Heritage Foods reports 10% revenue growth in Q1-FY26

INDIA – Hyderabad-based Heritage Foods has reported 10% YoY revenue growth, surpassing INR 11,000 million (US$127.71 million) in quarterly revenue.

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 ₹56.4/litre from ₹ 54.8/litre last year, up 2.9%, reflecting stable market positioning and pricing strength.

Commenting on the Results, 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 (US$ 131.87 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.”

Raw milk prices increased by 4.74% in Q1, or Rs 1.96/Lt on a 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.

VAP delivered a 5.5% increase in revenue Y-o-Y to INR 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.

When including Ghee and Butter consumer packs, VAP revenue surged to INR 4,540 million (US$52.71 million), marking a 7.4% YoY growth. The segment now contributes 40.6% of total revenue.

Heritage Nutrivet Limited, a subsidiary of the company, posted a 26% YoY increase in revenue, reaching INR 533 million (US$6.07 million). Profit before tax surged by an impressive 130% YoY to INR 67 million (US$777,870), reflecting operational efficiency and strategic focus.

In this quarter, 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 company stated that 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.

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