Heritage Foods Crosses ₹13,000 Million Quarterly Revenue Milestone Amid Elevated Milk Inflation; Value-Added Products Reach Record 44% Contribution

Heritage Foods Limited (BSE: 519552; NSE: HERITGFOOD), one of India's leading dairy enterprises, today announced its consolidated financial and operational results for the first quarter of fiscal year 2027 ended June 30, 2026. The company achieved its highest-ever quarterly revenue milestone, driven by broad-based volume growth in its premium portfolio and a strong performance in the ice cream segment, successfully navigating an inflationary raw material environment.

Record Consolidated Financial Performance and Portfolio Premiumization

Heritage Foods delivered a strong top-line performance, with consolidated revenue expanding by 18% year-on-year (YoY) to reach ₹13,381 million in Q1 FY27. This milestone was underpinned by the accelerated execution of the company's premiumization strategy, shifting its product mix toward high-margin consumer offerings.

A primary growth driver was the Value-Added Products (VAP) portfolio, which saw revenues surge 39.7% YoY to ₹5,636 million. Excluding consumer brands in ghee and butter, the core VAP segment expanded its contribution to a record high of 44% of overall revenues, up from 36% in Q1 FY26.

When including consumer-pack fats, the total consumer portfolio revenue grew 39.3% YoY to ₹6,322 million, representing a record 49% of total corporate revenues compared to 41% in the corresponding quarter of the previous fiscal year.

The company's animal nutrition subsidiary, Heritage Nutrivet Limited, sustained its growth trajectory by generating ₹728 million in revenue during the quarter. This represents a robust 37% YoY increase, with the subsidiary reporting a Profit Before Tax (PBT) of ₹20 million.

Procurement Stability and Strategic Farmer Focus

The quarter was defined by intense industry-wide raw milk shortages and elevated procurement costs. Average landed milk procurement prices increased by 7.2% YoY to ₹46.61 per liter, presenting one of the most highly inflationary environments seen by the domestic dairy industry in recent years.

In response, Heritage Foods consciously prioritized long-term supply continuity and farmer engagement over short-term cost optimization. By reinforcing its collection network through a farmer-first approach, the company successfully grew its milk procurement volumes by 2% YoY to an average of 18.10 Lakh Liters Per Day (LLPD), ensuring uninterrupted raw material availability for its consumer operations.

Pricing Power, Volume Tractions, and Core Category Highlights

To mitigate raw material pressure, the company executed calibrated price increases across its liquid milk portfolio. The average milk selling price rose 4% YoY to ₹58.68 per liter. Despite these adjustments, consumer demand remained healthy, allowing liquid milk sales volumes to hold steady at 11.62 LLPD while supporting volume-led expansion across core value-added segments.

Individual product categories within the VAP business demonstrated strong volume growth:

Lassi & Buttermilk: Led the portfolio with volume surges of 98% and 60% YoY, respectively.

Paneer & Curd: Paneer volumes advanced 33% YoY, maintaining its long-term growth trajectory. Curd delivered its strongest volume growth in recent years, rising 26% YoY.

Ice Cream Business: Total revenue for the ice cream segment crossed ₹550 million during Q1 FY27, marks a significant 65% YoY growth. The core mass-premium brand, Alpenvie, grew 44% YoY, while the health-focused GETAWAY portfolio, specializing in high-protein and zero-sugar variants, expanded rapidly.

Growth in the ice cream category was further supported by the company's newly commissioned manufacturing facility, which reached 40% capacity utilization during the quarter. Servicing both Alpenvie and GETAWAY portfolios from a unified manufacturing footprint accelerated capacity absorption and improved corporate operating leverage.

Product Innovation and Digital Consumer Engagement

Heritage Foods continued to build on its innovation-led strategy with the launch of premium Creamy Shakes in Badam and Mango variants. The product debuted in a unique glass bottle format, supported by the company's first on-pack gamified digital consumer engagement platform to deepen brand stickiness.

Recent additions to the functional nutrition space also gained swift market traction. The newly introduced Nourish+ High Protein Paneer achieved immediate consumer acceptance, already contributing over 15% of the company's total paneer portfolio within a short period following its launch.

Corporate Acquisitions and Strategic Consolidations

The enterprise finalized two key equity transactions during the quarter to streamline its corporate structure and fast-track premium category expansions:

Novandie Foods Consolidation: Heritage Foods acquired the remaining 5.6% equity stake in Heritage Novandie Foods Limited, turning it into a wholly owned subsidiary. The brand's digital-first, high-protein yogurt label, 'Livo', has entered the top 5 yogurt brands within modern organized trade channels.

GETAWAY Stake Increase: The company raised its equity ownership to 71% in Peanut Butter and Jelly Limited (the parent entity of the better-for-you brand GETAWAY), advancing its pre-agreed investment roadmap. While the founders remain actively involved in driving product innovation, brand building, and customer acquisition, the business will leverage Heritage's extensive distribution network and back-end manufacturing infrastructure to scale operations across nutrition-led consumer categories.

Executive Leadership and Investor Recognitions

The company's governance and investor communication practices received significant industry recognition during the quarter. Heritage Foods was honored with the IR Excellence Award in the Food & Beverage category by the Investor Relations Society.

Concurrently, Mrs. N. Brahmani, Executive Director of Heritage Foods Limited, was named among Fortune India's Most Powerful Women 2026, recognizing her corporate leadership and strategic steering of the enterprise through changing consumer and macroeconomic landscapes.

Commenting on the Results, Mrs. Brahmani Nara - Executive Director, said: "We are pleased to report another quarter of strong execution, with Heritage Foods delivering record quarterly revenue of ₹13,381 million, up 18% YoY, while our value added products portfolio, reached an all-time high contribution of 44% of revenues. This performance reflects the strength of our integrated dairy model, resilient consumer franchise, expanding Value-Added Products portfolio and disciplined execution across the value chain.

The quarter was marked by elevated milk procurement costs and constrained milk availability across the industry. Despite these headwinds, we prioritized strengthening our procurement ecosystem, expanding market share and accelerating the growth of our Value-Added Products portfolio, even as input cost inflation temporarily weighed on profitability.

Our ability to increase milk procurement volumes, take calibrated pricing actions and deliver strong, broad-based volume growth across key Value-Added Product categories underscores the strength of our farmer network, brands and route-to-market capabilities. We also strengthened our premium growth platforms by making Heritage Novandie Foods Limited a wholly owned subsidiary and increasing our stake in Peanutbutter and Jelly Limited. We remain confident that our continued investments in procurement, innovation, premiumization and distribution position Heritage to deliver sustainable and profitable longterm growth as industry conditions normalize."

Shares of Heritage Foods Limited was last trading in BSE at Rs. 335.50 as compared to the previous close of Rs. 334.55. The total number of shares traded during the day was 14185 in over 535 trades.

The stock hit an intraday high of Rs. 342.10 and intraday low of 332.20. The net turnover during the day was Rs. 4774248.00.

Source : Equity Bulls

Keywords

HeritageFoods INE978A01027 Q1FY27 Q1FY2027 ResultUpdate