Heritage Foods Q4 FY26 Revenue Grows 10% to INR 11,576 Mn
Heritage Foods Limited discussed its Q4 FY26 performance, highlighting a 10% YoY revenue increase to INR 11,576 million despite industry-wide supply constraints and inflation. Value-added products grew 18% YoY, contributing 35.5% to revenue. The company is expanding capacity in ice cream and flavoured milk, with future CAPEX focused on paneer and ghee. Management remains cautiously optimistic for FY27, citing improving milk availability and pricing actions.
*this image is generated using AI for illustrative purposes only.
Heritage Foods Limited held a conference call with investors and analysts on May 12, 2026, to discuss the audited financial results for the quarter and year ended March 31, 2026. The call was hosted by Go India Advisors and Chorus Call, with key management members including Mrs. Brahmani Nara – Executive Director, Dr. M. Sambasiva Rao – Whole Time Director, and Mr. Srideep Kesavan – Chief Executive Officer in attendance. The company confirmed that no Unpublished Price Sensitive Information was disclosed during the proceedings.
Operational Performance Review
Management addressed the challenging operating environment characterized by tight milk supply and elevated procurement inflation. Consolidated revenue for Q4 FY26 grew 10% year-on-year to INR 11,576 million, while full-year revenue reached INR 45,260 million. Despite these pressures, EBITDA for the quarter stood at INR 522 million with a margin of 4.5%, and Profit After Tax was INR 230 million. Milk procurement volumes declined 7% year-on-year to 16.38 lakh liters per day, with average procurement prices increasing 8% year-on-year to INR 46.67 per liter in Q4. However, milk sales volumes grew 1% year-on-year to 11.73 lakh liters per day, supported by calibrated pricing actions that saw average selling prices improve 4% year-on-year to INR 57.80 per liter.
Strategic Growth and Outlook
Value-added products (VAP) remained a key growth driver, with revenues growing 18% year-on-year during Q4. The contribution of VAP to overall revenues increased to 35.5% in Q4 FY26 from 32.5% in the corresponding period last year. Management noted that the Hyderabad ice-cream facility has moved into the production phase, and a flavoured milk plant in Tirupati is nearing full operationalisation. Regarding future expansion, the CEO indicated that the company aims to increase VAP contribution by 2%-2.5% year-on-year, targeting a 50% revenue share in approximately four years. The median EBITDA margin is expected to trend towards high single digits (around 9%) as the mix improves and operating leverage is realized.
Q&A Session Highlights
During the Q&A session, management provided insights into market conditions and capital allocation. The CEO confirmed that the cow milk flush has started, improving supply, though prices have yet to soften significantly. On capital expenditure, the company spent approximately INR 300 crores on plant production capacity expansion, primarily on the Greenfield ice cream facility and flavoured milk line. Future CAPEX is expected to be around INR 200 crores, focusing on paneer and ghee capacity expansion. Management also addressed receivables, which peaked in March due to modern trade salience but have since normalized, and reiterated the strategy to deepen presence in core regions rather than spreading thin geographically.
| Metric | Q4 FY26 | FY26 |
|---|---|---|
| Consolidated Revenue (INR Mn) | 11,576 | 45,260 |
| EBITDA (INR Mn) | 522 | - |
| EBITDA Margin (%) | 4.5 | - |
| Profit After Tax (INR Mn) | 230 | - |
| Milk Procurement Volume (lakh liters/day) | 16.38 | - |
| Milk Sales Volume (lakh liters/day) | 11.73 | - |
Historical Stock Returns for Heritage Foods
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.84% | -2.42% | -11.56% | -33.59% | -28.23% | +57.59% |
Given that procurement prices have yet to soften despite the flush season commencing, how long could elevated input costs persist before Heritage Foods sees meaningful EBITDA margin recovery toward its 7%-8% median target in FY27?
With national dairy brands increasingly entering Heritage's core southern geographies, what specific competitive moats or pricing strategies could Heritage deploy to defend its liquid milk market share without sacrificing volume growth?
As Heritage targets INR 500 crores in ice cream revenue by FY30 from a nascent base, how might the Get-A-Way acquisition's high-protein, zero-sugar positioning differentiate it in an increasingly crowded premium ice cream segment against established players?
17
Create Custom Screeners 
Access 200+ Pre-built Filters 
Use 50+ Readymade Screener 
