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Heritage Foods slumps as Q1 PAT tanks 31% YoY to Rs 41 crore

17-Jul-25 16:00 Hrs IST

However, revenue from operations jumped 10.08% year on year to Rs 1,136.8 crore in Q1 FY26.

Profit before tax was at Rs 54.94 crore in the first quarter of FY25, down of 29.95% as against Rs 77.77 crore posted in Q1 FY25.

EBITDA jumped 21% YoY to Rs 73.90 crore, while EBITDA margin to 6.5% during the quarter under review.

Total expenses jumped 13.23% YoY to Rs 1,085.8 crore in Q1 FY26 as compared with Rs 958.90 crore in Q1 FY25. Cost of materials consumed was at Rs 807.25 crore (up 9.86% YoY) while employee benefits expenses stood at Rs 84.16 crore (up 11.79% YoY) during the quarter.

On the segmental front, revenue from dairy was at Rs 1,118.8 crore (up 9.75% YoY), feed revenue was at Rs 53.25 crore (up 26.21% YoY), and revenue from renewable energy stood at Rs 2.88 crore (up 20.50% YoY) during the quarter.

In Q1FY26, milk sales grew 2.8% year-on-year to 11.6 lakh litres per day (LLPD), supported by continued market expansion and robust brand traction.

The average realisation rose to Rs 56.4 per litre, up from Rs 54.8 a year ago, marking a 2.9% increase on the back of stable pricing and strong market positioning.

The company's value-added products (VAP) reported a 5.5% year-on-year growth in revenue to Rs 403.40 crore in Q1FY26, despite weather-related headwinds. Most VAP categories recorded YoY gains, underscoring sustained consumer demand. VAP (excluding fats) contributed 36.1% to total revenue.

The value-added products (VAP) segment, including consumer packs of ghee and butter, reported revenue of Rs 4,540 crore, registering a 7.4% year-on-year growth. With this expansion, the segment now contributes 40.6% to the company's total revenue, underscoring strong consumer traction in branded dairy offerings.

Commenting on the Results, Brahmani Nara, executive director, said: 'We are happy to report a 10% growth in Q1 of FY26, delivering our highest-ever quarterly revenue of Rs 11,368 millions, despite severe inclement weather a testament to the strength of our brand portfolio and robust milkprocurement system. While unseasonal rains in April'May temporarily impacted demand for valueadded products and weighed on profitability, June marked a healthy recovery.

Importantly, the fundamentals of our business and the long-term growth drivers remain robust. Our upcoming Greenfield ice cream project is progressing on track, and we continue to build momentum across our brands and deepen partnership with our customers.

With highest consumer loyalty in our core markets and a steadily expanding network, we are well-positioned to accelerate growth in the quarters ahead. As we scale innovations and execution, we remain firmly rooted in our founding principles of transparency, quality, and farmer empowerment.'

Meanwhile, the company's, wholly owned subsidiary, Heritage Nutrivet delivered a strong performance with revenue rising 26% year-on-year to Rs 53.30 crore. Profit before tax surged 130% YoY to Rs 6.7 crore, driven by improved operational efficiency and a sharp strategic focus.

Heritage Foods is one of the largest private sector dairy enterprises in southern India. Its milk and milk products have a market presence in Andhra Pradesh, Telangana, Karnataka, Kerala, Tamil Nadu, Maharashtra, Odisha, NCR Delhi, Haryana, Rajasthan, Uttarakhand, and Uttar Pradesh.