Heritage Foods Limited declared a final dividend of ₹2.50 per equity share for the financial year ended March 31, 2026, during its 34th Annual General Meeting held on July 23, 2026. The dividend, equivalent to 50% of the face value of ₹5 each, was approved alongside the adoption of the audited standalone and consolidated financial statements for the same period. The meeting, conducted via video conferencing, saw the participation of 92 members and concluded with the passage of all proposed resolutions.

The AGM was presided over by Sri A. V. Girija Kumar, Chairperson and Non-Executive Independent Director. Key management personnel, including Smt. N. Bhuvaneswari, Vice Chairperson & Managing Director, and Smt. N. Brahmani, Executive Director, were present at the registered office in Hyderabad. The statutory auditors' and secretarial auditors' reports were unqualified, containing no adverse observations.

Business Performance and Outlook

Smt. N. Bhuvaneswari presented the business performance for FY 2025-26, while Smt. N. Brahmani detailed the growth of wholly-owned subsidiary Heritage Nutrivet Limited and other subsidiaries, Heritage Novandie Foods Limited and Peanutbutter and Jelly Limited. The Chairperson outlined the company's strategy to evolve from a dairy company into a nutrition-first food enterprise, emphasizing sustainability and robust corporate governance as pillars for long-term value creation.

Resolutions Passed

The shareholders approved five resolutions, covering both ordinary and special business. The proceedings confirmed the re-appointment of a director retiring by rotation and the re-appointment of Mr. Muthu Raju Paravasa Raju Vijay Kumar as a Non-Executive Independent Director.

Remote e-voting was conducted by National Securities Depository Limited (NSDL) from July 20, 2026, to July 22, 2026. The combined results of the remote e-voting and e-voting during the AGM will be available on the company's website and the stock exchanges.

Heritage Foods reported a 17.71% year-on-year increase in consolidated revenue to ₹13,445.03 million for the quarter ended June 30, 2026 (Q1FY27), while profitability declined significantly. The company's net profit for the period fell 38.42% to ₹249.71 million, compared to ₹405.46 million in the same quarter of the previous year, reflecting pressure on operating margins despite top-line growth. The Board of Directors also approved the acquisition of additional stakes in two subsidiaries, Peanutbutter and Jelly Limited and Heritage Novandie Foods Limited, to strengthen its market presence.

Q1FY27 Consolidated Financial Performance

The unaudited financial results, reviewed by the Audit Committee and approved by the Board of Directors on July 16, 2026, highlight a divergence between revenue growth and profitability. EBITDA for the quarter declined 16.28% to ₹610 million from ₹739 million in Q1FY26.

Strategic Acquisitions Approved

The Board approved the acquisition of an additional 20% equity stake in Peanutbutter and Jelly Limited (PBJL), a subsidiary engaged in the healthy desserts business. This acquisition, for a cash consideration of ₹7.20 crore, will increase Heritage Foods' shareholding from 51% to 71%. The transaction is expected to be completed within 30 days, subject to conditions precedent. Additionally, the Board approved acquiring the remaining 5.60% equity stake in Heritage Novandie Foods Limited (HNFL), a manufacturer of flavoured yogurt products, for an undisclosed amount. This move will make HNFL a wholly-owned subsidiary of the company, with completion expected within 45 days.

Standalone Results

Standalone revenue for Q1FY27 rose to ₹12,980.42 million from ₹11,241.79 million in the year-ago period. Net profit after tax for the standalone entity stood at ₹247.70 million, down from ₹377.58 million in Q1FY26. The company filed these results with the stock exchanges under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Walker Chandiok & Co LLP provided the Independent Auditor's Review Report on the financial results.

Management Commentary on Q1FY27 Performance

During the earnings call held on July 17, 2026, management noted that the financial year began with disciplined execution, delivering the highest quarterly revenue in the company's history. Consolidated revenue increased 18% year-on-year to ₹13,381 million, while EBITDA stood at ₹619 million with a margin of 4.6%. Profit after tax was ₹150 million, translating into a PAT margin of 1.9%.

Value-Added Products Drive Growth

Value-added products (VAP) revenues grew 40% year-on-year to ₹5,636 million, driven by healthy volume growth across categories. Paneer volumes grew 33%, curd 26%, ice cream 25%, buttermilk 60%, and lassi 98%. Consequently, VAP contributed a record 44% of consolidated revenues compared to 36% in the corresponding quarter last year. The broader VAP portfolio, including consumer pack ghee and butter, grew 39% year-on-year to ₹6,322 million, contributing 49% of consolidated revenues.

Procurement and Operational Metrics

Milk procurement prices increased 7% year-on-year to ₹46.61 per liter, while procurement volumes rose 2% to 18.10 lakh liters per day. Average milk sale prices improved 4% year-on-year to ₹58.68 per liter. The ice cream business crossed ₹550 million, growing 65% year-on-year, with the newly commissioned facility reaching approximately 40% capacity utilization. Heritage Nutrivet reported revenue of ₹728 million, a growth of 37% year-on-year, with a PBT of ₹20 million.