Heritage Foods profit drops 38% despite record revenue
Q1 FY27 revenue hits ₹13,381 million, up 18% YoY, but high milk costs compress margins. Value-added products now 44% of sales.
— 2 earlier stories on Heritage Foods Ltd. →What's new
- Record consolidated revenue of ₹13,381 million, up 18% YoY.
- Net profit falls 38% to ₹250 million due to 7% higher milk procurement costs.
- Value-added products revenue grows 39.7% to 44% of sales, led by paneer, curd, and ice cream.
Why this matters
The profit drop is a sharp reminder that dairy margins remain tied to volatile procurement costs. However, the rapid scaling of value-added products provides a buffer and a long-term hedge against commodity swings.
What we're watching
- Milk price trajectory in the upcoming flush season.
- Further margin recovery as procurement costs potentially ease.
- Ice cream business crossing ₹550 million in quarterly revenue under the GETAWAY brand.
The full read
Heritage Foods delivered a record ₹13,381 million in quarterly revenue, up 18% year on year, but the headline is undercut by a 38% profit slide to ₹250 million. The culprit is milk procurement costs rising 7% to ₹46.61 per liter, squeezing gross margins by 260 basis points to 21%. Value added products, including paneer, curd, and ice cream, grew 39.7% and hit a record 44% of sales. The ice cream business alone crossed ₹550 million, up 65%. The acquisitions of Heritage Novandie Foods and Peanutbutter and Jelly stakes were completed. This filing is a routine reiteration of already public results offering no new market moving data. The open question is how quickly milk costs subside to restore margins.
Questions answered
- Why did Heritage Foods' profit fall despite record revenue?
- Milk procurement prices rose 7% YoY to an average of ₹46.61 per liter, compressing gross margins by 260 basis points. That overwhelmed the revenue growth.
- How much did value-added products contribute to revenue?
- Value-added products generated ₹5,636 million, a 39.7% YoY increase, accounting for 44% of overall sales. That is a record share.
- Is the profit decline worse than the prior quarter?
- The 38% drop is consistent with the 34% decline reported in Q4 FY27, suggesting sustained margin pressure.
- What were the two completed acquisitions mentioned?
- Heritage Foods completed the previously announced acquisitions of stakes in Heritage Novandie Foods and Peanutbutter and Jelly during the quarter.
- Did the filing contain any new price sensitive information?
- No. The press release reiterates results already disclosed to exchanges after the board meeting, with only expanded commentary on known data.
Heritage Foods Ltd.
Latest quarter · Jun 2026
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All notes on HERITGFOOD →- 16 Jul 2026 · 4:44 PM IST Heritage Foods profit drops 38% despite record revenue
- 4d ago Heritage Foods' record revenue obscured by margin pressure and low plant utilization
- 5d ago Heritage Foods Q1 profit falls 34% as costs surge