Heritage Foods Ltd. reported a sharp decline in first-quarter profitability even as revenue hit a record high, with elevated milk procurement costs offsetting strong demand for value-added dairy products. According to latest reports from Business Standard, consolidated net profit fell 38.42% year-on-year to ₹25.2 crore in the quarter ended June 2026, compared with ₹40.6 crore a year earlier. Despite the profit decline, revenue rose 17.71% to ₹1,338.09 crore from ₹1,136.76 crore, marking the company's highest-ever quarterly revenue. The company's operating profit margin (OPM) compressed to 4.6% from 6.38% a year ago, reflecting the impact of rising input costs on profitability.
EBITDA declined 16.3% to ₹61.8 crore, while EBITDA margin narrowed to 4.6% from 6.5% a year ago, as reported by Heritage Foods. The company attributed the pressure on margins to persistently high milk procurement costs, stating it chose to prioritise supply continuity and farmer engagement over short-term profitability amid industry-wide milk inflation. This strategic approach reflects the company's commitment to maintaining relationships with dairy farmers while managing cost pressures. The PBDT (Profit Before Depreciation and Tax) fell 18% to ₹60.04 crore from ₹73.64 crore, while PBT (Profit Before Tax) dropped 39% to ₹33.55 crore from ₹54.95 crore in the previous year.
Heritage Foods shares are trading at ₹333-342 on the NSE with a 52-week range of ₹292.55 to ₹540.00, according to latest market data. The stock has a market capitalization of ₹31.19 billion and maintains a dividend yield of 0.74% with 17 consecutive years of dividend payments. Analysts have set an average price target of ₹421.67, with estimates ranging from ₹385 to ₹460. The stock shows strong technical indicators with a Buy rating from 2 analysts and a 52-week trading range of ₹292.55 to ₹540.00. The company's EPS (TTM) stands at ₹16.18 with earnings scheduled for release on July 16, 2026. The stock is currently trading near the upper end of its 52-week range, reflecting strong investor confidence despite recent quarterly challenges.
