Heritage Foods Limited (NSE:HERITGFOOD) disclosed the transcript of its Q1 FY27 earnings conference call held on July 17, 2026, through an exchange announcement filed on July 21, 2026. The company reported consolidated revenue of INR 13,381 million, the highest quarterly revenue in its history, with value-added products contributing a record 44% of revenues and growing 40% year-on-year despite elevated milk procurement costs across the dairy industry.
Key Highlights
- Consolidated revenue for Q1 FY27 reached INR 13,381 million, marking the highest quarterly revenue in the company's history, representing 18% year-on-year growth.
- Value-added products revenues grew 40% year-on-year to INR 5,636 million, driven by paneer volumes up 33%, curd up 26%, ice cream up 25%, buttermilk up 60%, and lassi up 98% year-on-year.
- EBITDA stood at INR 619 million with an EBITDA margin of 4.6%, while profit after tax was INR 150 million with a PAT margin of 1.9% for the quarter.
- Milk procurement volumes increased 2% year-on-year to 18.10 lakh liters per day, while average milk sale prices improved 4% year-on-year to INR 58.68 per liter.
- Heritage Nutrivet reported revenue of INR 728 million, growing 37% year-on-year with profit before tax of INR 20 million despite elevated input costs in the animal nutrition sector.
- Heritage Novandie Foods became a wholly owned subsidiary, strengthening presence in the high-protein yogurt category through the Livo brand, while shareholding in Peanut Butter and Jelly Limited was increased to 71%.
- The company received the Investor Relations Excellence Award in the F&B category from the Investor Relations Society, recognizing its governance and transparent communication practices.
About the Company
Heritage Foods Limited (NSE:HERITGFOOD, BSE:519552) is an integrated dairy and nutrition company headquartered in Hyderabad, Telangana. The company operates a farm-to-consumer model encompassing milk procurement from dairy farmers, processing and manufacturing of dairy products, and distribution of branded consumer products. Heritage Foods manufactures and sells fresh milk, paneer, curd, ghee, butter, ice cream, buttermilk, lassi, and nutritional products under brands including Heritage, Alpenvie, Get-A-Way, Nourish+, Livo, and Sampurna. The company also operates Heritage Nutrivet Limited, an animal nutrition subsidiary focused on cattle feed and nutritional supplements. Its manufacturing facilities process milk and produce value-added dairy and nutrition products distributed across retail, organized trade, and direct-to-consumer channels in India.
Announcement in Detail
Heritage Foods filed with the BSE and NSE on July 21, 2026, the complete transcript of its Q1 FY27 earnings conference call held on July 17, 2026. The conference call was attended by executive leadership including Mrs. N Brahmani (Executive Director), Dr. M Sambasiva Rao (Whole Time Director), Mr. Srideep Kesavan (Chief Executive Officer), Mr. A Prabhakara Naidu (Chief Financial Officer), Mr. J Samba Murthy (Chief Operating Officer), and Dr. Brij Mohan (Chief Executive Officer, Heritage Nutrivet Limited). The filing was made in accordance with the company's investor communication policy and made available on the company website at www.heritagefoods.in.
During the call, management highlighted that Q1 FY27 delivered consolidated revenue of INR 13,381 million, an 18% increase year-on-year. This represented the highest quarterly revenue milestone in the company's history. Management attributed this performance to continued strength in value-added products and disciplined execution despite challenging industry conditions marked by elevated milk procurement costs. Milk procurement prices during the quarter increased 7% year-on-year to INR 46.61 per liter, reflecting continued supply tightness across key milk-producing regions. Despite these cost pressures, the company increased milk procurement volumes by 2% year-on-year to 18.10 lakh liters per day through sustained investments in farmer engagement, veterinary services, cattle nutrition programs, and timely payment practices.
Value-added products emerged as the primary growth driver, with combined revenue including ghee and butter reaching INR 6,322 million and contributing a record 49% of consolidated revenues, compared to 41% in the corresponding quarter of the previous year. The ice cream segment crossed INR 550 million in revenue, growing 65% year-on-year, with the Alpenvie brand delivering 44% growth and the Get-A-Way portfolio achieving 196% year-on-year growth with near breakeven operations. Management noted that a newly commissioned ice cream facility had ramped up to approximately 40% capacity utilization during the quarter, manufacturing both Alpenvie and Get-A-Way portfolios from a common platform.
Impact on Investors
Investors will note that the conference call transcript filing provides detailed operational and financial disclosures for Q1 FY27, offering insight into the company's execution against strategic priorities. The reported achievement of the highest quarterly revenue in company history signals that management has sustained growth momentum despite challenging dairy industry conditions characterized by elevated input costs. The disclosed earnings show that profit after tax reached INR 150 million with a PAT margin of 1.9%, reflecting the impact of higher milk procurement costs on profitability despite strong top-line growth. Shareholders should observe that EBITDA margin of 4.6% indicates that operational deleveraging remains a consideration as the company scales value-added products and invests in manufacturing capacity expansion.
The filing indicates strategic capital allocation decisions including the conversion of Heritage Novandie Foods into a wholly owned subsidiary and an increase in shareholding of Peanut Butter and Jelly Limited to 71%, both aimed at expanding presence in premium nutrition categories. Investors will note that milk procurement costs remain a material headwind, with prices having increased sequentially from March through June 2026, and management flagged expectations of a smaller-than-normal monsoon season due to potential El Niño conditions, suggesting continued procurement cost pressure ahead. The disclosed segment performance shows Heritage Nutrivet contributed INR 728 million in revenue with INR 20 million profit before tax, indicating that diversification into animal nutrition offers an additional growth avenue, though this segment faces elevated input costs similar to the broader dairy industry.
Sector / Market Context
The Indian dairy sector has faced significant headwinds during FY27 driven by elevated milk production costs and supply constraints across traditional milk-producing regions. Industry-wide milk procurement price inflation, which Heritage noted at 7% year-on-year, reflects sustained supply tightness. The conference call transcript indicates management's expectation of continued seasonal challenges, with expectations for a mini flush in April-May that did not materialize as expected due to adverse weather conditions, and forecasts of potential monsoon deficiency in the remainder of the fiscal year. Against this backdrop, Heritage's ability to increase milk procurement volumes by 2% year-on-year through investments in farmer engagement and veterinary services demonstrates competitive differentiation.
The broader consumer dairy market in India continues to see premiumization trends, with retailers and manufacturers reporting sustained consumer demand for value-added products including paneer, yogurt, ice cream, and nutrition-focused dairy products. Heritage's disclosure that value-added products contributed a record 49% of consolidated revenues, compared to 41% in the prior year quarter, aligns with sector-wide trends toward branded, packaged, and higher-margin dairy offerings. The company's investments in new manufacturing capacity, brand building in premium segments such as Alpenvie ice cream and Livo yogurt, and strategic acquisitions in the nutrition space reflect capital allocation decisions consistent with broader industry evolution toward premiumization and value-addition across the organized dairy sector.