Heritage Foods Limited Q4 FY26 Results

Summary

Heritage Foods Limited announced its Q4 and full-year FY26 results, reporting consolidated revenue of ₹11,576 million for Q4FY26, a 10% year-on-year growth, and ₹45,260 million for FY26, up 9% year-on-year. Despite revenue growth, the company faced significant pressure on profitability, with Q4FY26 EBITDA declining 35% to ₹522 million, leading to an EBITDA margin of 4.5%, and Profit After Tax falling 37% to ₹239 million. These challenges were primarily attributed to severe milk supply-side issues and elevated input costs, reflected in an 8% increase in average landed milk costs. However, the Value-Added Products (VAP) segment showed strong resilience, with revenues growing 18% in Q4FY26 and significantly improving its contribution to overall revenue. The wholly owned subsidiary, Heritage Nutrivet Limited, also delivered a robust performance with a 33% revenue increase and a surge in profit before tax.

Key Highlights

1. 1

   Heritage Foods Limited reported consolidated revenue of ₹11,576 million in Q4FY26, representing a 10% year-on-year increase, with full-year FY26 revenue reaching ₹45,260 million, up 9% year-on-year.

2. 2

   Profit After Tax (PAT) for Q4FY26 stood at ₹239 million, reflecting a significant 37% decline year-on-year.

3. 3

   EBITDA decreased by 35% year-on-year to ₹522 million in Q4FY26, resulting in an EBITDA margin of 4.5%, impacted by elevated input costs.

4. 4

   Revenue from Value-Added Products (VAP) demonstrated strong growth, increasing by 18% year-on-year to ₹3,957 million in Q4FY26 and by 13% year-on-year to ₹14,678 million for the full year.

5. 5

   The contribution of Value-Added Products (VAP) to total revenue improved to 35.5% in Q4FY26 from 32.5% in Q4FY25, and to 35.3% in FY26 compared to 32.0% in FY25, indicating a stronger product mix.

6. 6

   Average landed milk costs rose sharply by 8% year-on-year to ₹46.7/litre in Q4FY26, highlighting significant industry-wide milk inflation and supply tightness, which led to procurement volumes remaining at 16.38 LLPD.

7. 7

   The wholly owned subsidiary, Heritage Nutrivet Limited, delivered strong results with a 33% year-on-year increase in revenue to ₹2,454 million in FY26 and profit before tax surging to ₹206 million.