Mumbai, May 11 Heritage Foods on Monday reported a 36.7 per cent year-on-year decline in consolidated net profit for the fourth quarter (Q4) of FY26, as higher milk procurement costs and supply-side constraints weighed on margins despite steady revenue growth.
The company posted a consolidated net profit of Rs 24.16 crore for the January-March quarter, compared to Rs 38.17 crore in the corresponding period previous financial year (Q4 FY25), according to its stock exchange filing.
Revenue from operations rose 10.4 per cent year-on-year to Rs 1,157.56 crore in Q4 FY26, against Rs 1,048.47 crore in the year-ago quarter.
However, EBITDA declined 34.6 per cent to Rs 52.23 crore from Rs 79.88 crore a year earlier, while EBITDA margin contracted sharply to 4.5 per cent from 7.6 per cent.
The dairy company said the industry continued to face severe milk shortages and elevated procurement inflation during the financial year, which impacted overall profitability.
Heritage Foods said procurement volumes during Q4FY26 stood at 16.38 lakh litres per day, down 7 per cent year-on-year due to industry-wide supply constraints.
Average landed milk cost increased 8 per cent to Rs 46.7 per litre amid tight supply conditions and inflationary pressures, as per its exchange filing.
Despite the challenging environment, the company crossed the Rs 4,526 crore annual revenue milestone during FY26.
Milk sales volumes rose 1 per cent year-on-year to 11.73 lakh litres per day in the March quarter and increased 2 per cent for the full financial year, it said in its regulatory filing.
Average milk selling prices rose 4 per cent year-on-year to Rs 57.80 per litre during the quarter, supported by calibrated pricing actions taken by the company.
Value-added products (VAP) continued to remain a major growth driver for the company. Revenue from the segment increased 18 per cent year-on-year to Rs 396 crore in Q4 FY26 and rose 13 per cent to Rs 1,468 crore for the full year.
The contribution of value-added products improved to 35.5 per cent in the March quarter from 32.5 per cent a year ago, while the full-year contribution rose to 35.3 per cent from 32 per cent.
Among product categories, paneer volumes registered a strong 32 per cent year-on-year growth during the quarter, while curd volumes rose 11 per cent and ice cream sales increased 26 per cent.
The growth was supported by new product launches including Livo Yogurts, Sampurna A2 Curd, Nourish+ High Protein Paneer and the Alpenvie ice cream range.
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