Heritage Foods Limited on Thursday reported a 38.6 per cent year-on-year (YoY) decline in consolidated net profit for the quarter ended September 2026 (Q2 FY27), as rising milk procurement costs put pressure on profitability despite healthy revenue growth and strong demand across its value-added products portfolio.
The dairy company posted a consolidated net profit of Rs 31.3 crore during the quarter, compared with Rs 51 crore in the corresponding period last financial year (Q2 FY26), according to its stock exchange filing. Revenue from operations, however, increased 18.6 per cent year-on-year to Rs 1,320 crore from Rs 1,113 crore, driven by growth in its core milk business and continued traction in value-added products.
EBITDA declined 4.4 per cent to Rs 73.8 crore from Rs 77.2 crore in the year-ago quarter, while EBITDA margin narrowed to 5.6 per cent from 6.9 per cent. According to the company, the margin pressure stemmed largely from higher milk procurement costs.
The average milk procurement price rose 11 per cent year-on-year to Rs 47.73 per litre, up by Rs 4.74 per litre from the previous year. Heritage Foods attributed the increase to robust market demand, limited improvement in milk supply and elevated feed and fodder costs.
Despite supply constraints during the monsoon season, the company recorded 7 per cent growth in milk procurement volumes in the September quarter and 4 per cent growth during the first half of FY27. It said efforts are underway to deepen engagement with farmers and expand procurement networks across villages to improve milk availability.
The company’s milk business revenue grew 8.5 per cent year-on-year during the quarter, supported by a 2.5 per cent increase in volumes, healthy demand in key markets and calibrated price hikes. Average milk realisation improved 6 per cent to Rs 60.34 per litre. Heritage Foods also witnessed robust growth across its value-added products segment.
Revenue from lassi surged 91 per cent year-on-year, while ice cream revenue rose 81 per cent, buttermilk 66 per cent, paneer 38 per cent and curd 26 per cent. Volume growth remained strong across categories as well, with lassi volumes rising 89 per cent, buttermilk 56 per cent, ice cream 44 per cent, paneer 21 per cent and curd 15 per cent during the quarter.
