Heritage Foods experienced a 36.7% decrease in consolidated net profit for the fourth quarter of FY26 due to higher milk procurement costs and supply-side challenges, despite a steady revenue increase. The company’s net profit for the January-March quarter was Rs 24.16 crore, down from Rs 38.17 crore in the same period the previous financial year.
In Q4 FY26, revenue from operations grew by 10.4% year-on-year to Rs 1,157.56 crore, compared to Rs 1,048.47 crore in the corresponding quarter of the previous year. However, EBITDA fell by 34.6% to Rs 52.23 crore from Rs 79.88 crore a year earlier, with the EBITDA margin shrinking to 4.5% from 7.6%.
Despite facing milk shortages and high procurement costs during the financial year, Heritage Foods managed to surpass the Rs 4,526 crore annual revenue mark in FY26. The company highlighted that procurement volumes in Q4FY26 decreased by 7% year-on-year to 16.38 lakh litres per day due to industry-wide supply limitations.
The company’s value-added products (VAP) segment continued to be a significant growth driver, with revenue increasing by 18% year-on-year to Rs 396 crore in Q4 FY26 and by 13% to Rs 1,468 crore for the full year. The contribution of value-added products to revenue improved to 35.5% in the March quarter from 32.5% a year ago, and to 35.3% for the full year from 32%.
