Heritage Foods Ltd.Revenue +19%, EBITDA margin 5.6% as milk costs rise

Heritage Foods reported Q2 FY27 consolidated revenue of ₹13,196 million, up 19% year-on-year, with EBITDA of ₹740 million at a 5.6% margin, up 98 basis points from Q1, and profit after tax of ₹309 million.

For the half, revenue was ₹26,577 million, up 18%. Milk procurement volume rose 7% to 17.28 lakh litres a day, but the average landed cost rose 11% to ₹47.73 a litre, which management said still weighs on profitability. The company raised consumer prices by about 8% on a weighted basis in Q2, with September increases much higher and October starting at higher price levels, and expects the benefit in Q3. Value-added products excluding ghee and butter grew 32% to ₹4,510 million and reached 35.4% of revenue.

Heritage Nutrivet revenue rose 47% to ₹853 million. Management said Q3 procurement prices may stay about 11% above last year, hopes for relief after Diwali, and expects operating leverage in Q3 to be better than in Q2. It is deepening existing markets rather than expanding geographically.