NewKerala.com

Heritage Foods Q4 Profit Falls 37% on Higher Milk Costs

Heritage Foods reported a 36.7% decline in Q4 FY26 net profit to Rs 24.16 crore, impacted by higher milk procurement costs and supply constraints. Revenue from operations rose 10.4% to Rs 1,157.56 crore, but EBITDA fell 34.6% to Rs 52.23 crore. Value-added products drove growth with an 18% revenue increase, while paneer and ice cream sales saw strong gains. The company crossed Rs 4,526 crore in annual revenue despite industry-wide challenges.

Key Points: Heritage Foods Q4 Profit Down 37% | Milk Costs

  • Net profit fell 36.7% to Rs 24.16 cr
  • Revenue rose 10.4% to Rs 1,157.56 cr
  • EBITDA margin contracted to 4.5%
  • Value-added products revenue grew 18%
2 min read

Heritage Foods' Q4 profit falls 37 pc amid higher milk costs

Heritage Foods reports 36.7% drop in Q4 net profit to Rs 24.16 cr due to higher milk procurement costs and supply constraints, despite 10.4% revenue growth.

"The industry continued to face severe milk shortages and elevated procurement inflation during the financial year, which impacted overall profitability. - Heritage Foods"

Mumbai, May 11

Heritage Foods on Monday reported a 36.7 per cent year-on-year decline in consolidated net profit for the fourth quarter of FY26, as higher milk procurement costs and supply-side constraints weighed on margins despite steady revenue growth.

The company posted a consolidated net profit of Rs 24.16 crore for the January-March quarter, compared to Rs 38.17 crore in the corresponding period previous financial year (Q4 FY25), according to its stock exchange filing.

Revenue from operations rose 10.4 per cent year-on-year to Rs 1,157.56 crore in Q4 FY26, against Rs 1,048.47 crore in the year-ago quarter.

However, EBITDA declined 34.6 per cent to Rs 52.23 crore from Rs 79.88 crore a year earlier, while EBITDA margin contracted sharply to 4.5 per cent from 7.6 per cent.

The dairy company said the industry continued to face severe milk shortages and elevated procurement inflation during the financial year, which impacted overall profitability.

Heritage Foods said procurement volumes during Q4FY26 stood at 16.38 lakh litres per day, down 7 per cent year-on-year due to industry-wide supply constraints.

Average landed milk cost increased 8 per cent to Rs 46.7 per litre amid tight supply conditions and inflationary pressures, as per its exchange filing.

Despite the challenging environment, the company crossed the Rs 4,526 crore annual revenue milestone during FY26.

Milk sales volumes rose 1 per cent year-on-year to 11.73 lakh litres per day in the March quarter and increased 2 per cent for the full financial year, it said in its regulatory filing.

Average milk selling prices rose 4 per cent year-on-year to Rs 57.80 per litre during the quarter, supported by calibrated pricing actions taken by the company.

Value-added products (VAP) continued to remain a major growth driver for the company. Revenue from the segment increased 18 per cent year-on-year to Rs 396 crore in Q4 FY26 and rose 13 per cent to Rs 1,468 crore for the full year.

The contribution of value-added products improved to 35.5 per cent in the March quarter from 32.5 per cent a year ago, while the full-year contribution rose to 35.3 per cent from 32 per cent.

Among product categories, paneer volumes registered a strong 32 per cent year-on-year growth during the quarter, while curd volumes rose 11 per cent and ice cream sales increased 26 per cent.

The growth was supported by new product launches including Livo Yogurts, Sampurna A2 Curd, Nourish+ High Protein Paneer and the Alpenvie ice cream range.

- IANS

Share this article:

Reader Comments

P
Priya S
And we consumers are feeling the pinch! My monthly milk bill has gone up by at least 15-20% in the last year. And curd, paneer, everything else too. But what to do? You can't live without milk in an Indian household. Sad to see Heritage struggling like Amul and others probably are too.
D
David E
Profit falling despite revenue growth? Classic margin compression story. But let's be honest - in a country where millions are dairy-dependent, maybe companies should brace for this. The 4% price hike to us is modest but necessary. I see good management here. And their VAP focus on paneer and curd is smart - higher margins there.
N
Neha E
Love that they're pushing value-added products. The new Livo yogurt and A2 curd - I've tried them. Good quality. But the price is still a bit high for regular consumption. For a family of four, milk alone costs Rs 150 a day now. Heritage needs to find ways to control costs without compromising quality. Still a good long-term hold for investors.
J
James A
The 7% drop in procurement volumes is concerning. If farmers are exiting because input costs are high and returns are low, that's a structural problem. The govt should step in with subsidies or minimum support for milk. Otherwise, we'll all be paying Rs 70 per litre in a few years. Heritage's Rs 4526 crore revenue is impressive though, even in tough times.
S
Siddharth J
I'm more concerned

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50