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Milk procurement prices may harden further
View Risks →Heritage Foods Limited — Q3 FY26
Heritage Foods reported a resilient Q3 FY26 with consolidated revenue of ₹1,119 crore, up 8% YoY, driven by steady demand and value-added product (VAP) growth.
bearish
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Heritage Foods reported a resilient Q3 FY26 with consolidated revenue of ₹1,119 crore, up 8% YoY, driven by steady demand and value-added product (VAP) growth. However, EBITDA margin compressed to 5.6% (down ~180bps YoY) due to a sharp 9% YoY increase in milk procurement prices, outpacing price realizations. Milk procurement volumes declined 9% YoY to 16.73 lakh liters/day, the first drop in years, as excess rainfall hurt animal productivity. VAP revenues grew 22.6% YoY, contributing 38% of total revenue (vs 33.9% last year). Management expects margins to normalize as supply conditions improve and summer demand boosts higher-margin products like curd and ice cream. The Hyderabad ice cream plant is on track for commercial commissioning in Q4. Key risk: procurement prices may harden further in the near term, delaying margin recovery.
हेरिटेज फूड्स ने तीसरी तिमाही में 1,119 करोड़ रुपये का राजस्व कमाया, जो पिछले साल से 8% ज्यादा है। दूध खरीद की कीमतों में 9% की बढ़ोतरी हुई, जिससे मुनाफा कम हुआ और EBITDA मार्जिन घटकर 5.6% रह गया। दूध की खरीद में भी 9% की गिरावट आई, क्योंकि ज्यादा बारिश से पशुओं की उत्पादकता प्रभावित हुई। वैल्यू-एडेड प्रोडक्ट्स (जैसे दही, आइसक्रीम) की बिक्री 22.6% बढ़ी, जो अब कुल राजस्व का 38% है। कंपनी को उम्मीद है कि गर्मियों में मांग बढ़ने से मार्जिन सुधरेगा। हैदराबाद में आइसक्रीम प्लांट अगली तिमाही में शुरू होगा। लेकिन अगर दूध की कीमतें और बढ़ीं, तो मुनाफा सुधरने में देर हो सकती है।
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Milk procurement volume (Q3)
16.73 lakh liters/day
-9% YoY
First decline in several years due to supply constraints from excess rainfall.
Milk sales volume (Q3)
11.94 lakh liters/day
+2.1% YoY
Steady demand despite price hikes; net realization improved to ₹57.31/liter.
Value-added product revenue share
38%
+4.1pp YoY
VAP revenues grew 22.6% YoY, driven by curd, paneer, ghee, and ice cream.
Ice cream growth (Q3)
21% YoY
+21% YoY
Strong growth ahead of summer; new Hyderabad plant to add capacity.
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Guidance and risk preview
Management reiterated a targeted EBITDA margin range of 7-9%, expecting margins to normalize from current lows as supply conditions improve and ope...
Management expects procurement prices to increase in the next 30-45 days before easing with the mini flush in May, potentially delaying margin reco...
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