Heritage Foods Q2FY26 Profit Increases 5% YoY, 26% Sequentially Due to Dairy Strength

Hyderabad, October 15, 2025: Heritage Foods Ltd. (NSE: HERITGFOOD, BSE: 519552) posted a consistent performance for the second quarter of FY26, with its consolidated net profit increasing 5% year-on-year (YoY) to ₹509.95 million and 26% sequentially from the last quarter. The profitability of the company was driven by good performance in its dairy business and a one-time GST refund based on flavoured milk classification.

Established in 1992 and based in Hyderabad, Heritage Foods Limited is India’s top integrated dairy company. It has businesses in the dairy, renewable energy, and cattle feed sectors. The company is involved in the procurement, processing, and distribution of milk, along with a diversified portfolio of value-added dairy products under the “Heritage” brand.

Trading on both BSE and NSE, Heritage Foods is still dedicated to sustainable growth driven by innovation, operational excellence, and consumer-centric product development.

Stock Performance

The stock closed at ₹484.05 on October 15, registering a marginal decline of ₹0.35, or 0.07%, for the day. Despite the slight drop, the stock remained largely stable throughout the trading session, reflecting steady investor sentiment.

Consistent Financial Growth

For the September 30, 2025 quarter, Heritage Foods’ consolidated revenue from operations was ₹11,125.17 million, an increase of 9.1% YoY from ₹10,195.23 million in Q2FY25. The total income increased to ₹11,176.83 million, an increase of 8.8% year-on-year.

Profit before tax (PBT) was at ₹677.60 million, slightly better than ₹674.73 million in the corresponding period last year, while net profit after tax was at ₹509.95 million compared to ₹486.29 million in Q2FY25. On a quarter-on-quarter basis, the firm’s profit increased 25.8% from ₹405.46 million in Q1FY26 on the back of increased operating leverage and cost control.

Earnings per share (EPS) increased to ₹5.50, up 5% YoY and 25.6% quarter-on-quarter. The firm also saw an exceptional income of ₹93.56 million due to the refund of differential GST and the reversal of previous provisions.

Segment-Wise Performance

The Dairy business remained the pillar of Heritage Foods, generating more than 94% of the company’s overall revenue. Segment revenue increased 8.4% YoY to ₹10,911.43 million, led by robust demand, improved realizations, and cost efficiency in procurement and logistics.

The Feed segment reported a strong 34% growth in revenue, which increased to ₹581.12 million from ₹433.45 million in Q2FY25 on the back of capacity expansion and performance of its subsidiary company, Heritage Nutrivet Ltd. The Renewables segment saw 2.3% YoY growth with revenue at ₹32.68 million.

Standalone Results Mirror Margin Expansion

On a standalone scale, Heritage Foods posted revenue of ₹10,904.14 million in Q2FY26, an 8.4% YoY growth. Standalone net profit surged to ₹484.04 million, from ₹182.67 million in Q2FY25. This improvement was mainly due to cost optimization, sales of higher-margin products, and operational efficiency in the dairy segment.

The company also gained from its increasing value-added product offerings, such as curd, paneer, and buttermilk, which continue to contribute a rising proportion of total revenue.

Management Commentary

Commenting on the performance, N. Bhuvaneswari, Vice Chairperson and Managing Director, Heritage Foods, said that the robust financial performance of the quarter reflects the company’s emphasis on pursuing profitability through a widening value-added dairy portfolio and cost reductions.

She further stated that the takeover of Heritage Novandie Foods Ltd, which was completed in June 2025, has been fully integrated, enhancing Heritage’s footprint in premium dairy products. The company remains committed to innovation, cost management, and expanding its retail distribution in southern and western India.

Strong Balance Sheet and Financial Health

As of September 30, 2025, consolidated total assets were at ₹16,625.87 million, as against ₹15,583.40 million as on March 31, 2025. Shareholders’ equity rose to ₹10,435.12 million, indicating a sound capital structure and a conservative leverage profile. The company had sound liquidity, facilitated by effective working capital management and consistent cash flows from operations.

REF: https://nsearchives.nseindia.com/corporate/HERITGFOOD_15102025145956_Q2_BM_Outcome.pdf

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