Heritage Foods Q2 revenue rises 19 pc to Rs 1,319.6-cr; net profit down 39 pc

Hyderabad, Oct. 15 (TNT) : Heritage Foods Limited on Thursday reported a 19 per cent year-on-year increase in consolidated revenue to Rs 1,319.6 crore for the second quarter of FY27, while EBITDA margin improved 98 basis points sequentially to 5.6 per cent despite elevated milk procurement costs.

The dairy company’s net profit declined 39 per cent year-on-year to Rs 30.9 crore during the quarter ended September 30, 2026.

EBITDA stood at Rs 74 crore, down four per cent from the corresponding quarter last year, the company said in a release.

Revenue for the first half of FY27 rose 18 per cent year-on-year to Rs 2,657.7 crore, while net profit fell 39 per cent to Rs 55.8 crore.

EBITDA for the half-year declined 10 per cent to Rs 135.8 crore, with the margin at 5.1 per cent.

Heritage Foods said its performance was supported by growth in value-added dairy products, higher product realisations and continued demand across its consumer portfolio.

Revenue from value-added products, excluding ghee and butter, grew 32 per cent year-on-year to Rs 451 crore in Q2 FY27. Their contribution to revenue increased to 35.4 per cent from 31.3 per cent a year earlier.

Including ghee and butter, value-added product revenue rose 31 per cent to Rs 540.8 crore during the quarter, accounting for 42.5 per cent of revenue, compared with 37.9 per cent in Q2 FY26.

Among individual categories, revenue from lassi increased 91 per cent, ice cream 81 per cent, buttermilk 66 per cent, paneer 38 per cent and curd 26 per cent year-on-year.

Volume growth was also recorded across these categories.

Milk revenue grew 8.5 per cent year-on-year, supported by 2.5 per cent growth in sales volume and calibrated price increases.

Average milk realisation rose six per cent to Rs 60.34 per litre.

Milk procurement volumes increased seven per cent year-on-year to 17.28 lakh litres per day in the quarter.

However, the average landed procurement cost rose 11 per cent to Rs 47.73 per litre, reflecting sustained demand, limited improvement in milk arrivals and higher feed and fodder costs.

The company said daily curd sales crossed 500 tonnes during the quarter, while Nourish+ High Protein Paneer accounted for more than 15 per cent of its paneer portfolio.

It also expanded its high-protein range with the launch of Nourish+ High Protein Curd and Greek Yogurt.

Heritage Nutrivet Limited, a wholly owned subsidiary, reported revenue of Rs 85.3 crore in Q2 FY27, up 47 per cent year-on-year, with profit before tax of Rs 3.7 crore.

Executive Director Brahmani Nara said the company remained focused on strengthening its milk procurement network, expanding value-added product capacity and introducing products in premium and nutrition-focused categories.

The company would continue to focus on cost control, operating efficiency and premiumisation to improve margins amid near-term cost pressures, she added.

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