Heritage Foods Rallies Over 6% as Q1FY26 Net Profit Rises to ₹378 Million
By Shishta Dutta | Published at: Jul 18, 2025 01:48 PM IST
Hyderabad, July 18: Heritage Foods Limited (NSE: HERITGFOOD) surged 6.29% to ₹487.85 in Friday’s trade as of 1:20 IST, following the announcement of its Q1 FY26 financial results. The stock opened at ₹461.00 and touched a high of ₹493.00 during intraday trading, with volume crossing 27.7 lakh shares and value traded at ₹133.69 crore.
Q1FY26 Financial Highlights (Standalone)
Heritage Foods reported a 3.7% year-on-year rise in net profit, driven by steady operational revenue and controlled cost structures.
| Particulars | Q1FY26 (₹ Mn) | Q4FY25 (₹ Mn) | Q1FY25 (₹ Mn) |
|---|---|---|---|
| Revenue from Operations | 11,189.40 | 11,347.62 | 10,195.88 |
| Total Income | 11,241.79 | 11,406.47 | 10,252.21 |
| EBITDA (Estimate) | ~727.46 | ~758.75 | ~766.39 |
| Profit Before Tax | 506.20 | 351.87 | 765.78 |
| Net Profit | 377.58 | 205.10 | 580.12 |
| EPS (₹) | 4.07 | 2.21 | 6.25 |
The Board meeting to approve these results was held on July 17, 2025, from 11:45 a.m. to 2:30 p.m. IST.
Segment Performance (Standalone)
| Segment | Revenue (₹ Mn) | PBT Before Allocations (₹ Mn) |
|---|---|---|
| Dairy | 11,187.43 | 510.18 |
| Renewable Energy | 28.81 | 10.21 |
Dairy continues to dominate the revenue mix, contributing over 99% of the top line, underscoring its core business strength. The renewable energy segment, while marginal in contribution, remains profitable.
Consolidated Financials (Q1FY26)
On a consolidated basis, Heritage Foods reported ₹11,367.55 million in revenue from operations and ₹405.46 million in net profit attributable to owners.
| Particulars | Q1FY26 (₹ Mn) | Q4FY25 (₹ Mn) |
|---|---|---|
| Revenue from Operations | 11,367.55 | 11,484.66 |
| Total Income | 11,420.27 | 11,549.95 |
| Net Profit | 405.46 | 381.66 |
| EPS (₹) | 4.37 | 4.11 |
The Q1 consolidated figures also reflect full control over Heritage Novandie Foods Private Limited after acquiring the JV partner’s 71 lakh shares on June 16, 2025, for ₹8.5 crore.
Stock Market Snapshot (as of 1:20 IST, July 18, 2025)
| Metric | Value |
|---|---|
| Last Traded Price (₹) | 487.85 |
| Previous Close (₹) | 459.00 |
| Day’s High / Low (₹) | 493.00 / 461.00 |
| VWAP (₹) | 482.51 |
| 52-Week Range (₹) | 352.10 – 659.00 |
| Market Cap (₹ Cr.) | 4,527.05 |
| Free Float Market Cap (₹ Cr.) | 2,078.68 |
| P/E Ratio (Adjusted / Symbol) | 23.57 / 24.81 |
| % Deliverable Volume | 43.00% |
Management Commentary
N. Bhuvaneswari, Vice Chairperson and MD, stated, “Our Q1 performance demonstrates resilience in core operations despite seasonal pressures. The full acquisition of our JV enables strategic realignment and long-term margin expansion.”
Future Outlook
Heritage Foods is expected to benefit from the full integration of its former joint venture, enhanced cost control measures, and increasing scale in its dominant dairy operations. The company’s focus on expanding its geographical presence and strengthening its supply chain networks, along with a strong emphasis on value-added products (VAP), which contribute significantly to overall sales and margins, are key growth drivers.
While unseasonal rains in April-May temporarily impacted demand for value-added products and weighed on profitability, a healthy recovery was observed in June. However, margins may face near-term pressure from raw material inflation, which is a common challenge in the dairy sector. The company’s greenfield ice cream project is also progressing on track, indicating further expansion plans.
About Heritage Foods
Listed since 1996, Heritage Foods Limited is engaged in dairy processing and renewable energy generation. It is part of the NIFTY Total Market index and is based in Hyderabad, India. The company holds ISO 22000 certification, demonstrating its commitment to food safety management, and serves both retail and institutional markets across several Indian states, including Andhra Pradesh, Telangana, Karnataka, Kerala, Tamil Nadu, Maharashtra, Odisha, NCR Delhi, Haryana, Rajasthan, Uttarakhand, and Uttar Pradesh. Its extensive network and brand loyalty, particularly in core markets, position it for continued growth.
REF: https://nsearchives.nseindia.com/corporate/HERITGFOOD_17072025144234_Q1_BM_Outcome.pdf
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