ICICI Securities has maintained a HOLD rating on Heritage Foods with a revised target price of ₹346 in its research report dated July 19, 2026. According to the brokerage's analysis, the target price has been reduced from the earlier ₹385, reflecting updated valuation metrics for the food processing company.
Heritage Foods delivered its highest-ever quarterly revenue in Q1FY27, driven by broad-based volume growth across its Value Added Products (VAP) segment. As reported by ICICI Securities, the company's VAP contribution to revenue increased from approximately 36% in Q1FY26 to 44% in Q1FY27, indicating successful strategic focus on higher-margin products. The growth was largely volume-led and driven by distribution expansion across key markets.
Despite record revenues, Heritage Foods faced margin pressures due to elevated milk procurement prices, high packaging material costs, and high SMP (Skimmed Milk Powder) prices during the quarter. According to ICICI Securities' analysis, the company continued to prioritise procurement expansion, market share gains and investments in VAP categories despite these cost headwinds affecting profitability.
The company's strategic initiatives showed positive momentum with the new ice cream facility continuing to ramp up well, while premium brands witnessed encouraging traction in the market. As reported by ICICI Securities, Heritage Novandie Foods became a wholly owned subsidiary, and the company's stake in Peanutbutter & Jelly Limited (Getaway brand) was increased to 71%, reinforcing its presence in high-growth categories.
ICICI Securities noted that Heritage Foods' continued focus on premiumisation, distribution expansion and branded portfolio enhancement could support healthy earnings growth in the coming periods. The brokerage's analysis suggests that these strategic initiatives position the company well for sustained growth despite current margin pressures from input cost inflation.
