Heritage Foods – a stock market listed company, reported resilient full year FY26 and Q4′ FY 2026 performance despite one of the toughest operating environments faced by India’s dairy industry in recent years. The company posted 10% year-on-year revenue growth in Q4FY26 to ₹11,576 million and crossed ₹45,000 million in annual revenue for FY26. The stock market, however, wasn’t enthused by performance and stock is down around 7% at the time of this post.
As part of industry wide persistent pain, the company highlighted severe milk supply shortages, elevated procurement costs and relatively weaker flush season conditions across major dairy-producing regions of India.
Key highlights:
- Average milk procurement costs rose 8% YoY to ₹46.7/litre and the trend is expected to remain towards higher procurement prices
- Consequently EBITDA margins contracted to 4.5%
- Procurement volumes declined 7% YoY
- Value-added products (VAP) revenue grew 18% YoY in Q4FY26
- Paneer volumes rose 32%
- Ice cream volumes increased 26%
The company said premiumization and higher contribution from value-added products helped partially offset raw milk inflation pressures.
New product launches gaining traction include:
- Livo Yogurts
- Sampurna A2 Curd
- Nourish+ High Protein Paneer
- Alpenvie Ice Cream range
