Heritage Foods Q3 FY26: Growth Amid Milk Supply Crunch
Heritage Foods Limited today announced resilient Q3 FY26 results (ended Dec 31, 2025), crossing ₹11,000 Mn revenue for the third straight quarter amid supply tightness.
Key Highlights:- Revenue: ₹11,192 Mn (+8% YoY); VAP revenue +13.8% to ₹3,271 Mn (38.4% mix), consumer VAP (incl. ghee/butter) +22.6%.
- Milk sales volumes +2.1% YoY to 11.94 LLPD; realizations +4.9% to ₹57.31/L.
- EBITDA ₹629 Mn (5.6% margin); PAT ₹346 Mn.
- Strong categories: Curd +6% vol (first >400 tons/day), paneer +25%, ice cream +18%, lassi +29%.
- Procurement 16.73 LLPD (-9% YoY, costs +9% to ₹45.55/L); Nutrivet revenue +27% to ₹645 Mn.
- Ice cream/flavored milk plants commissioning Q4 FY26.
Heritage Foods Ltd’s stock dipped sharply after the company reported a significant decline in quarterly profits, underscoring supply challenges and cost pressures across India’s dairy sector. The stock slumped nearly 10%, hitting a 10-month low as investors reacted to weaker earnings in Q3 FY26.
For the December quarter, the dairy major’s net profit fell nearly 20% year-on-year to ₹34.6 crore, despite an 8.2% increase in revenue to ₹1,119.2 crore. The contrast between top-line growth and bottom-line contraction highlights intense input cost inflation and milk procurement shortages that have squeezed margins. Consolidated EBITDA also declined around 15%, while elevated procurement costs and a one-time wage provision weighed further on results.
Management attributed the profit slide to a tight industry supply environment driven by raw milk shortages and competitive pricing pressures, even as value-added product segments continued contributing to sales growth. Margins were further impacted by higher procurement and logistic costs, reflecting broader sectoral headwinds.
Analysts note that while Heritage Foods continues to expand its revenue base through diversified dairy offerings, its profitability remains vulnerable to raw material volatility unless supply chain efficiencies and scale advantages improve. Some market participants remain cautiously optimistic about medium-term growth if procurement stabilises and value-added categories gain traction.
Source : Dairynews7x7 Jan 30th 2026 Press release and other sources