Heritage Foods Limited Earnings Summary — Q1 FY2027
Heritage Foods Announces Strategic Acquisitions Amidst Mixed Q1 Results with 15% Revenue Growth
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 4 consecutive quarters.
- Revenue of ₹1,338 Cr is 17.7% higher year-on-year.
- Revenue has compounded at 16.4% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹25 Cr is 38.4% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -19.3% annualised across the period.
- Operating margin stands at 4.6% in Q1 FY2027.
- Operating margin compressed by 176 bps year-on-year.
- Over the last two years operating margin has contracted by 431 bps.
- PBT margin is 2.5%.
- Expenses grew 19.9% against revenue growth of 17.7%.
- Operating profit of ₹62 Cr is 14.8% lower year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 55/100 (Healthy) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 1,338 | 1,158 | 1,119 | 1,113 | 1,137 | 1,048 | 1,034 | 1,020 | 1,033 | 951 |
| Expenses | Improving | 1,276 | 1,105 | 1,056 | 1,035 | 1,064 | 970 | 962 | 938 | 940 | 882 |
| Operating Profit | Stable | 62 | 52 | 63 | 77 | 73 | 78 | 72 | 81 | 92 | 69 |
| Operating Margin | Softening | 4.6% | 4.5% | 5.6% | 6.9% | 6.4% | 7.5% | 7.0% | 8.0% | 8.9% | 7.2% |
| Other Income | Volatile | 6 | 7 | 8 | 15 | 5 | -2 | 8 | 7 | 6 | 5 |
| Interest | Strong Uptrend | 8 | 5 | 4 | 4 | 4 | 4 | 4 | 4 | 3 | 3 |
| Depreciation | Improving | 26 | 22 | 20 | 20 | 19 | 18 | 18 | 17 | 17 | 16 |
| Profit Before Tax | Stable | 34 | 32 | 46 | 68 | 55 | 54 | 59 | 67 | 78 | 55 |
| Tax | Softening | 9 | 8 | 12 | 17 | 14 | 16 | 16 | 19 | 19 | 14 |
| Net Profit | Stable | 25 | 24 | 35 | 51 | 41 | 38 | 43 | 49 | 58 | 41 |
| Net Margin | Softening | 1.9% | 2.1% | 3.1% | 4.6% | 3.6% | 3.6% | 4.2% | 4.8% | 5.7% | 4.3% |
Key Takeaways
- Standalone revenue from operations increased by 15.44% year-on-year to ₹12.92 billion.
- The board approved the acquisition of an additional 20% stake in Peanutbutter and Jelly Limited (PBJL), raising the company's total shareholding to 71%.
- Heritage Foods is set to acquire the remaining 5.60% stake in Heritage Novandie Foods Limited (HNFL), making it a wholly owned subsidiary.
- Despite revenue growth, Net Profit fell 34.4% compared to the same quarter last year, primarily due to higher raw material costs and interest expenses.
- The Dairy segment remains the primary driver of income, contributing ₹12.91 billion to the total revenue for the quarter.
- Segment assets for the Dairy division grew significantly to ₹15.99 billion from ₹11.16 billion a year ago.
Management Guidance
Management focused on consolidation of subsidiaries through increased equity stakes in PBJL and HNFL to streamline operations and value-added product categories.
Sentiment Shift
Stable
While top-line growth is robust and strategic acquisitions are unfolding, the sharp year-on-year drop in net profit and margins suggests continued cost pressures in the dairy sector.
Outlook
The company is transitioning its joint ventures into subsidiaries or wholly owned entities, indicating a focus on tighter operational control and long-term brand building in the premium food segments like yogurt and spreads.
From the Annual Report (Key Quotes)
“Upon completion of the proposed acquisition, the Company's shareholding in PBJL will increase from 51% to 71%.”
“Heritage Novandie Foods Limited will become a Wholly Owned Subsidiary of the Company.”
“The figures for the quarter ended 31 March 2026 are the balancing figures between the audited figures in respect of the full financial year and unaudited year to date figures.”
Official Quarterly Documents
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This summary is AI-generated from Heritage Foods Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.