FY26 was toughest environment for dairy industry: Heritage Foods

Brahmani Nara, Executive Director, Heritage Foods Ltd said FY26 witnessed one of the toughest operating environments for the dairy industry in recent years, marked by severe milk shortages, elevated procurement inflation and weak flush season.

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Weak flush season and lower milk availability across key regions drove average landed milk costs to Rs 46.7/litre in Q4FY26, up 8 per cent YoY, one of the sharpest raw milk inflation cycles witnessed by the industry in recent years, the company said.

Despite continued network expansion and deep farmer relationships across core markets, severe supply-side challenges resulted in procurement volumes remaining at 16.38 lakh litres per day (LLPD) in Q4FY26, it added.

Heritage Foods fourth quarter net profit declined 37 per cent to Rs 23.9 crore, while revenue rose 10 per cent to Rs 1,157.6 crore from the comparable period last year.

“Despite these challenges, Heritage Foods delivered resilient revenue growth of 9 per cent YoY to Rs 4,526 crore, with quarterly revenues consistently sustaining above the Rs 1,000 crore mark, reflecting the strength of our consumer patronage and execution capabilities,” Nara said.

“Our consumer business continued to deliver healthy momentum led by strong growth across Value-added Products, premium categories and emerging channels. Categories such as curd, paneer, consumer fats and ice-creams recorded strong traction, while Q-commerce and Fresh Distribution scaled rapidly, strengthening market penetration and consumer engagement across key regions. Calibrated pricing actions and improving product mix also supported realisation growth during the year,” she added.

“We remained focused on strengthening procurement infrastructure, expanding distribution reach and scaling high-growth categories. With continued investments in premiumisation, new capacities and Value-added Products, we remain well positioned to drive sustainable long-term growth as industry conditions gradually normalize,” Nara said.

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