Heritage Foods Q1FY27 revenue rises 17.71%, profit falls 38.42%
Heritage Foods reported a 17.71% YoY increase in consolidated revenue to ₹13,445.03 million for Q1FY27, while net profit fell 38.42% to ₹249.71 million. EBITDA declined 16.28% to ₹610 million. The Board approved acquiring additional stakes in subsidiaries Peanutbutter and Jelly Limited and Heritage Novandie Foods Limited. Management highlighted that value-added products revenue grew 40% YoY to ₹5,636 million, driven by volume growth, contributing a record 44% to consolidated revenues. Milk procurement prices increased 7% YoY to ₹46.61 per liter.
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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.
| Metric | Q1FY27 (₹ Mn) | Q1FY26 (₹ Mn) | Change (YoY) |
|---|---|---|---|
| Total Income from Operations | 13,445.03 | 11,420.27 | Increase |
| Net Profit (after tax) | 249.71 | 405.46 | Decline |
| EBITDA | 610.00 | 739.00 | Decline |
| Earnings Per Share (Basic) (₹) | 2.72 | 4.37 | Decline |
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.
Historical Stock Returns for Heritage Foods
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.58% | +0.51% | +9.06% | +3.87% | -21.01% | +49.75% |
How does Heritage Foods plan to mitigate the rising procurement costs that are currently pressuring operating margins?
What synergies and revenue contributions are expected from the full integration of Peanutbutter and Jelly Limited and Heritage Novandie Foods Limited?
Will the company continue to prioritize the shift toward value-added products, and what is the long-term target for their revenue mix?
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