Key Financial Performance
Q2 FY27 Consolidated Performance:
- Revenue: ₹13,196 million, up 19% YoY
- EBITDA: ₹740 million
- EBITDA Margin: 5.6% (improved 98 bps sequentially from Q1 FY27)
- Profit After Tax: ₹309 million
H1 FY27 Consolidated Performance:
- Revenue: ₹26,577 million, up 18% YoY
Milk Procurement Metrics (Q2 FY27):
- Volume: 17.28 lakh liters per day, up 7% YoY
- Average Landed Procurement Cost: ₹47.73 per liter, up 11% YoY
- Cow milk accounts for 80% of procurement by volume
Milk Sales Metrics (Q2 FY27):
- Volume: 12.35 lakh liters per day, up 2% YoY
- Average Selling Price: ₹60.34 per liter, up 6% YoY
H1 FY27 Milk Metrics:
- Procurement Volume: 17.69 lakh liters per day, up 4% YoY
- Sales Volume: 11.99 lakh liters per day, up 1% YoY
- Average Selling Price: ₹59.54 per liter, up 5% YoY
Value-Added Products Performance
Q2 FY27 Value-Added Products (excluding ghee/butter):
- Revenue: ₹4,510 million, up 32% YoY
- Contribution to Revenue: 35.4% (vs 31.3% in Q2 FY26)
Q2 FY27 Broad Value-Added Portfolio (including ghee/butter):
- Revenue: ₹5,408 million, up 31% YoY
- Contribution to Revenue: 42.5% (vs 37.9% in Q2 FY26)
H1 FY27 Value-Added Products Performance:
- Revenue (ex-ghee/butter): ₹10,146 million, up 36% YoY
- Contribution: 39.6% (vs 33.7% in H1 FY26)
- Broad Portfolio Revenue: ₹11,730 million, up 35% YoY
- Contribution: 45.7% (vs 39.3% in H1 FY26)
Product-wise Volume Growth (Q2 YoY)
- Lassi: 89%
- Buttermilk: 56%
- Ice cream: 44%
- Paneer: 21%
- Curd: 15%
Operational Milestones
- Daily curd sales crossed 500 tonnes
- Quarterly yogurt volumes exceeded 100 tonnes
- Nourish+ high-protein paneer accounting for more than 15% of paneer portfolio
- New product launches: Nourish+ High Protein Curd (25g protein), Greek Yogurt (8g protein single-serve, 40g protein mid-sized packs), organic curd, expanded Alpenvie ice cream range
Subsidiary Performance
Heritage Nutrivet Limited (wholly owned subsidiary):
- Q2 FY27 Revenue: ₹853 million, up 47% YoY
- Q2 FY27 Profit Before Tax: ₹37 million
- H1 FY27 Revenue: ₹1,581 million, up 42% YoY
- H1 FY27 Profit Before Tax: ₹56 million
Get-A-Way (71% stake):
- Heritage manufactured and supplied 3,272 liters of ice cream per day to support growth
Heritage Novandie Foods (wholly owned subsidiary):
- LIVO brand established among top 5 yogurt brands in India
Sustainability Achievement
- Heritage Foods wind farm (6.3 MW capacity) received Indian Wind Power Association's Best Performing Wind Farm Award for 2025-26
Management Commentary on Market Conditions
- Elevated procurement costs due to sustained demand, limited improvement in milk arrivals, and higher feed/fodder costs
- El Niño conditions affecting monsoon patterns, with drought in southern states and floods in northern states
- Company implementing farmer support programs including veterinary care, nutrition support, and working capital assistance
- Net revenue increase of 8% YoY overall (milk: 6%, value-added products: 9-10%)
- Price hikes implemented in July, August, and September 2026
- Current October prices higher than Q2 levels
Competitive Landscape Discussion
- Total Indian dairy industry estimated at ₹13-14 lakh crores, with organized sector at ₹4.5-5.5 lakh crores
- Focus on converting unorganized trade to organized sector
- Strategy focused on deepening existing markets rather than geographic expansion
- International presence in 12 countries (Middle East, West Asia, Southeast Asia, Far East Asia)
Capital Structure Impact
- Newly commissioned ice cream facility providing additional manufacturing capacity
- Higher depreciation from recently capitalized projects affecting PBT/PAT despite EBITDA improvement
- Operating leverage improving with higher volumes
Forward-looking Statements
- Focus on calibrated pricing, tight cost control, premiumization, and operating leverage
- Expectation of continued value-added products growth in Q3
- Hoping for buffalo flush season improvement post-Diwali
- Targeting margin improvement through product mix shift and operating efficiency