The results demonstrate sustained growth and a strategic shift toward differentiated value-added products (VAPs), even amidst challenges in raw material procurement.

The company announced consolidated revenue reaching INR13,381 million for Q1 FY27. Financial metrics showed EBITDA at INR619 million, resulting in an EBITDA margin of 4.6%. Profit after tax stood at INR150 million, equating to a PAT margin of 1.9%.

During the quarter, milk procurement prices rose by 7% year-on-year (YoY) to INR46.61 per liter. Despite elevated input costs within the dairy sector, management stated that resilient demand and calibrated pricing actions helped drive healthy growth while supporting future investments. Milk procurement volumes were maintained at 18.10 lakh liters per day, reflecting sustained farmer engagement initiatives by Heritage Foods Ltd.

Q1 FY27 Financial Snapshot and Key Metrics​

Value-Added Products Drive Growth and Mix Evolution​

Value-added products were the primary growth engine during Q1 FY27. VAP revenues grew significantly by 40% YoY to INR5,636 million. The broader portfolio, including consumer pack ghee and butter, expanded by 39% YoY to reach INR6,322 million, contributing a record 49% of consolidated revenues—up from 36% in the corresponding quarter last year.

The growth across various VAP categories was robust:

• Lassi grew by 98%.
• Buttermilk saw a substantial rise of 60%.
• Paneer volumes increased by 33%.
• Curd and Ice cream grew at 26% and 25%, respectively.

The ice cream business also experienced strong momentum, with revenue crossing INR550 million, which represents a 65% increase YoY driven by the Alpenvie brand (44% growth). Get-A-Way showed encouraging performance with revenue rising by 196% YoY after capacity expansion was achieved. The company's newly commissioned ice cream facility is currently running at approximately 40% capacity utilization, serving both the Alpenvie and Get-A-Way portfolios from a unified platform.

Strategic Investments and Adjacent Business Success​

Beyond core dairy operations, the adjacent business segment delivered encouraging performance. Heritage Nutrivet reported revenue of INR728 million, marking a robust 37% YoY growth despite input cost pressures in the animal nutrition industry, achieving a PBT of INR20 million.

In terms of long-term strategic positioning, the company expanded its portfolio by making Heritage Novandie Foods a wholly owned subsidiary to reinforce the presence of the Livo brand in the high-protein yogurt category. Additionally, the company increased its shareholding in Peanut butter and Jelly Limited to 71%, underscoring commitment to the premium food segment.

Operational Focus and Market Dynamics​

Management highlighted that the procurement process remains a critical area of focus, with efforts directed toward building a stronger procurement network at the village level through local centers and improving farmer productivity.

During the conference call, questions regarding pricing were addressed:

• The 40% growth in VAP was largely volume driven, with a weighted average price hike across value-added products noted at about 5.12%.
• The contribution of curd to the VAP category is expected to continue declining as other segments grow faster, though it currently stands at around 69% of VAP sales.

Looking forward, company management confirmed commitment to continuous pricing action in response to raw material cost increases. They also articulated a long-term objective to grow value-added product contribution by an additional 10 percentage points over four years, aiming for contributions near the 50% mark by FY30.

The report noted that Heritage Foods received the Investor Relations Excellence Award from the Investor Relations Society, and Mrs. Bhuvaneswari Nara and Executive Director Mrs. N. Brahmani were recognized among Fortune India's Most Powerful Women 2026.

HERITGFOOD Stock Price Movement​

Heritage Foods Limited saw its stock rally today, settling at ₹332.60 after closing a gain of 0.66%. The company's shares traded heavily throughout the day, with total volume reaching 535,291 as the price moved within an intraday range established between ₹320 and ₹338.2.