Milk procurement volume
16.38 lakh LPD
-7% YoY
Reflects persistent supply-side constraints across the industry.
HERITAGEFOODS
Consumer
01 May 2026
Heritage Foods Ltd — Q4 FY26
Heritage Foods reported Q4 FY26 revenue of ₹1,157.6 crore, up 10% YoY, driven by resilient consumer demand and strong value-added product (VAP) growth of 18% YoY.
✓ Verified against BSE filing
2-Min Summary
✦ AI-Generated from Full Transcript
Heritage Foods reported Q4 FY26 revenue of ₹1,157.6 crore, up 10% YoY, driven by resilient consumer demand and strong value-added product (VAP) growth of 18% YoY. EBITDA margin contracted to 4.5% due to unprecedented procurement inflation (milk prices up 8% YoY). PAT stood at ₹23 crore. Milk volumes grew only 1% YoY as price increases muted demand, while VAP contribution rose to 35.5% of revenue. Management guided for continued price increases in Q1 FY27 and expects margin recovery as cow flush improves supply. Capex for FY27 is guided at ~₹200 crore. Key risk: below-normal monsoon could prolong supply tightness and keep margins under pressure.
Key Numbers
Milk sale volume
11.73 lakh LPD
+1% YoY
Muted growth due to aggressive price increases to offset procurement inflation.
Value-added products revenue growth
18% YoY
+18% YoY
Driven by curd, paneer, ghee, ice creams; VAP share now 35.5% of revenue.
Average milk procurement price
₹46.67/L
+8% YoY
Industry-wide milk inflation; landed cost includes farmer price and collection expenses.
Management Guidance
Capex of ~₹200 crore for FY27
Primarily for expanding paneer and ghee capacity, plus regular maintenance capex.
Management guidance capexVAP contribution to increase 2-2.5% per year
Target to reach 50% of revenue in ~4 years, driven by premiumization and new products.
Management guidance growthIce cream facility utilization 35-40% in first year
New Hyderabad plant; full utilization expected in 6-7 years with 20-25% annual growth.
Management guidance growthMedian EBITDA margin target of ~9%
Aiming to improve median margin from ~7% to high single digits through VAP mix and operating leverage.
Management guidance marginsKey Risks
Below-normal monsoon risk
El Niño predictions could impact fodder availability and milk production, prolonging supply tightness.
high · analyst_questionCompetition intensity in milk
National brands entering south markets and cooperatives' pricing actions could pressure volumes and margins.
medium · management_commentaryNorth/Mumbai regions remain unprofitable
These regions are still in ramp-up stage; breakeven expected only in FY27 at earliest.
medium · management_commentaryReceivables increase due to organized trade
Trade receivables rose to ₹64.8 crore (from ₹37.5 crore) as modern trade share grows; though largely collected post-quarter.
low · data_observationNotable Quotes
Despite one of the toughest operating environments witnessed by the dairy industry in recent years, Heritage Foods delivered resilient revenue performance in Q4 of FY26.
We are taking very strong positions in certain value added product categories. For example, we are already nationally top five players in curd, buttermilk, paneer, yogurts, ice cream.
Our objective is to take the median towards a high single digit which is about 9%. So that in a bad year our EBITDA will be around 6.5-7% and in a good year we'll even cross 10 or 11 percentage.
Frequently Asked Questions
What was Heritage Foods's revenue in Q4 FY26?
Heritage Foods reported revenue of ₹1,158 Cr in Q4 FY26, representing a +10% change compared to the same quarter last year.
What guidance did Heritage Foods management give for FY27?
Capex of ~₹200 crore for FY27: Primarily for expanding paneer and ghee capacity, plus regular maintenance capex. VAP contribution to increase 2-2.5% per year: Target to reach 50% of revenue in ~4 years, driven by premiumization and new products. Ice cream facility utilization 35-40% in first year: New Hyderabad plant; full utilization expected in 6-7 years with 20-25% annual growth. Median EBITDA margin target of ~9%: Aiming to improve median margin from ~7% to high single digits through VAP mix and operating leverage.
What are the key risks for Heritage Foods in FY27?
Key risks include Below-normal monsoon risk — El Niño predictions could impact fodder availability and milk production, prolonging supply tightness.; Competition intensity in milk — National brands entering south markets and cooperatives' pricing actions could pressure volumes and margins.; North/Mumbai regions remain unprofitable — These regions are still in ramp-up stage; breakeven expected only in FY27 at earliest.; Receivables increase due to organized trade — Trade receivables rose to ₹64.8 crore (from ₹37.5 crore) as modern trade share grows; though largely collected post-quarter..
Did Heritage Foods meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Heritage Foods Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary verified against official BSE/NSE filings.