Heritage Foods, one of India’s leading dairy companies known for its wide portfolio of milk and value-added dairy products, has announced its consolidated financial results for the quarter ended June 30, 2025. Despite challenging weather conditions, the company recorded its highest-ever quarterly revenue, crossing the ₹11,000 million milestone with a strong 10% year-on-year growth.

Celebrating 34 years of purpose-led growth, Heritage Foods reaffirmed its commitment to innovation, good governance, and farmer empowerment. The company unveiled ‘Vision 2030’, aiming to become India’s most admired dairy nutrition brand.

The company reported consolidated revenue of ₹11,368 million in Q1 FY26, up 10% YoY. However, EBITDA stood at ₹739 million, down 21% YoY, with an EBITDA margin of 6.5%, and Profit After Tax (PAT) at ₹405 million, down 31% YoY. Margin pressures were attributed to the early onset of unseasonal rains and some calibrated pricing actions.

Key Business Highlights – Q1 FY26:

• Record Revenue Performance: Achieved all-time high quarterly revenue of ₹11,368 million despite adverse weather impacting consumer demand for summer-centric value-added products (VAP).

• Milk Procurement and Sales Growth: Daily milk procurement grew by 9.9% YoY to 17.8 lakh liters, while milk sales rose 2.8% YoY to 11.6 LLPD. The average milk procurement price was ₹43.3/litre, up 4.7%, and milk realization increased to ₹56.4/litre.

• Value-Added Products (VAP) Recovery: Despite the impact of early rains, Q1 VAP revenue grew 5.5% YoY to ₹4,034 million, contributing 36.1% to overall revenue (ex-fats). Including ghee and butter packs, total VAP revenue reached ₹4,540 million, a 7.4% YoY growth, accounting for 40.6% of total revenue.

• Input Cost vs Revenue Realization: Raw milk prices rose by 4.74% (₹1.96/litre YoY), while blended revenue per kg/litre increased by ₹2.47, or 4.1%. Lower VAP mix impacted net revenue by ~0.8%, and pricing strategies accounted for another ~1.3% dip in net revenue, together exerting margin pressure.

• Heritage Nutrivet’s Stellar Performance: The wholly owned subsidiary delivered a 26% YoY revenue growth to ₹533 million. Profit before tax surged 130% YoY to ₹67 million, demonstrating operational efficiency and strategic focus.

• Strategic Investments: The board approved acquiring an additional 44.4% stake in Heritage Novandie Foods Private Limited (HNFPL), taking total shareholding to 94.4%, providing strategic control over the yogurt supply chain. The upcoming greenfield ice cream facility and other VAP-linked investments are expected to bolster future growth.

• Marketing and Product Innovation: A 360-degree marketing campaign featuring TVCs, digital influencers, and on-ground activations was rolled out. The company also launched ‘Heritage Livo Healthy-Living’ range, which includes fortified flavored milk and high-protein yogurts catering to health-conscious consumers.

• Recognized Among India’s Best Workplaces: Heritage Foods has been recognized as one of India’s Best Workplaces in FMCG by the Great Place to Work® Institute, building on its certification from November 2024.

Brahmani Nara, executive director, Heritage Foods, stated,
“We are happy to report a 10% growth in Q1 of FY’26, delivering our highest-ever quarterly revenue of ₹11,368 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. Our upcoming greenfield ice cream project is progressing on track, and we continue to build momentum across our brands and deepen partnership with our customers. With highest consumer loyalty in our core markets and a steadily expanding network, we are well-positioned to accelerate growth in the quarters ahead. As we scale innovations and execution, we remain firmly rooted in our founding principles of transparency, quality, and farmer empowerment.”