Heritage Foods reports US$138.9M revenue in Q2 FY27

INDIA – Heritage Foods Ltd. has reported US$138.89 million (₹1,320 crore) revenue in the second quarter of FY2027, supported by expanding value-added dairy products, higher sales volumes and continued investment in product innovation.

However, sequential improvements in operating performance indicated a recovery from the first quarter, supported by cost management and a stronger product mix.

EBITDA was US$7.79 million (₹74 crore), up 20% from the previous quarter. EBITDA margin improved to 5.6% from 4.6% in Q1, a 98-basis-point recovery.

Year on year, EBITDA declined 4%, while profit after tax (PAT) fell 39%, reflecting continued cost pressures. Average milk procurement prices increased 11% year-on-year to ₹47.73 per litre during the quarter.

The company attributed the challenging milk-cost environment to demand-supply imbalances, low farm productivity, weather disruptions and rising feed and fodder expenses. These factors are affecting dairy farmers’ economics and pressuring processors’ margins.

Despite supply constraints, deeper engagement with farmers helped Heritage Foods achieve 7% year-on-year volume growth.

The company also reported that calibrated price increases supported revenue growth while maintaining consumer demand across major product categories.

Value-added products emerged as a major growth driver, recording 32% year-on-year growth in Q2 FY27.

Curd, paneer, buttermilk, lassi, and ice cream recorded volume growth of 27%, 38%, 67%, 91%, and 81%, respectively.

The company’s ice cream expansion has been supported by a greenfield manufacturing facility commissioned in the previous year.

Meanwhile, daily curd sales crossed 500 tonnes, supported by positioning focused on natural goodness, taste and the absence of artificial ingredients.

Including consumer packs of ghee and butter, Heritage Foods’ value-added portfolio grew 31% during the quarter.

These products contributed 42.5% of revenue in Q2 FY27, compared with 37.9% in the same quarter last year. For the first half of FY27, the share increased to 45.7%, up from 39.3% a year earlier.

The rising contribution of value-added products is strategically important because it reflects a shift toward a broader dairy portfolio beyond conventional milk.

To receive our email newsletters with the latest news and insights from Africa, the Middle East and around the world, SUBSCRIBE HERE.