Heritage Foods Limited shareholders overwhelmingly approved a final dividend of ₹2.50 per equity share for FY26, alongside the adoption of audited financial statements and key director re-appointments, during its 34th Annual General Meeting (AGM) held on July 23, 2026. The meeting, conducted via video conferencing from the Hyderabad registered office, concluded with the formal submission of the consolidated scrutinizer’s report to stock exchanges. All resolutions passed with support exceeding 99.7%, reflecting strong stakeholder confidence in the company’s transition to a nutrition-first food enterprise.

The AGM was presided over by Chairperson A. V. Girija Kumar, with Vice Chairperson & Managing Director N. Bhuvaneswari and Executive Director N. Brahmani presenting the business outlook. The statutory auditors, M/s. Walker Chandiok & Co LLP, and secretarial auditors issued unqualified reports. M/s. Ravi & Subramanyam, Company Secretaries, served as the independent scrutinizer for the remote e-voting and instapoll process conducted under Section 108 of the Companies Act, 2013 and Regulation 44 of SEBI LODR Regulations. The cut-off date for voting eligibility was July 15, 2026.

Voting Results Overview

Shareholders voted on five resolutions: four ordinary items concerning financial statements, dividend declaration, and director rotation, and one special item for the re-appointment of an independent director. The promoter group, holding 38,327,742 shares, voted in favor of all resolutions. Public institutional and non-institutional investors also showed high participation rates, with total votes polled representing approximately 60.7% of outstanding shares.

Detailed Resolution Analysis

The dividend resolution received 5,63,42,275 votes in favor out of 5,63,42,320 polled, with only 45 votes cast against. Similarly, the adoption of standalone and consolidated financial statements for the year ended March 31, 2026, secured nearly unanimous approval, with just 74 votes against each. The re-appointment of the director retiring by rotation saw slightly higher dissent, with 1,048 votes against, primarily from public non-institutional investors.

The special resolution to re-appoint Mr. Muthu Raju Paravasa Raju Vijay Kumar as a Non-Executive Independent Director passed with 99.7861% support. While the promoter group voted entirely in favor, public institutional investors cast 1,19,458 votes against this specific resolution, accounting for the majority of the dissenting votes. Despite this, the resolution comfortably met the requisite majority threshold under the Companies Act.

Governance and Compliance

The voting process utilized National Securities Depository Limited (NSDL) as the service provider for remote e-voting from July 20 to July 22, 2026, and instapoll during the AGM. The scrutinizer unblocked the votes in the presence of two independent witnesses not employed by the company, ensuring procedural integrity. The results have been uploaded to the company’s website and submitted to BSE and NSE as per regulatory requirements.

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.