Conference Call with Heritage Foods Management and Analysts on Q1FY26 Performance and Outlook. Listen to the full earnings transcript.
Packaged Foods company Heritage Foods announced Q1FY26 results Q1FY26 Financial Highlights: Revenue Rs 11,368 million, change YoY: 10%. EBITDA Rs 739 million, change YoY: -21%. EBITDA Margin 6.5%, change YoY: 9.1%. PAT Rs 405 million, change YoY: -31%. Business Highlights: Revenue Performance despite headwinds: Heritage Foods delivered a strong 10% YoY revenue growth, surpassing Rs 11,000 million in quarterly revenue for the first time marking its highestever quarterly topline, despite inclement weather. Continued Steady progress in Procurement - growing at 9.9% in volumes to 17.8 Lakhs Liters per day in Q1FY26, with the avg milk procurement prices moving up by 4.7% to Rs 43.3 per Liter. Steady Growth in Milk Sales Volume and Realization: Milk sales rose by 2.8% YoY to 11.6 lakh litres per day (LLPD) in Q1FY26, driven by market expansion and strong brand momentum. The average selling price increased to Rs 56.4/liter from Rs 54.8/liter last year up 2.9%, reflecting stable market positioning and pricing strength. Value-Added Products (VAP) Growth despite headwinds: VAP delivered a 5.5% increase in revenue YoY to Rs 4,034 million. Despite adverse weather, most VAP categories grew on a year-on-year basis. VAP contribution (ex-fats) stood at 36.1% to total revenue. Expanded VAP Performance including Ghee & Butter: When including Ghee and Butter consumer packs, VAP revenue surged to Rs 4,540 million, marking a 7.4% YoY growth. The segment now contributes 40.6% of total revenue. Heritage Nutrivet Limited Delivers Stellar Results: Our wholly owned subsidiary, Heritage Nutrivet Limited, posted a 26% YoY increase in revenue, reaching Rs 533 million. Profit before tax surged by an impressive 130% YoY to Rs 67 million, reflecting operational efficiency and strategic focus. 360° Marketing Campaign Rolled Out, featuring a winning TVC across top regional channels, digital influencers, and creating high-impact on-ground visibility. Launched Heritage Livo ‘Healthy-Living’ with renewed Flavored milk range (fortified with Vitamins A & D) and High-Protein Yogurts range, targeting health-conscious consumers. Heritage Foods Ltd has been recognized as ‘India’s Best Workplaces in FMCG’ by the Great Place to Work Institute. This follows our certification as a Great Place to Work in Nov '24. Brahmani Nara, Executive Director, said: “We are happy to report a 10% growth in Q1FY26, 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.” Result PDF