Heritage Foods Reports Strong Q3 FY26 Revenue Amid Dairy Sector Challenges

Heritage Foods Limited has reported consolidated revenue of ₹11,192 million (~$134 million USD) for the quarter ending December 31, 2025, marking an 8% increase compared to the previous year. This growth comes amid challenges such as significant raw milk shortages and increased input costs.

The company's strategic focus on value-added dairy products (VAP), including ghee, butter, curd, lassi, and paneer, has been a key driver, with the VAP segment recording a 13.8% increase to ₹3,271 million (~$39.2 million USD). Consumer fats like ghee and butter saw a 22.6% surge in sales.

Amidst erratic weather conditions, milk procurement dropped by 9% year-on-year to 16.73 LLPD, while milk sales increased by 2.1% to 11.94 LLPD. The average milk realization rose by 4.9% to ₹57.31 per liter (~$0.69 USD), and procurement costs increased 9% to ₹45.55 per liter (~$0.55 USD).

Heritage Foods is preparing for peak season demand with expansions at its Shamirpet Ice Cream Plant and a new Flavoured Milk Plant, both expected to launch commercially in Q4 FY26. These expansions aim to support the growing demand for high-growth dairy beverages and frozen desserts.

Additionally, Heritage Nutrivet Limited, the animal nutrition arm of the group, reported a 27% year-on-year revenue increase to ₹645 million (~$7.7 million USD). The company also recognized a one-time employee benefit expense of ₹27.78 million (~$0.33 million USD) due to new Labour Code guidelines.

Mrs. Brahmani Nara, Executive Director, commented on the quarter's performance, highlighting strong execution and a focused push on value-added categories despite challenges such as milk shortages and elevated procurement costs.