Heritage Foods Q2 FY26 Earnings Results

Company Overview

Heritage Foods, incorporated in 1992, is a diversified dairy and FMCG company engaged in businesses spanning Dairy, Renewable Energy, and Animal Feed. The company’s dairy division remains its core segment, offering products such as milk, curd, ghee, butter, paneer, flavored milk, and other value-added dairy offerings. Heritage Foods continues to focus on farmer empowerment, sustainability, and supply-chain integration across its operations. Presenting below its Q2 FY26 Earnings Results.

Q2 FY26 Earnings Results

Heritage Foods Ltd reported total revenue of ₹1,113 crore, marking a 9.12% rise year-on-year from ₹1,020 crore in Q1 FY25. Total expenses were ₹1,059 crore, up 10.43% year-on-year, primarily due to higher procurement and logistics costs. The company’s consolidated net profit stood at ₹51 crore, a modest increase of 4.08%, compared with ₹49 crore in the same quarter last year. Correspondingly, earnings per share (EPS) improved to ₹5.50, up 4.96% year-on-year.

Operational & Strategic Update

• Record Revenue Performance: Heritage achieved its highest-ever quarterly revenue, reaching ₹1,136.8 crore, reflecting solid demand in core dairy categories despite weather challenges that impacted summer product sales like ice cream and buttermilk.
• Procurement & Supply Chain: Milk procurement volumes increased 9.9% YoY to 17.8 lakh liters per day (LLPD), backed by deeper farmer engagement. Milk sales volumes rose 2.8% YoY to 11.6 LLPD, with average realization per liter improving by 2.9% year-on-year.
• Value-Added Products (VAP): Revenue from VAP grew 5.5% YoY to approximately ₹403 crore, driven by growth in ghee, paneer, and butter categories. However, lower demand for summer-centric products temporarily impacted margins.
• EBITDA & Margin: EBITDA stood at ₹73.9 crore, reflecting a 21% YoY increase, while the margin remained stable at 6.5%, supported by cost optimizations and operational efficiencies.
• Brand & Expansion: Heritage continued strengthening its brand presence in Southern India and expanded its retail reach under its “Heritage Parlours” format.

Outlook

Looking ahead, Heritage Foods aims to strengthen its value-added dairy portfolio and expand its presence in high-margin branded categories. The company’s ‘Vision 2030’ initiative focuses on becoming India’s most admired dairy nutrition brand through sustainability, digitalization, and deeper rural engagement. Despite temporary weather-linked challenges, Heritage remains confident in maintaining double-digit revenue growth momentum in FY26.

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