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Earnings Call

Heritage Foods Earnings Call: Key Takeaways

Heritage Foods reported Q1 FY27 revenue of ₹13,381 million, up 18% YoY, driven by a record 44% contribution from Value-Added Products (VAP) despite elevated milk procurement costs impacting margins.

Guidance and delivery
Management target Revenue 371.7% FY30
Highlights
Revenue growth18% YoY consolidated revenue growth in Q1 FY27.
MarginsEBITDA margin contracted to 4.6% from 6.5% YoY due to procurement inflation.
Demand visibilityStrong; record VAP contribution and stable milk sales volumes.
Management confidenceHigh; confident in sustainable long-term growth as industry conditions normalize.

Growth

Revenue grew 18% YoY to ₹13,381 Mn; VAP revenue increased 40% YoY; PAT declined 38% YoY to ₹250 Mn.

Outlook

Targeting ₹500+ Cr Ice Cream revenue by FY30; acquired remaining 5.6% stake in Heritage Novandie Foods for 100% ownership.

Risks

High milk procurement prices (up 7% YoY) and industry-wide supply constraints temporarily weighed on profitability and EBITDA margins.

Last quarter's promises, checked

Delivered

  • Guided VAP contribution expansion 2-2.5% → delivered 8.5% increase (44% vs 35.5% = BEAT)
  • Guided ~INR 200 Cr annual CAPEX → delivered INR 380 Cr (BEAT)
  • Guided 35-40% ice cream utilization → delivered record VAP growth (BEAT)

Partly delivered

  • Guided 71% stake in PBJL → delivered 71% but PAT declined 38% (PARTIAL)

Missed

  • Guided 4% milk volume growth → delivered 0.3% (MISS)
  • Guided median 7% EBITDA margin → delivered 4.6% (MISS)
Source

Earnings Call filed with BSE, NSE: HERITGFOOD. Summary written with AI assistance from the document.

Read the document ↗

Heritage Foods Ltd: key numbers

Share price
₹407.40
Market cap
₹3,781 Cr
Revenue (annual)
₹4,526 Cr
Net profit (annual)
₹150.1 Cr
P/E (TTM)
28.1×Sector 43.4×
Promoter holding
41.30%+0.00% QoQ
FII holding
1.98%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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