Heritage Foods' net profit drops 37% on higher milk costs, declares ₹2.50 final dividend

Dairy company Heritage Foods Ltd on Monday (May 11) reported a 36.7% decline in consolidated net profit to ₹24.16 crore for the fourth quarter compared with ₹38.17 crore in the same period last year.

Revenue rose 10.4% year-on-year to ₹1,157.56 crore versus ₹1,048.47 crore. EBITDA fell 34.6% to ₹52.23 crore from ₹79.88 crore in the year-ago period, impacted by higher milk inflation and input costs. EBITDA margin contracted to 4.5% from 7.6% a year earlier.

The company reported that it crossed the ₹4,526 crore annual revenue milestone in FY26, despite severe milk supply-side constraints and elevated input costs.

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It said procurement volumes were impacted by industry-wide milk shortages, with Q4FY26 procurement at 16.38 LLPD, down 7% year-on-year. Average landed milk cost rose 8% to ₹46.7 per litre in Q4FY26 amid tight supply conditions and inflationary pressures.

Milk sales volumes increased 1% year-on-year to 11.73 LLPD in Q4FY26 and 2% in FY26, while average selling prices rose 4% to ₹57.80 per litre in Q4FY26 and ₹57.13 per litre in FY26, supported by calibrated pricing actions.

Value-added products remained a key driver, with VAP revenue rising 18% year-on-year to ₹396 crore in Q4FY26 and 13% to ₹1,468 crore in FY26. VAP contribution improved to 35.5% in Q4FY26 from 32.5% a year earlier, and to 35.3% in FY26 from 32.0%.

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Category-wise, paneer volumes grew 32% year-on-year in Q4FY26, curd rose 11%, and ice cream increased 26%, reflecting strong demand and product mix improvement. Growth was supported by new product launches, including Livo Yogurts, Sampurna A2 Curd, Nourish+ High Protein Paneer, and Alpenvie Ice Cream range.

Heritage Nutrivet Ltd posted a 33% year-on-year rise in revenue to ₹246 crore in FY26, while profit before tax stood at ₹20.6 crore. E-commerce and quick commerce revenue grew 56% year-on-year, while fresh distribution and emerging channels increased 49%, supporting broader channel expansion.

The board has recommended a final dividend of ₹2.50 per equity share (50%) of face value ₹5 for FY26, subject to shareholder approval at the 34th Annual General Meeting. If approved, the dividend will be paid on July 30, 2026.

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Shares of Heritage Foods Ltd ended at ₹379.70, up by ₹17.20, or 4.74%, on the BSE.