1. Opening Hook
The monsoon didn’t just pour — it drowned Q2 margins across the dairy sector. Butter prices acted like blue-chip stocks, milk procurement was chaos, and curd sales cooled faster than ice cream freezers. Yet, Heritage Foods showed up with a calm face and a 9% revenue rise. 🎯
Executive DirectorNara Brahmaniand team didn’t just talk milk — they sold “Pure Doodh ki Shakti” like it’s the next IPL franchise. The GST cut added froth, weather took it away, and somewhere in between, EBITDA managed to stay standing.Stick around — things get creamy when we talk about ice-cream plants, robot-assisted dairies, and a management that swears by “operating leverage.” 🍦
2. At a Glance
- Revenue:₹1,112 crore – Up 9% YoY; apparently, milk demand doesn’t melt, it just curdles differently.
- EBITDA:₹77.2 crore – Margins softened to 6.9%; the milk was lean, but not the ambition.
- PAT:₹51 crore – Up 5%; profits rose slower than curd sets in monsoon humidity.
- Value-Added Products (VAP):₹413 crore – Up 18% YoY; curd, paneer, ice cream leading the cool club.
- VAP Mix:38% of revenue – Now we’re talking FMCG, not just milk cans.
- Milk Procurement:16.1 lakh L/day – Down 2%; monsoon cows went on strike.
- Debt/Leverage:Stable; liquidity tighter than a milk pouch seal.
- Stock Reaction:Traders quietly wished they’d switched to lactose-free optimism.
3. Management’s Key Commentary
“Quarter 2 was among the toughest in recent times.”(Translation:The sky literally fell, and so did butter stocks. 🌧️*)
“Our value-added portfolio grew 18% year-on-year.”(Translation:Curd saved the day again — India’s real FMCG hero.*)
“EBITDA margins dropped 122 bps due to milk cost inflation.”(Translation:Cows got expensive; profits went on a diet.*)
“Ice cream plant commissioning by year-end.”(Translation:Just in time to melt profits next summer — but in a good way.*)
“Marketing spends are up 60% YoY.”(Translation:You saw our milk ad. Youdefinitelysaw our milk ad.*)
“Heritage Nutrivet revenue up 34% YoY.”(Translation:Even our cows’ nutrition division is outperforming IT stocks.*)
“We’re using AI, SAP, RPA, copilots for operations.”(Translation:Even the robots are lactose-tolerant here. 🤖*)
4. Numbers Decoded
| Metric | Q2FY26 | YoY Change | One-Line Analysis |
|---|---|---|---|
| Revenue | ₹1,112 Cr | +9% | Dairy’s not dead yet — it just got wetter. |
| EBITDA | ₹77.2 Cr | +5% | Margin got drenched, but still alive. |
| EBITDA Margin | 6.9% | -122 bps | Monsoon season: 1, Dairy margins: 0. |
| PAT | ₹51 Cr | +5% | Small profit, big sigh of relief. |
| Value-Added Product Sales | ₹413 Cr | +18% | Curd and paneer carried the quarter on their backs. |
| Milk Procurement Volume | 16.1 lakh L/day | -2% | Monsoon cows took personal leave. |
| Milk Sales | 12.1 lakh L/day | +1% | Consumers stayed loyal to their glass. |
| Ice Cream Sales | ₹19.4 Cr | +20% | Melting expectations (literally). |
| Nutrivet Revenue | ₹58 Cr | +34% | Animal feed turning into real feed-forward growth. |
5. Analyst Questions (and the Real Answers)
IIFL:“VAP growth seems stuck below 20%. Why?”Mgmt:“Blame the rain gods.”(Translation:You can plan marketing, not monsoon.*)
JM Financial:“Why only 1% milk growth?”Mgmt:“Price hikes hurt volumes.”(Translation:Inflation made milk less cool than Coke.*)
Ashika:“Ice cream plant update?”Mgmt:“Commissioning by March, just in time to cool Q1 margins.”
Systematix:“Opex up again — any control?”Mgmt:“Operating leverage is exponential, not linear.”(Translation:We’re praying for volumes to do the math.*)
Trinetra Fund:“Lactose-free products?”Mgmt:“Already there — curd and buttermilk have no lactose.”(Translation:We’re lactose-free, but not
