Heritage Foods Ltd. has reported its highest-ever quarterly consolidated revenue of Rs 13,381 million for the quarter ended June 30, 2026, registering an 18% year-on-year (YoY) growth despite elevated milk procurement costs and supply constraints across the dairy industry.
The dairy company said it continued to prioritise long-term growth by strengthening its procurement network and expanding its value-added products (VAP) portfolio, which contributed a record 44% of overall revenue during the quarter.
The company recorded consolidated EBITDA of Rs 619 million, down 29% YoY, with EBITDA margin declining 188 basis points to 4.6%. Profit after tax (PAT) stood at Rs 250 million, a decline of 38% YoY. Gross margin was 21%, down 260 basis points.
During the quarter, Heritage strengthened its milk procurement network through a farmer-first approach. Despite industry-wide milk shortages and a 7.2% YoY increase in procurement prices, the company reported a 2% increase in milk procurement volumes to 18.10 lakh litres per day (LLPD). Average procurement cost rose to Rs 46.61 per litre, reflecting continued inflation in raw milk prices.
On the consumer side, Heritage implemented calibrated price increases across its portfolio, resulting in a 4% YoY rise in average milk selling prices to Rs 58.68 per litre. Milk sales volumes remained stable at 11.62 LLPD during the quarter.
The company’s value-added products business continued to outperform, with revenue rising 39.7% YoY to Rs 5,636 million. Volume growth was led by paneer (33%), curd (26%), buttermilk (60%), lassi (98%) and ice cream (25%). Heritage said the performance reflects growing consumer demand, strong brand acceptance and an expanding distribution network.
The consumer ghee and butter portfolio also recorded strong growth. Revenue from consumer pack fats increased 39.3% YoY to Rs 6,322 million, with its contribution to total revenue rising to a record 49%, compared to 41% in the corresponding quarter last year.
The company’s ice cream business, including GETAWAY, crossed Rs 550 million in revenue during Q1FY27, growing 65% YoY. Alpenvie, Heritage’s core ice cream brand, posted 44% YoY growth. The company said differentiated offerings, including GETAWAY’s high-protein and zero-sugar range, continued to gain traction.
As part of its growth strategy, Heritage completed the acquisition of the remaining 5.6% stake in Heritage Novandie Foods Ltd., making it a wholly owned subsidiary. The company said Livo, its digital-first high-protein yogurt brand, is now among the top five yogurt brands in organised trade.
Heritage also increased its stake in Peanut Butter and Jelly Ltd., the parent company of GETAWAY, to 71% in line with its investment roadmap. The company said the move would help accelerate growth in nutrition-led categories while retaining founder involvement in innovation and brand building.
Its wholly owned subsidiary, Heritage Nutrivet Ltd., reported revenue of Rs 728 million during the quarter, up 37% YoY, with a profit before tax of Rs 20 million.
The company also continued to expand its innovation pipeline with the launch of premium Creamy Shakes in Badam and Mango flavours in glass bottles, supported by its first on-pack gamified consumer engagement platform. It added that Nourish+ High Protein Paneer has already contributed over 15% of its overall paneer portfolio within a short period of launch.
Heritage’s newly commissioned ice cream manufacturing facility achieved 40% capacity utilisation during the quarter, producing both Alpenvie and GETAWAY products, helping improve operating leverage.
Brahmani Nara – Executive Director, Heritage Foods, said, “We are pleased to report another quarter of strong execution, with Heritage Foods delivering record quarterly revenue of Rs 13,381 million, up 18% YoY, while our value-added products portfolio reached an all-time high contribution of 44% of revenues. This performance reflects the strength of our integrated dairy model, resilient consumer franchise, expanding Value-Added Products portfolio and disciplined execution across the value chain. The quarter was marked by elevated milk procurement costs and constrained milk availability across the industry. Despite these headwinds, we prioritised strengthening our procurement ecosystem, expanding market share and accelerating the growth of our Value-Added Products portfolio, even as input cost inflation temporarily weighed on profitability.”
She added, “Our ability to increase milk procurement volumes, take calibrated pricing actions and deliver strong, broad-based volume growth across key Value-Added Product categories underscores the strength of our farmer network, brands and route-to-market capabilities. We also strengthened our premium growth platforms by making Heritage Novandie Foods Limited a wholly owned subsidiary and increasing our stake in Peanutbutter and Jelly Limited. We remain confident that our continued investments in procurement, innovation, premiumisation and distribution position Heritage to deliver sustainable and profitable long-term growth as industry conditions normalise.”
