Heritage Foods Sees 15% Profit Rise Amid Dairy Demand Surge

By DairyNews7x7•Published on May 17, 2025

Heritage Foods Ltd., a prominent Indian dairy company, reported a 15% year-on-year increase in its fourth-quarter profit, reaching ₹628.8 million (approximately $7.35 million) for the quarter ending March 31, 2025. This growth is attributed to a 10% rise in operational revenue, totaling ₹10.48 billion, driven by robust demand for dairy products such as paneer and curd, especially in rural areas.

The company's value-added product segment, including items like flavored milk and yogurt, contributed 32.5% to the total revenue, up from 30.1% in the previous year. This shift indicates a strategic move towards higher-margin products in response to increasing health consciousness among consumers.

In May, Heritage Foods acquired 7.1 million shares of its joint venture, Heritage Novandie Foods, from its French partner Novandie for ₹85 million. This acquisition led to certain one-time impairment charges but is expected to strengthen the company's position in the value-added dairy segment.

The surge in demand is partly due to state income support schemes and a strong harvest, which have boosted rural purchasing power. Analysts note that the growing awareness of protein deficiency in predominantly vegetarian diets is also contributing to increased consumption of dairy products.

Industry Insight:
Heritage Foods' performance underscores the potential for growth in India's dairy sector, particularly in value-added products. The company's strategic focus on expanding its high-margin product portfolio aligns with evolving consumer preferences, presenting opportunities for investors and stakeholders in the dairy industry.