Heritage Foods Q2 profit drops 39% as milk procurement costs rise

The average landed cost of milk procurement rose 11% year on year to ₹47.73 a litre, driven by sustained demand, limited improvement in arrivals, and higher feed and fodder costs

Milk procurement volumes increased 7% YoY in Q2 FY27 and 4% in H1 FY27 despite monsoon-related supply constraints.

Mumbai: Heritage Foods Limited on Thursday reported a 19 per cent year-on-year (YoY) increase in consolidated revenue to ₹1,319.6 crore for the quarter ended 30 September 2026. The company's EBITDA margin recovered to 5.6 per cent.Financial PerformanceThe company's consolidated profit after tax (PAT) stood at ₹30.9 crore for Q2 FY27, a 39 per cent decline YoY. For the first half of FY27, consolidated revenue grew 18 per cent YoY to ₹2,657.7 crore, with PAT at ₹55.8 crore, a 39 per cent decline YoY.Milk Procurement and SalesMilk procurement volumes rose 7 per cent YoY to 17.28 LLPD in Q2 FY27. Average landed milk procurement prices increased 11 per cent YoY to ₹47.73 per litre, driven by sustained demand and higher feed costs. Milk sales volumes grew 2.5 per cent YoY to 12.35 LLPD in Q2 FY27, and the average selling price improved 6 per cent YoY to ₹60.34 per litre.Heritage Foods Q1 Profit Up 7.5%, Revenue Rises 15.9%; Acquires Full Stake In Heritage Novandie Foods Value-Added Products GrowthRevenue from value-added products (VAP), excluding ghee and butter, increased 32 per cent YoY to ₹451 crore in Q2 FY27. VAP contribution to revenue (excluding ghee and butter) expanded to 35.4 per cent in Q2 FY27, up from 31.3 per cent in Q2 FY26. Categories like Lassi (+91%), Ice Cream (+81%), Buttermilk (+66%), Paneer (+38%) and Curd (+26%) drove this growth.Management CommentaryBrahmani Nara, Executive Director, stated that the company delivered 19 per cent YoY revenue growth and a 98 basis points sequential recovery in EBITDA margin to 5.6 per cent, despite elevated milk procurement costs. Nara added that the company's focus remains on strengthening the procurement ecosystem, expanding VAP capacity and accelerating innovation across premium and nutrition-led categories.Disclaimer: This story is based on company exchange filings and is for informational purposes only. Investors should evaluate risks before making decisions.