Heritage Foods LimitedQ1 FY27 Results & Financial Update
Heritage Foods Limited: Q1 FY27 consolidated results and company financials – revenue ₹1,338.09 Cr, PAT ₹24.97 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
Quarter at a glanceCurrent reported figures.Change figures appear when a comparable reported period is available.
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Quarterly Results AnalysisExplore Heritage Foods Q1 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
Profit before tax was ₹33.55 Cr for the reported quarter. EPS was ₹2.72 for the reported quarter.
Consolidated revenue increased by 18% year-on-year to INR13,381 million in Q1 FY27, driven by robust performance in value-added products. EBITDA stood at INR619 million with an EBITDA margin of 4.6%, while profit after tax (PAT) was INR150 million, yielding a PAT margin of 1.9%.
Elevated milk procurement costs continued to weigh on margins, with average procurement prices rising 7% year-on-year to INR46.61 per liter due to supply tightness and a subdued mini-flush season.
VAP revenue grew 40% year-on-year to INR5,636 million, raising VAP's contribution to record consolidated revenue share of 44% (or 49% including consumer pack ghee and butter).
Profit after tax was ₹24.97 Cr for the reported quarter. EPS was ₹2.72 for the reported quarter.
01 · Financial snapshot
Current-quarter financial snapshot
| Metric | Q1 FY27 |
|---|---|
| Revenue from operations | ₹1,338.09 Cr |
| Total income | ₹1,344.50 Cr |
| Profit before tax | ₹33.55 Cr |
| Profit after tax | ₹24.97 Cr |
| EPS | ₹2.72 |
02 · Why it moved
Why the quarter looked the way it did
What drove margins
Operating leverage kicked in, with other expenses down to 9.01% of revenue (from 9.64% in Q1 FY26) and employee benefits down to 6.74% (from 7.21%), collectively improving the bottom line by 1.1%.
For Q1 FY27, milk EBITDA margin was 3.03% and VAP EBITDA margin was 8.06%. Ice cream remains the highest margin product within VAP.
To combat sticky raw material inflation, management implemented weighted average price hikes of around 5% in VAP and continues to execute price increases across several markets in July.
03 · Demand, customers & order book
Where demand is coming from
Management noted that 80% of VAP growth stemmed from distribution expansion (adding new points in existing geographies) and 20% from increased consumer traction, resulting in significant market share gains across curd, paneer, and buttermilk within organized channels.
04 · Segments, products & geography
Which parts of the business are doing the work
Geography and market mix
Growth during the quarter was achieved strictly within existing geographies without entering any new geographic markets.
05 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
The newly commissioned ice cream facility ramped up to approximately 40% capacity utilization during the quarter, manufacturing both Alpenvie and Get-A-Way portfolios from a common platform.
06 · Reported developments
What changed operationally
VAP growth was largely volume-driven (about 35% volume growth backed by a 5.12% weighted average price hike), with strong category-wise volume increases: paneer up 33%, curd up 26%, ice cream up 25%, buttermilk up 60%, and lassi up 98%.
Ice cream business revenue crossed INR550 million, growing 65% year-on-year. Alpenvie grew 44% and Get-A-Way grew 196% year-on-year while achieving near breakeven bottom line.
Heritage Novandie Foods became a wholly-owned subsidiary, and the company increased its shareholding in Peanut Butter and Jelly Limited to 71%.
07 · Pressure points & risks
What is not going smoothly
Gross margins declined by about 2.5% compared to last year, pressured by cow milk price increases (up by almost INR1 per liter), higher skimmed milk powder (SMP) consumption at higher prices, and a 30 bps impact from packing material cost inflation.
Buffalo milk volumes experienced over 20% degrowth during the quarter due to acute supply shortages, driving a product mix shift toward cow milk.
08 · Management guidance & targets
What management is targeting from here
The company aims to expand value-added product contribution to around 50% of total revenues by FY30.
Total capital expenditure for FY27 is projected at approximately INR250 crores, covering ongoing construction projects for paneer and ghee plants, raw milk procurement investments, and minor capex.
09 · Management call deep dive
What management said on the conference call
Operating takeaways
10 key pointsHeritage added nearly 5,000 farmers in Q1 FY27 and plans to add another 5,000 in Q2, boosting village-level collection centers and throughput while supporting farmers via subsidized cattle feed and veterinary services.
Operating leverage kicked in, with other expenses down to 9.01% of revenue (from 9.64% in Q1 FY26) and employee benefits down to 6.74% (from 7.21%), collectively improving the bottom line by 1.1%.
Growth during the quarter was achieved strictly within existing geographies without entering any new geographic markets.
Heritage Nutrivet reported revenue of INR728 million (up 37% year-on-year) and PBT of INR20 million despite severe feed ingredient cost inflation.
Management noted that 80% of VAP growth stemmed from distribution expansion (adding new points in existing geographies) and 20% from increased consumer traction, resulting in significant market share gains across curd, paneer, and buttermilk within organized channels.
The newly commissioned ice cream facility ramped up to approximately 40% capacity utilization during the quarter, manufacturing both Alpenvie and Get-A-Way portfolios from a common platform.
For Q1 FY27, milk EBITDA margin was 3.03% and VAP EBITDA margin was 8.06%. Ice cream remains the highest margin product within VAP.
To combat sticky raw material inflation, management implemented weighted average price hikes of around 5% in VAP and continues to execute price increases across several markets in July.
The company aims to expand value-added product contribution to around 50% of total revenues by FY30.
Total capital expenditure for FY27 is projected at approximately INR250 crores, covering ongoing construction projects for paneer and ghee plants, raw milk procurement investments, and minor capex.
Important analyst Q&A
3 key pointsManagement explained that the expected April-May mini-flush failed to materialize due to adverse weather and climatic conditions, keeping procurement prices firm. An October-November flush is anticipated, though weather conditions remain a variable.
Clarified that 80-90% of VAP growth was driven by distribution expansion in existing markets and 20-25% by market share gains and consumer traction, rather than opening new geographies.
Management stated that the company is currently in the trough of raw milk cost cycles; returning to high single-digit EBITDA margins (7% to 7.5%+) will be driven primarily by raw milk prices eventually easing alongside continued VAP scaling.
10 · Key Q&A
The quarter, answered directly
What is the clearest takeaway from Q1 FY27?
Profit before tax was ₹33.55 Cr for the reported quarter. EPS was ₹2.72 for the reported quarter.
What drove revenue or demand?
Management noted that 80% of VAP growth stemmed from distribution expansion (adding new points in existing geographies) and 20% from increased consumer traction, resulting in significant market share gains across curd, paneer, and buttermilk within organized channels.
What mattered most for margins or profitability?
Operating leverage kicked in, with other expenses down to 9.01% of revenue (from 9.64% in Q1 FY26) and employee benefits down to 6.74% (from 7.21%), collectively improving the bottom line by 1.1%.
What changed operationally beyond the headline numbers?
The newly commissioned ice cream facility ramped up to approximately 40% capacity utilization during the quarter, manufacturing both Alpenvie and Get-A-Way portfolios from a common platform.
What is management guiding or targeting from here?
The company aims to expand value-added product contribution to around 50% of total revenues by FY30.
What are the main pressure points disclosed for the quarter?
Gross margins declined by about 2.5% compared to last year, pressured by cow milk price increases (up by almost INR1 per liter), higher skimmed milk powder (SMP) consumption at higher prices, and a 30 bps impact from packing material cost inflation.
11 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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