Heritage Foods Q1 Results FY27: Net Profit Falls 40% to Rs 25 Crore Despite Revenue Growth of 17%

Heritage Foods Q1 results FY27 were announced on Thursday, 16 July 2026, with the dairy and food products company reporting a net profit of Rs 25 crore, down 40% from Rs 42 crore in the year ago quarter. Revenue in the Heritage Foods Q1 results FY27 grew 17% year on year to Rs 1,338 crore from Rs 1,137 crore, even as gross profit fell 36% to Rs 35 crore from Rs 55 crore.

Shares of Heritage Foods were largely steady, edging up 0.24% to close at Rs 335.65, a muted reaction relative to the scale of the profit decline reported despite healthy revenue growth for the quarter.

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Heritage Foods Q1 Results FY27 Key Takeaways

Here are the most important numbers and takeaways from the Heritage Foods Q1 results FY27 at a glance.

• Net Profit (PAT): Rs 25 Cr in Q1 FY27 versus Rs 42 Cr in Q1 FY26, down 40% year on year.
• Revenue: Rs 1,338 Cr in Q1 FY27 versus Rs 1,137 Cr in Q1 FY26, up 17% year on year.
• Gross Profit: Rs 35 Cr in Q1 FY27 versus Rs 55 Cr in Q1 FY26, down 36% year on year.
• Results announced on Thursday, 16 July 2026 for the quarter ended 30 June 2026.
• Heritage Foods share price was largely steady, edging up 0.24% to close at Rs 335.65 after the Heritage Foods Q1 results FY27, a muted reaction relative to the scale of the profit decline.

Heritage Foods Q1 Results FY27 Financial Highlights

The June quarter showed healthy revenue growth alongside a sharp decline in profitability, a combination central to the Heritage Foods Q1 results FY27. The table below summarises the numbers against the year ago quarter.

Metric	Q1 FY27	Q1 FY26	YoY Change
Revenue	Rs 1,338 Cr	Rs 1,137 Cr	+17%
Gross Profit	Rs 35 Cr	Rs 55 Cr	-36%
Net Profit (PAT)	Rs 25 Cr	Rs 42 Cr	-40%

Revenue growing 17% while gross profit fell 36% in the Heritage Foods Q1 results FY27 points to significant margin compression, likely from higher raw milk procurement costs relative to the pace of price increases the company was able to pass through to consumers.

Heritage Foods Q1 Results FY27 Performance Analysis

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The gap between healthy revenue growth of 17% and the sharp 36% decline in gross profit is the central story in the Heritage Foods Q1 results FY27, suggesting raw milk and other input costs rose faster than the company’s ability to increase product prices during the quarter.

As a dairy company, Heritage Foods’ profitability is closely tied to the spread between raw milk procurement costs and finished product pricing, and this quarter’s margin compression suggests that spread narrowed significantly, a common challenge in the dairy industry during periods of tight milk supply.

PAT declining 40% in the Heritage Foods Q1 results FY27, somewhat less severe than the 36% gross profit decline, suggests limited offsetting benefit below the gross profit line, meaning the margin pressure flowed through relatively directly to the bottom line this quarter.

Heritage Foods Q1 Results FY27: Key Business Factors

1. Rising Raw Milk Procurement Costs

The sharp gross profit decline in the Heritage Foods Q1 results FY27 points to raw milk procurement costs rising faster than the company’s ability to pass through price increases, compressing the core dairy processing margin.

2. Healthy Underlying Volume Growth

Revenue growth of 17% suggests healthy underlying volume growth or product mix improvement, a positive signal for demand even as near-term profitability came under pressure.

3. Margin Pressure Flowing Through to Net Profit

With limited offsetting benefit below the gross profit line, the margin compression in the Heritage Foods Q1 results FY27 flowed through relatively directly to the 40% net profit decline this quarter.

Dividend Details

No new dividend was announced specifically alongside the Heritage Foods Q1 results FY27. Given the profit decline this quarter, near-term capital allocation is likely to prioritise managing raw material cost pressures.

Heritage Foods Q1 Results FY27 Outlook for the Full Year

Whether Heritage Foods can implement pricing actions to restore its margin spread will be the key factor determining the trajectory into the September quarter. Investors should track raw milk procurement cost trends, any announced price increases across the company’s dairy product portfolio, and overall margin recovery in coming quarters.

Heritage Foods Stock Performance After the Q1 Results

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Heritage Foods share price was largely steady, edging up 0.24% to close at Rs 335.65 after the Heritage Foods Q1 results FY27, a muted reaction relative to the scale of the profit decline.

The relatively contained stock reaction, despite a significant profit decline, may reflect the market’s understanding that raw milk cost pressures are an industry-wide, largely cyclical challenge rather than a company-specific concern.

Investors can compare the trend of the counter with the Nifty FMCG index to judge how the stock is placed relative to the broader market after the Heritage Foods Q1 results FY27.

Key Risks

Investors going through the fine print of the Heritage Foods Q1 results FY27 should also weigh the following risks.

1. Continued Raw Milk Cost Pressure

If raw milk procurement costs remain elevated beyond the Heritage Foods Q1 results FY27, the company’s margin recovery could be delayed, keeping profitability under pressure in coming quarters.

2. Limited Pricing Power in Competitive Dairy Market

The Indian dairy industry is highly competitive, and Heritage Foods’ ability to fully pass through rising input costs via price increases depends on competitive dynamics and consumer price sensitivity.

3. Seasonal Milk Supply Variability

Raw milk supply and pricing can vary seasonally and regionally, introducing potential volatility to the company’s procurement costs and margins across different quarters.

Conclusion

Heritage Foods Q1 results FY27 show PAT down 40% to Rs 25 crore despite revenue growth of 17% to Rs 1,338 crore, driven by a 36% decline in gross profit reflecting raw milk cost pressure. Healthy revenue growth is the positive underlying signal in the Heritage Foods Q1 results FY27, against significant near-term margin compression. Investors should track raw material cost trends and consult a SEBI-registered advisor before acting on the numbers.

Frequently Asked Questions on Heritage Foods Q1 Results FY27

When were the Heritage Foods Q1 Results FY27 announced?

Ans. The Heritage Foods Q1 results FY27 were announced on Thursday, 16 July 2026, for the quarter ended 30 June 2026.

What is the PAT in Heritage Foods Q1 Results FY27?

Ans. The PAT in Heritage Foods Q1 results FY27 fell 40% year on year to Rs 25 crore from Rs 42 crore.

What was the revenue in Heritage Foods Q1 Results FY27?

Ans. Revenue in the Heritage Foods Q1 results FY27 grew 17% year on year to Rs 1,338 crore from Rs 1,137 crore.

Why did Heritage Foods profit fall despite revenue growth in Q1 FY27?

Ans. PAT fell 40% in the Heritage Foods Q1 results FY27 despite revenue growth of 17%, as gross profit declined 36%, suggesting raw milk procurement costs rose faster than the company’s ability to raise product prices.

How did Heritage Foods share price react to the Q1 Results FY27?

Ans. Heritage Foods share price was largely steady, edging up 0.24% to close at Rs 335.65 after the Heritage Foods Q1 results FY27.

Is Heritage Foods a good buy after the Q1 Results FY27?

Ans. The Heritage Foods Q1 results FY27 show healthy revenue growth offset by significant margin compression from raw milk cost pressure. This article is for educational purposes only. Consult a SEBI-registered advisor before investing.

What was the gross profit in the Heritage Foods Q1 results FY27?

Ans. Gross profit for the June 2026 quarter stood at Rs 35 Cr in Q1 FY27, compared with Rs 55 Cr in Q1 FY26, down 36% year on year.

Was any dividend announced with the Heritage Foods Q1 results FY27?

Ans. No new dividend was announced specifically alongside the Heritage Foods Q1 results FY27. Investors should track official NSE and BSE announcements for any future dividend declarations.