Q2 FY27 Financial Performance

Revenue from Operations reached ₹13,196 million, representing 19% year-over-year (YoY) growth compared to Q2 FY26 (₹11,125 million).

EBITDA was ₹740 million, declining 4% YoY from ₹772 million in Q2 FY26. EBITDA Margin contracted to 5.6% from 6.9% in Q2 FY26.

Profit After Tax (PAT) was ₹309 million, down 39% YoY from ₹510 million in Q2 FY26. PAT Margin was 2.3% compared to 4.6% in Q2 FY26.

EPS Diluted stood at ₹3.4, down 39% YoY from ₹5.5 in Q2 FY26.

Depreciation increased 37% YoY to ₹275 million. Finance Cost increased 89% YoY to ₹73 million. Other Income decreased 35% YoY to ₹34 million.

H1 FY27 Financial Performance

Revenue from Operations reached ₹26,577 million, representing 18% YoY growth compared to H1 FY26 (₹22,493 million).

EBITDA was ₹1,358 million, declining 10% YoY from ₹1,511 million in H1 FY26. EBITDA Margin was 5.1% compared to 6.7% in H1 FY26.

Profit After Tax (PAT) was ₹558 million, down 39% YoY from ₹915 million in H1 FY26. PAT Margin was 2.1% compared to 4.1% in H1 FY26.

EPS Diluted stood at ₹6.1, down 38% YoY from ₹9.9 in H1 FY26.

Segment-wise Performance (Q2 FY27)

Milk Revenue: ₹6,857 million (compared to ₹6,321 million in Q2 FY26)

Value-Added Products (VAP) Revenue: ₹4,510 million, up 32% YoY from ₹3,418 million in Q2 FY26. VAP contribution to total revenue improved to 35.4% from 31.3% in Q2 FY26.

Other Revenue: ₹912 million (compared to ₹636 million in Q2 FY26)

Fat Products Revenue: ₹918 million (compared to ₹751 million in Q2 FY26)

When including consumer packs of Ghee and Butter, total VAP revenue reached ₹5,408 million in Q2 FY27, up 31% YoY, contributing 42.5% to total revenue compared to 37.9% in Q2 FY26.

Operational Metrics

Milk Procurement: 1.73 million liters per day (MLPD), up 7% YoY

Milk Procurement Price: ₹47.73 per liter, up 11% YoY

Milk Sales Volume: 1.24 MLPD, up 2.5% YoY

Average Selling Price: ₹60.34 per liter, up 6% YoY

Subsidiary Performance

Heritage Nutrivet Limited (wholly owned subsidiary) reported Q2 FY27 revenues up 47% YoY. The company is a leading livestock feed producer and distributor in 9 states across India.

Business Overview

Procurement Network: 300,000+ farmers across 9 states, 1.77 million liters procurement per day

Infrastructure: 188 chilling centers with 2.69 MLPD capacity, 19 processing plants with 2.95 MLPD capacity

Distribution: 2,250+ vehicles, 7,500+ distributors, 205,000 retail outlets

Market Reach: Services 10 million consumers daily across 13 states

Historical Financial Performance

FY26: Revenue ₹45,260 million, EBITDA ₹2,663 million (5.9% margin), PAT ₹1,501 million (3.3% margin), EPS ₹16.22

FY25: Revenue ₹41,346 million, EBITDA ₹3,310 million (8.0% margin), PAT ₹1,883 million (4.6% margin), EPS ₹20.29

FY24: Revenue ₹37,939 million, EBITDA ₹2,095 million (5.5% margin), PAT ₹1,065 million (2.8% margin), EPS ₹11.48

Balance Sheet Highlights (FY26)

Total Assets: ₹19,498 million

Shareholders' Funds: ₹11,033 million

Long-term Borrowings: ₹2,543 million

Short-term Borrowings: ₹1,072 million

Net Debt/Equity: 0.33

ROCE: 13.95%

Key Business Initiatives

  • Launch of Nourish+ high protein platform
  • Heritage Purity Promise milk testing initiative
  • Digital transformation including Customer Live Application, DMS, and Heritage VET+ app
  • 14.92 MW renewable capacity (8.62 MW solar, 6.30 MW wind) fulfilling 39% of total power needs

Awards and Recognition

  • Best Performing Wind Farm Award for FY2025-26 from Indian Wind Power Association
  • Fortune India's Most Powerful Women 2026 recognition for Mrs. N Brahmani
  • Best Environmental Award for Narketpally Plant from Telangana Pollution Control Board
  • IR Excellence Award in Food & Beverage category
  • Golden Peacock Award for Excellence in Corporate Governance 2025

Leadership

Board of Directors: Mr. A V Girija Kumar (Chairperson), Mrs. Nara Bhuvaneswari (Vice Chairperson & Managing Director), Mrs. Nara Brahmani (Executive Director), Dr. M Sambasiva Rao (Whole Time Director), Mrs. Aparna Surabhi (Independent Director), Mr. M P Vijay Kumar (Independent Director)

Management Team: Mr. Srideep Kesavan (CEO), CA A. Prabhakara Naidu (CFO), Mr. J Samba Murty (COO), Mr. Umakanta Barik (Company Secretary & Compliance Officer)

Industry Context

India contributes 24% of global milk production. Approximately 40% of milk sales are handled by the organized sector, with 60% managed by the unorganized sector. Developed nations process around 90% of surplus milk through the organized sector.

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