Stories
Heritage Foods Q2 Profit Drops 39% As Rising Costs Hit Margins
- •Heritage Foods reported a 38.6% year-on-year decline in consolidated net profit to ₹31.3 crore for the second quarter of FY27 due to rising milk procurement costs.
- •Revenue from operations increased by 18.6% year-on-year to ₹1,320 crore, driven by strong performance in value-added products and core milk sales.
- •Average milk procurement costs rose 11% to ₹47.73 per litre, driven by strong demand, limited supply improvements, and higher feed and fodder expenses.
- •Value-added products saw exceptional growth, with lassi revenue surging 91%, ice cream up 81%, buttermilk up 66%, and paneer rising 38%.
- •Executive Director Brahmani Nara stated that the company remains focused on strengthening procurement networks, expanding capacity, and improving margins through premiumisation.
Key Questions Answered
Heritage Foods reported a 38.6% year-on-year drop in consolidated net profit to ₹31.3 crore for the second quarter of FY27. This decline was primarily driven by higher milk procurement costs that squeezed operating margins.
Revenue from operations rose by 18.6% to reach ₹1,320 crore during Q2 FY27, up from ₹1,113 crore in the corresponding period of the previous year. Growth was largely supported by an 8.5% increase in the milk business revenue and strong performance across value-added products like lassi, ice cream, and buttermilk.
The company's average milk procurement cost rose by 11% year-on-year to ₹47.73 per litre, marking an increase of ₹4.74 per litre compared to the year-ago period. This rise was attributed to strong demand, limited improvement in milk supplies, and higher feed and fodder costs.
