Heritage Foods Limited has informed the Exchange regarding a press release dated May 11, 2026, titled "Press Release Financial Results for the quarter and year ended March 31, 2026".
HERITGFOOD · price
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Heritage Foods reported Q4FY26 revenue of ₹11,576 million (up 10% YoY) and FY26 annual revenue crossing the ₹45,000 million milestone at ₹45,260 million (up 9% YoY). However, profitability declined significantly with EBITDA down 35% YoY to ₹522 million and PAT down 37% YoY to ₹239 million in Q4. Gross margins compressed by 308 basis points to 22% due to severe milk supply shortages and historic high procurement inflation with average raw milk costs rising 8% YoY to ₹46.67/litre. The company demonstrated resilience with strong consumer business growth: ex-bulk-fats sales grew 12% YoY in Q4, VAP revenue increased 18% YoY to ₹3,957 million, and VAP now contributes 35.5% of total revenue. Value-added categories like paneer (32% YoY), ice cream (26% YoY), and curd (11% YoY) drove growth. Subsidiary Heritage Nutrivet delivered strong 33% revenue growth to ₹2,454 million. The company also recognized a one-time ₹48 million employee cost provision due to new Labour Codes implementation.
While Heritage Foods crossed a major revenue milestone and showed strong consumer business momentum, the sharp decline in profitability due to industry-wide milk inflation and supply challenges is concerning for near-term earnings. The successful premiumization strategy and growing VAP contribution provide structural support, but margins may remain under pressure until milk supply normalizes.