Heritage Foods Limited has informed the Exchange about Investor Presentation
HERITGFOOD · price
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Awaiting price reaction for this filing.
Heritage Foods shared its Q1 FY26 investor presentation reporting its highest-ever quarterly consolidated revenue of ₹11,368 Mn, up 10% YoY. However, profitability took a hit — EBITDA fell 21% YoY to ₹739 Mn with margins contracting 258 bps to 6.5%, and PAT dropped 31% to ₹405 Mn. Milk procurement reached a peak of 1.8 MLPD (up 10%), while milk sales grew 2.8% to 1.16 MLPD at an average price of ₹56.4/L. Value-Added Products revenue rose 5.5% to ₹4,034 Mn but its share slipped to 36.1% from 37.5%, hurt by unseasonal rains in April–May. The company increased its stake in yogurt JV Heritage Novandie Foods (HNFPL) from 50% to 94.4%, and its greenfield ice cream plant at Shamirpet remains on track. FY25 metrics showed 25% gross margin, 8% EBITDA margin, 0.18 Net Debt/Equity, and 24.3% ROCE with a 16% revenue CAGR over FY22–FY25.
Despite a revenue milestone, sharp margin compression and PAT decline of ~31% are negatives for near-term sentiment. However, management's confidence in VAP-led margin recovery, JV consolidation in yogurt, and ice cream expansion could support the long-term thesis; expect some volatility around weak Q1 numbers.