Heritage Foods delivered a milestone performance in the first quarter of FY27, crossing Rs. 13,381 million in consolidated revenue for the first time and reinforcing its position as one of India’s leading dairy companies. The achievement came despite one of the most challenging operating environments the dairy industry has faced in recent years, marked by elevated milk inflation and tight milk availability.
During the quarter ended June 30, 2026, Heritage adopted a long-term approach by prioritising farmer engagement and procurement stability over short-term margin protection. While industry-wide milk procurement prices rose sharply, with average landed milk costs increasing 7.2% year-on-year to Rs. 46.61 per litre, the company managed to grow milk procurement volumes by 2% to 18.10 lakh litres per day. This strategic focus helped strengthen its farmer network, ensure uninterrupted milk availability, and support future growth across its consumer businesses.
On the consumer side, Heritage Foods demonstrated strong pricing power without sacrificing demand. Average milk selling prices increased 4% year-on-year to Rs. 58.68 per litre through calibrated price hikes, while milk sales volumes remained stable at 11.62 lakh litres per day. The company’s ability to maintain volume growth despite higher prices reflected the strength of its brand equity, consumer loyalty, and disciplined execution.
A major highlight of the quarter was the continued acceleration of Heritage’s value-added products (VAP) portfolio, which reached a record contribution of 44% of total revenue, compared with 36% a year earlier. Revenue from value-added products surged nearly 40% year-on-year to Rs. 5,636 million, driven by strong volume growth across key categories. Paneer volumes rose 33%, curd grew 26%, buttermilk increased 60%, lassi nearly doubled with 98% growth, and ice cream sales climbed 25%. The performance underscores the company’s successful premiumization strategy and growing leadership in higher-margin dairy categories.
The ice cream business emerged as one of the strongest growth engines for Heritage during the quarter. Combined revenue from Alpenvie and GETAWAY crossed Rs. 550 million, registering a remarkable 65% year-on-year increase. Alpenvie recorded 44% growth, while GETAWAY’s differentiated range of high-protein and zero-sugar offerings continued to gain traction among health-conscious consumers. Supporting this momentum, Heritage’s newly commissioned ice cream facility achieved 40% capacity utilisation in its first quarter of operation, enhancing manufacturing efficiency and positioning the company for future expansion.
Heritage also strengthened its premium and nutrition-focused growth platforms through strategic investments. The company acquired the remaining 5.6% stake in Heritage Novandie Foods Limited, making it a wholly owned subsidiary. Novandie’s digital-first high-protein yogurt brand, Livo, has already emerged as one of the top five yogurt brands in modern trade. In addition, Heritage increased its stake in Peanut Butter and Jelly Limited, the company behind the GETAWAY brand, to 71%. The move aligns with Heritage’s ambition to expand its presence in fast-growing nutrition-led categories while leveraging its manufacturing and distribution strengths.
Financially, the company reported consolidated revenue growth of 18% year-on-year to Rs. 13,381 million, the highest quarterly revenue in its history. However, elevated milk procurement costs weighed on profitability. Gross margins declined to 21%, while EBITDA fell 29% year-on-year to Rs. 619 million, resulting in an EBITDA margin of 4.6%. Profit after tax stood at ₹250 million, down 38% compared with the corresponding period last year.
Beyond dairy, Heritage Nutrivet Limited, the company’s wholly owned animal nutrition subsidiary, continued its strong growth trajectory. The business reported revenue of Rs. 728 million, up 37% year-on-year, and generated a profit before tax of ₹20 million during the quarter.
Innovation remained a key growth driver for the company. Heritage launched premium Creamy Shakes in Badam and Mango variants in a distinctive glass bottle format, supported by its first gamified on-pack consumer engagement initiative. Meanwhile, Nourish+ High Protein Paneer has quickly gained consumer acceptance, already accounting for more than 15% of the overall paneer portfolio within a short period of launch, highlighting rising demand for protein-rich and health-focused products.
The quarter also brought notable recognition for the company. Heritage Foods received the IR Excellence Award in the Food & Beverage category from the Investor Relations Society, while Executive Director Mrs. N. Brahmani was featured among Fortune India’s Most Powerful Women 2026.
Commenting on the results, Brahmani Nara, Executive Director, Heritage Foods said, said: “We are pleased to report another quarter of strong execution, with Heritage Foods delivering record quarterly revenue of ₹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 Executive Director continued to say, “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. 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, premiumization and distribution position Heritage to deliver sustainable and profitable longterm growth as industry conditions normalize.”
Heritage has grown into a trusted brand, known for its commitment to purity, freshness, and sustainability. With operations spanning 13 states, Heritage Foods serves millions of consumers, offering a wide range of milk, curd, butter, paneer, and other value-added dairy products. Heritage Foods stands out for its farm-to-home approach, ensuring every product is produced with the highest standards of quality and care.
