Heritage Foods reported a 19.63% decline in consolidated net profit to ₹34.60 crore for the quarter ended December 2025, compared to ₹43.05 crore in the corresponding quarter of the previous year. According to reports from Business Standard, this represents a significant drop in profitability despite the company's revenue growth during the quarter. The company faced significant operational challenges in Q3 FY26, primarily due to milk shortages and rising procurement costs, which compressed margins despite steady consumer demand.
The company demonstrated strong revenue momentum with sales rising 8.24% to ₹1,119.16 crore in Q3 FY2026, up from ₹1,033.94 crore in the same quarter of the previous financial year. As reported by Business Standard, this revenue growth indicates the company's ability to expand its business operations despite the profit decline. The company reported an 8% year-on-year revenue growth, driven by a 2.1% increase in milk sales volume and strong performance in value-added products, reaching 11.94 lakh in milk sales volume.
The company's operating profit margin (OPM) stood at 5.62% in the December 2025 quarter, compared to 6.98% in the corresponding quarter of the previous year. According to the financial data reported by Business Standard, this margin compression contributed to the overall decline in profitability despite the revenue growth. EBITDA declined by 15% to ₹629 crore in Q3 FY26 from ₹741 crore in Q3 FY25, with EBITDA margin for Q3 FY26 at 5.6% as against 7.2% in Q3 FY25. Rising logistics and marketing expenses have strained profitability amid the challenging industry environment.
PBDT (Profit Before Depreciation and Tax) decreased by 13% to ₹66.80 crore in Q3 FY2026 from ₹76.58 crore in the previous year quarter. PBT (Profit Before Tax) also declined by 21% to ₹46.39 crore compared to ₹58.81 crore in the corresponding quarter of the previous financial year. These figures, as reported by Business Standard, reflect the company's overall financial performance during the quarter. The company's profit before tax stood at ₹464 crore in Q3 FY26, down by 21% from ₹588 crore recorded in Q3 FY25.
Executive Director Nara Brahmani highlighted that Q3 FY26 was characterized by an exceptionally tight industry supply environment, marked by milk shortages, elevated procurement costs, and heightened competitive intensity. Despite these challenges, Heritage Foods delivered 8% topline growth, supported by strong execution, disciplined cost management, and sustained momentum in value-added portfolio. The company remains focused on strengthening core markets through sharper route-to-market execution, targeted brand investments, and new product interventions. Looking ahead, the commissioning of ice cream and flavoured milk capacities in Q4 FY26 positions the company well to capture incremental demand and support value-added product growth.
