Heritage Foods reports revenue of US$491.5M in FY2026

INDIA – Heritage Foods has reported that revenue grew to US$491.5 million (₹45,260 million) in FY26 despite a weak flush season, milk shortages and prolonged weather-led disruptions across key markets.

Value Added Products (VAP) revenue grew 18% YoY to  $159.3 million (₹14,678 million) in FY26, with VAP contribution improving to 35.5% in Q4FY26 versus 32.5% in Q4FY25 and to 35.3% in FY26 compared to 32.0% in FY25.

VAP contribution, including consumer-pack fats, stood at 41.9% in Q4FY26 compared to 36.8% in Q4FY25, while FY26 contributed 39.7% versus 36.7% in FY25.

Strong VAP momentum continued, with paneer volumes growing 32% YoY in Q4 and 27% YoY in FY26, curd volumes rising 11% YoY in Q4 and 7% YoY in FY26, and ice cream volumes increasing 26% YoY in Q4 and 15% YoY in FY26, reflecting resilient consumer demand and improving product mix.

VAP growth aided by innovations; strong traction seen in new launches viz, Livo Yogurts, premium Sampurna A2 Curd, Nourish+ High Protein Paneer, Alpenvie Ice Cream range, etc.

Brahmani Nara, Executive Director, Heritage Foods Limited, stated, “The company’s focus on strengthening procurement infrastructure, expanding distribution reach and scaling high-growth categories. With continued investments in premiumisation, new capacities and Value-added Products, we remain well positioned to drive sustainable long-term growth as industry conditions gradually normalise.

“Our consumer business continued to deliver healthy momentum led by strong growth across Value-added Products, premium categories and emerging channels. Categories such as curd, paneer, consumer fats and ice-creams recorded strong traction, while Q-commerce and Fresh Distribution scaled rapidly, strengthening market penetration and consumer engagement across key regions. Calibrated pricing actions and improving product mix also supported realisation growth during the year.”

Weak flush season across key regions drove average landed milk costs to ₹46.7/litre in Q4FY26, up 8% YoY, one of the sharpest raw milk inflations witnessed by the industry. This resulted in EBITDA margins shrinking by 311 bps to 4.5% YoY.

Despite continued network expansion, severe supply-side challenges resulted in procurement volumes falling 7% YoY to 16.38 LLPD in Q4FY26.

Timely and calibrated pricing actions along with higher VAP contribution supported blended realisation growth, with milk realisation increasing 4% YoY in Q4FY26 and 4% YoY in FY26, while VAP realisation improved 7% YoY in Q4FY26 and 9% YoY in FY26. Milk sales volumes grew 1% YoY to 11.73 LLPD in Q4FY26 and 2% YoY to 11.83 LLPD in FY26.

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