Heritage Foods Reports 9% Revenue Growth Amid Milk Cost Surge
Sourse: dairynews.today
Heritage Foods achieved a 9% revenue growth in Q2 FY26, despite challenges such as high milk procurement costs and a nationwide butter shortage. Strategic expansion in value-added products proved crucial.
Heritage Foods Limited showcased impressive resilience, reporting a 9% year-on-year revenue increase to INR 11,125 crore in Q2 FY26. This marks the second consecutive quarter the revenue surpassed INR 11,000 crore, a significant achievement given the extended monsoon, lean milk season, and butter shortage impacting the Indian dairy market. The company's growth is largely attributed to an 18% surge in its Value-Added Products (VAP) segment, which now accounts for 38% of total sales with INR 4,132 crore. Despite an increase in milk procurement costs by 6.3%, which led to a 122 basis point decline in EBITDA margin, efficient cost management enabled a 5% growth in Profit After Tax (PAT). Additionally, operational expansion added 6,000 new retail outlets, enhancing market reach and reinforcing Heritage Foods' position in the dairy sector. Management predicts improved margins entering the flush season, supported by increased marketing spend and product innovation aligned with their Vision 2030 goals.
