The company reports a 10 per cent year-on-year revenue growth, surpassing Rs 1,100 crore in quarterly revenue for the first time
Heritage Foods, a dairy company offering milk and value-added dairy products, has witnessed a 31 per cent year-on-year decline in its net profit in the first quarter of the current financial year (Q1FY26). The net profit dipped to Rs 40.5 crore.
The company delivered a 10 per cent YoY revenue growth, surpassing Rs 1,100 crore in quarterly revenue for the first time as the revenue stood at Rs 1,136.8 crore in Q1FY26. The earnings before interest, tax, depreciation and amortisation (EBITDA) marked a dip of 21 per cent YoY to Rs 73.9 crore in Q1FY26.
The company said that unprecedented, unseasonal rains from April through May, across all core markets, led to muted demand for value-added products (VAP) such as curd, buttermilk, flavoured milk, and ice-creams, resulting in VAP contribution to overall revenues (ex-fats) declining marginally to 36.1 per cent from 37.5 per cent in Q1 on a YoY basis.
“While unseasonal rains in April and May temporarily impacted demand for value-added products and weighed on profitability, June marked a healthy recovery. Importantly, the fundamentals of our business and the long-term growth drivers remain robust,” highlighted Brahmani Nara, Executive Director.
Nara added that the upcoming greenfield ice cream project is progressing on track, and they continue to build momentum across the company’s brands and deepen their partnership with its customers.
The company’s wholly owned subsidiary, Heritage Nutrivet, posted a 26 per cent YoY increase in revenue, reaching Rs 53.3 crore. Profit before tax surged by 130 per cent YoY to Rs 6.7 crore. In a regulatory filing, the company informed that the board has approved the acquisition of an additional 44.4 per cent stake in HNFPL, increasing the company’s total holding to 94.4 per cent, offering strategic control of yogurt supply chain.
In a matter pertaining to the flavoured milk HSN classification and the applicable rate of goods and services tax (GST), the Supreme Court of India has dismissed the Special Leave Petition (SLP) filed by the GST Department of Andhra Pradesh against the final judgement passed by Andhra Pradesh High Court.
Pursuant to the dismissal of the SLP, flavoured milk is now conclusively classifiable under tariff heading 04029990, attracting 5 per cent GST, as opposed to heading 22029990, which attracts 12 per cent GST. Heritage Foods said in an exchange filing that it is now entitled to claim a refund of GST paid under protest, amounting to a total of Rs 4.53 crore.
