Heritage Foods Limited 's Board of Directors, at its meeting held on May 11, 2026, approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed and recommended by the Audit Committee prior to board approval, with statutory auditors M/s. Walker Chandiok & Co LLP issuing an unmodified opinion on both standalone and consolidated financial results. Pursuant to Regulation 30 and 43 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board also recommended a final dividend of ₹2.50 per equity share of face value ₹5 each (50%) for FY 2025-26, subject to shareholder approval at the ensuing 34th Annual General Meeting. The company crossed the ₹45,000 million annual revenue milestone on a consolidated basis, reporting 9% YoY revenue growth despite severe milk supply-side challenges, elevated procurement inflation, and a weak flush season.

Operational Highlights

Heritage Foods navigated one of the toughest operating environments for the dairy industry in recent years. Average landed milk costs rose to ₹46.7/litre in Q4 FY26, up 8% YoY, reflecting industry-wide supply tightness driven by a weak flush season and lower milk availability across key regions. Procurement volumes remained at 16.38 LLPD in Q4 FY26, falling 7% YoY, while average procurement prices increased 8% YoY to ₹46.67/litre in Q4 FY26 and 7% YoY to ₹44.72/litre in FY26. Despite these headwinds, milk sales volumes grew 1% YoY to 11.73 LLPD in Q4 FY26 and 2% YoY to 11.83 LLPD in FY26, supported by calibrated pricing actions and strong brand demand. Average milk selling prices improved 4% YoY to ₹57.80/litre in Q4 FY26 and 4% YoY to ₹57.13/litre in FY26.

Value-Added Products (VAP) continued to be a key growth driver. VAP revenue grew 18% YoY to ₹3,957 million in Q4 FY26 and 13% YoY to ₹14,678 million in FY26. VAP contribution improved to 35.5% in Q4 FY26 from 32.5% in Q4 FY25, and to 35.3% in FY26 from 32.0% in FY25. Including consumer-pack fats (Ghee and Butter), VAP revenue reached ₹4,668 million, up 22.5% YoY in Q4 FY26, with this broader segment contributing 41.9% to total revenue in Q4 FY26 compared to 36.8% in Q4 FY25, and expanding to 39.7% in FY26 versus 36.7% in FY25. Category-level performance was robust, with paneer volumes growing 32% YoY in Q4 and 27% YoY in FY26, curd volumes rising 11% YoY in Q4 and 7% YoY in FY26, and ice cream volumes increasing 26% YoY in Q4 and 15% YoY in FY26. Emerging channels also scaled rapidly, with E-Commerce and Q-Commerce revenues growing 56% YoY, while Fresh Distribution and other emerging channels grew 49% YoY.

Q4 FY26 Consolidated Financial Snapshot

The following table presents key consolidated financial metrics for Q4 FY26, reflecting the pressure of elevated input costs on margins:

Standalone Financial Performance

On a standalone basis, Heritage Foods reported full-year revenue from operations of ₹44,150.65 million for the year ended March 31, 2026, compared to ₹40,804.81 million in the previous year. Total income for the full year stood at ₹44,387.55 million against ₹41,077.65 million in the prior year. The following table summarises key standalone financial metrics:

Standalone exceptional items for the year ended March 31, 2026 included ₹69.33 million (of which ₹7.79 million pertained to the quarter ended March 31, 2026) received as refund of differential GST liability deposited under protest on the classification of flavoured milk, following a favourable order, and ₹32.02 million reversed from previously accrued liability towards potential interest obligations. Additionally, a provision of ₹5.37 million was recorded as impairment loss on investment in Heritage Novandie Foods Limited (HNFL).

Standalone Segment Performance

As per Ind AS 108, the management has identified Dairy and Renewable Energy as reportable standalone segments. The Dairy segment contributed revenue of ₹44,143.19 million for the full year ended March 31, 2026, compared to ₹40,798.66 million in the prior year. The Renewable Energy segment reported revenue of ₹99.64 million for the year, against ₹87.70 million previously. Segment-wise profit before finance costs, tax, and other unallocable items for the full year was ₹1,862.91 million for Dairy and ₹49.33 million for Renewable Energy.

Consolidated Financial Performance

On a consolidated basis, Heritage Foods reported revenue from operations of ₹45,259.91 million for the year ended March 31, 2026, compared to ₹41,345.95 million in the prior year. Total income for the full year was ₹45,502.21 million against ₹41,624.68 million previously. The consolidated results include subsidiaries Heritage Nutrivet Limited, Heritage Novandie Foods Limited (consolidated as a subsidiary effective June 16, 2025, having been a joint venture until June 15, 2025), and Peanut Butter and Jelly Limited (effective January 5, 2026), as well as associate SKIL Raigam Power (India) Limited.

The consolidated segment structure comprises three reportable segments — Dairy, Renewable Energy, and Feed. For the full year ended March 31, 2026, the Dairy segment reported revenue of ₹44,308.75 million, Renewable Energy contributed ₹99.64 million, and the Feed segment reported ₹2,454.45 million. Segment profit before finance costs, tax, and unallocable items for the year was ₹1,827.55 million for Dairy, ₹49.33 million for Renewable Energy, and ₹198.02 million for Feed. The wholly owned subsidiary Heritage Nutrivet Limited recorded a 33% YoY increase in revenue to ₹2,454 million in FY26, with profit before tax surging to ₹206 million. Feed volumes at Heritage Nutrivet grew 40% YoY in FY26, with revenues up 32% YoY, reflecting sustained demand and strong execution. Dr. Brij Mohan was appointed as Chief Executive Officer of Heritage Nutrivet Limited.

Strategic and Business Developments

Heritage Foods continued to invest in capacity expansion and new product initiatives during the year. An ice cream plant is currently taking shape at Shamirpet, Hyderabad, aimed at supporting the strong volume growth recorded in the ice cream category. The company also launched Organic Cow Milk in Bengaluru, reinforcing its pure milk credentials with a certified organic proposition. On the operational infrastructure front, the company operates with a chilling capacity of 2.6 MLPD and processing capacity of 2.95 MLPD across 18 plants, serving 10 million consumers daily. The distribution network spans 7,500+ distributors, 2,25,000+ retail outlets, 16 e-commerce websites, 859 Heritage Parlors, and 423 Happiness Points. The company has delivered a revenue CAGR of 14% over FY22–FY26.

Management Commentary

Commenting on the results, Mrs. Brahmani Nara – Executive Director, said: "FY26 witnessed one of the toughest operating environments for the dairy industry in recent years, marked by severe milk shortages, elevated procurement inflation and weak flush season. Despite these challenges, Heritage Foods delivered resilient revenue growth of 9% YoY to ₹45,260 million, with quarterly revenues consistently sustaining above the ₹11,000 million mark, reflecting the strength of our consumer patronage and execution capabilities. Our consumer business continued to deliver healthy momentum led by strong growth across Value-added Products, premium categories and emerging channels. Categories such as curd, paneer, consumer fats and ice-creams recorded strong traction, while Q-commerce and Fresh Distribution scaled rapidly, strengthening market penetration and consumer engagement across key regions. Calibrated pricing actions and improving product mix also supported realisation growth during the year. We remained focused on strengthening procurement infrastructure, expanding distribution reach and scaling high-growth categories. With continued investments in premiumisation, new capacities and Value-added Products, we remain well positioned to drive sustainable long-term growth as industry conditions gradually normalise."

Dividend, AGM, and Corporate Developments

Pursuant to Regulation 30 and 43 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board recommended a final dividend of ₹2.50 per equity share of face value ₹5 each (50%) for FY 2025-26, subject to shareholder approval at the 34th Annual General Meeting. The dividend, if approved, will be paid on Thursday, July 30, 2026, subject to deduction of tax at source as applicable. Key dates related to the dividend and AGM are as follows:

The Board also approved the re-appointment of Mr. M P Vijay Kumar (DIN: 05170323) as Non-Executive Independent Director for a second and final term of five consecutive years from November 1, 2026 to October 31, 2031, subject to shareholder approval at the 34th AGM. M/s. Ravi & Subramanyam Company Secretaries, Hyderabad (CP No: 4318), were appointed as scrutinizer for conducting e-voting at the AGM. In a notable corporate development, the company entered into a Share Purchase Agreement in May 2025 to acquire 71,00,000 equity shares of ₹10 each in HNFL from the other joint venture partner for a consideration of ₹85.00 million, with the transaction completed on June 16, 2025. Additionally, in compliance with Ind AS 19, the company recognised a one-time increase in provision for defined benefit obligations of ₹48.07 million as an employee benefit expense, following the Government of India's notification of four Labour Codes on November 21, 2025.

The Independent Directors of Heritage Foods Limited held a dedicated meeting on May 11, 2026, to carry out a comprehensive performance evaluation as part of the company's corporate governance obligations. The meeting covered a review of the performance of the Independent Directors themselves, Non-Independent Directors, the Board as a whole, and its committees.

Key Agenda of the Independent Directors Meeting

The meeting addressed several critical governance parameters, as outlined in the formal communication submitted to the stock exchanges. The following table summarises the key areas reviewed during the meeting:

Formal Disclosure to Stock Exchanges

The outcome of the meeting was formally communicated to both BSE Limited and the National Stock Exchange of India Limited, requesting that the exchanges take the information on record and display it on their respective websites. The disclosure was signed by Umakanta Barik, Company Secretary & Compliance Officer (M. No: FCS-6317), on behalf of Heritage Foods Limited, with the digital signature timestamped at 16:00:10 IST on May 11, 2026.

Heritage Foods Limited, headquartered at Jubilee Hills, Hyderabad, Telangana, holds an ISO 22000 certification and is registered under CIN L15209TG1992PLC014332.