Heritage Foods Ltd

Heritage Foods Limited reported strong Q2 and H1 FY27 results, with consolidated revenue growing 19% year-on-year to INR13,196 million in Q2 and 18% for H1, reaching INR26,577 million. Despite elevated milk procurement costs, EBITDA stood at INR740 million with a margin of 5.6%, showing a 98 basis point sequential improvement. Milk procurement volumes increased 7% year-on-year to 17.28 lakh liters per day, while H1 volumes grew 4% to 17,69,000 liters per day. Value-added products (VAP) revenue, excluding ghee and butter, rose 32% year-on-year in Q2 and 36% in H1, contributing 35.4% and 39.6% of total revenue, respectively. Growth was driven by lassi, buttermilk, ice cream, paneer, and curd, with curd sales crossing 500 tonnes daily. The company emphasized its integrated farm-to-consumer model, procurement network expansion, and investments in premium and nutrition-led categories. Heritage Nutrivet, a wholly owned subsidiary, reported revenue growth of 47% in Q2 and 42% in H1. Management highlighted efforts to balance pricing with volume growth, improve operating leverage, and navigate inflationary pressures through disciplined execution and product differentiation. The company also noted its wind farm receiving an award for sustainability and reiterated its long-term focus on building a premium branded dairy business.

The document highlights strong revenue growth, improved EBITDA margins, and positive developments in value-added products and sustainability, indicating a positive tone.