Heritage Foods Limited announced its results for the quarter ended September 30, 2025.
Key Highlights:
Resilient Procurement Amid Challenging Weather
- Operational Agility: Despite sharp increases in milk procurement costs in certain regions amid
muted production and erratic weather, the company effectively leveraged its diversified procurement network to optimize costs and sustain volumes. - Strategic Milk Management: Despite the leanest milk production phase and butter shortages, procurement was calibrated to 16.1 LLPD (down 2% YoY) while prioritizing higher-margin Value-Added Products (VAP).
Strong Demand and VAP-Led Growth
- Resilience Amid Weather Challenges: Despite 29% above-normal rainfall and temperatures 1.2°C below the seasonal average, focused market expansion and strong consumer
engagement propelled 15% YoY growth in VAP, with overall volumes up 10.4% YoY and key categories like curd, drinkables, paneer, and ice cream registering double-digit growth. - Optimized Sales Mix and Market Execution: A strategic 86% YoY reduction in low-margin B2B fat sales, alongside 35% YoY growth in the B2C segment, enhanced the sales mix. Strong retail execution, market expansion, and new product introductions further strengthened profitability and overall business quality.
- Pricing and Brand Strength: A calibrated 4.5% price hike YoY and improved product mix offset higher input costs while sustaining 10% blended volume growth. Net of milk realization
increased by ₹2.43 per liter YoY (up 4.45%), reflecting resilient demand and brand equity.
Strategic Growth Momentum and Market Expansion - GST-Led Market Advantage: Following the Sept 2025 GST revision, Heritage swiftly passed on benefits through total price cuts, strengthening competitiveness against unorganized players and supporting higher VAP contribution and market share gains.
- Brand and Portfolio Expansion: The HNFPL integration continues to deliver strong volume growth, while joint campaigns under the LIVO brand on Flipkart enhance visibility.
- Capacity and Capital Investments: Commissioning of the upcoming ice cream plant and VAP-focused capacity additions are expected to further accelerate growth and improve profitability in H2 FY26.
- Favourable Demand Outlook: Festive consumption, flush season milk availability, and GST-led tailwinds position Heritage for robust VAP-led growth in curd, paneer, and emerging categories.
