Hyderabad, May 12: Heritage Foods Limited, a leading dairy company offering milk and value-added dairy products, announced its financial results for the quarter and financial year ended March 31, 2026, reporting resilient revenue growth despite a challenging operating environment marked by milk shortages, elevated procurement costs, and weak flush season conditions.
The company reported revenue of ₹11,576 million in Q4 FY26, registering a 10% year-on-year growth, while full-year FY26 revenue grew 9% YoY to ₹45,260 million.
Brahmani Nara said the company remained focused on strengthening procurement infrastructure, expanding its distribution network, and scaling high-growth categories. She noted that continued investments in premiumisation, capacity expansion, and value-added products position the company for sustainable long-term growth as industry conditions gradually stabilize.
The company’s consumer business maintained strong momentum during FY26, led by growth across value-added products (VAP), premium categories, and emerging channels. Categories including curd, paneer, consumer fats, and ice creams recorded strong traction during the year.
Value-added products revenue grew 18% YoY to ₹3,957 million in Q4 FY26 and 13% YoY to ₹14,678 million for FY26. VAP contribution improved to 35.5% in Q4 FY26 compared to 32.5% in the corresponding quarter last year, while annual contribution increased to 35.3% from 32.0% in FY25. Including consumer-pack fats, VAP contribution stood at 41.9% in Q4 FY26 and 39.7% for the full year.
The company reported robust growth across key product categories, with paneer volumes increasing 32% YoY in Q4 and 27% YoY during FY26. Ice cream volumes rose 26% YoY in Q4 and 15% YoY for the year, while curd volumes grew 11% YoY in Q4 and 7% YoY in FY26.
Heritage Foods also highlighted strong traction for new product launches, including Livo Yogurts, premium Sampurna A2 Curd, Nourish+ High Protein Paneer, and the Alpenvie Ice Cream range.
However, industry-wide milk shortages and weak flush season conditions led to higher procurement costs. Average landed milk cost increased 8% YoY to ₹46.7 per litre in Q4 FY26, impacting profitability. EBITDA margins contracted by 311 basis points to 4.5%, while EBITDA declined 35% YoY to ₹522 million. Profit after tax for the quarter stood at ₹239 million, down 37% YoY.
Despite supply-side challenges, the company maintained procurement network expansion, though procurement volumes declined 7% YoY to 16.38 LLPD during the quarter. Timely pricing actions and a stronger product mix partially offset inflationary pressures, supporting blended realization growth across milk and value-added products.
The company’s wholly owned subsidiary, Heritage Nutrivet Limited, recorded strong performance during FY26, with revenue rising 33% YoY to ₹2,454 million and profit before tax increasing to ₹206 million.
Emerging channels continued to witness rapid growth, with e-commerce and quick commerce revenues rising 56% YoY, while Fresh Distribution and other emerging channels grew 49% YoY, strengthening urban market penetration.
Heritage Foods also intensified brand-building efforts during the year through strategic campaigns, integration with BIGG BOSS Kannada, and the launch of Certified Organic Cow Milk in Bengaluru to enhance consumer engagement and visibility across key markets.