Heritage Foods Limited (HERITGFOOD)
Micro CapFMCG stocks · Micro cap · NSE
Heritage Foods is an integrated dairy company operating across the value chain, from procurement to processing and distribution. It serves 10 million consumers daily through 19 plants and 205,000 retail outlets. The company is expanding its Value-Added Products (VAP) portfolio and operates as a large FMCG brand with 400+ SKUs, supported by a network of 300,000+ farmers.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Bad · 2/100PAT -39% YoY · margin compression · Rev +18% YoY · +16% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,338 Cr | +17.7% | +15.5% |
| EBITDA | ₹62 Cr | -15.1% | +19.2% |
| Operating margin | 4.6% | -140 bps | +10 bps |
| PAT | ₹25 Cr | -39.0% | +4.2% |
| PAT margin | 1.9% | -174 bps | -20 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Q1 FY27 revenue hits record ₹13,381 Mn, up 18% YoY, driven by 39% YoY VAP growth. However, elevated milk procurement costs led to a 16% YoY EBITDA decline and 38% YoY PAT drop.
While Heritage Foods delivered strong top-line growth and continued VAP expansion, profitability was significantly impacted by higher input costs. Management's focus on procurement, market share, and VAP growth, alongside strategic acquisitions and capacity additions, indicates a commitment to long-term strategy, but margin pressure is a concern.
Revenue by Product Mix (FY26)
Latest issuer-disclosed distribution across 4 reported categories.
Expanding Value-Added Products (VAP) Portfolio
VAP revenue grew 39% YoY, reaching 49% of total revenue (incl. Ghee/Butter consumer packs). Strategic acquisitions like Novandie and Peanutbutter & Jelly strengthen premium VAP.
Distribution Expansion & Market Penetration
Integrated distribution network with 7500+ distributors and 205,000 retail outlets, driving balanced growth across the portfolio.
Ice Cream Business Growth
New state-of-the-art ice cream plant started commercial production, targeting ₹500+ crore revenue by FY30.
Heritage Nutrivet Limited
Wholly owned subsidiary's Q1 FY27 revenues up 37% YoY, enhancing livestock health and milk yield, supporting the core dairy business.
Ice Cream Manufacturing Facility
State-of-the-art plant at Shamirpet, Hyderabad, with 31 million litres annual capacity, has started commercial production.
Shift from Unorganized to Organized Dairy Sector
The organized sector is growing, with ~40% of milk sales handled by it, compared to 90% in developed nations, indicating significant headroom for growth.
Growing Urban Consumption & Disposable Income
Urbanization and higher disposable incomes are key factors driving VAP growth and overall dairy demand.
Booming Healthy Food Revolution
The domestic healthy food market is projected to grow significantly, aligning with Heritage's focus on quality and nutritious dairy options.
Government Impetus on Dairy Sector
Government initiatives like NAPD, NPDD, and interest subvention schemes support the dairy sector's growth and production of value-added products.
Elevated Milk Procurement Costs
Q1 FY27 procurement prices increased to ₹46.61/L, up 7% YoY, weighing on profitability.
Constrained Milk Availability
The quarter was marked by constrained milk availability across the industry.
Input Cost Inflation
Input cost inflation temporarily weighed on profitability in Q1 FY27.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The dairy business has seasonal elements, making YoY comparisons crucial for understanding underlying performance. However, QoQ comparisons are also relevant to assess sequential momentum in VAP growth and the recovery of profitability from previous quarters.
Revenue from Operations
₹13,381 Mn, up 18% YoY and 16% QoQ.
Value-Added Products (VAP) Revenue (incl. Ghee/Butter consumer packs)
₹6,322 Mn, up 39% YoY.
VAP Contribution to Total Revenue (incl. Ghee/Butter consumer packs)
49.0% in Q1 FY27, up 8.4% YoY from 40.6% in Q1 FY26.
Milk Procurement Volumes
1.81 MLPD, up 2% YoY.
Confidence in Long-Term Growth
Management is confident that investments in procurement, innovation, premiumization, and distribution will deliver sustainable and profitable long-term growth as industry conditions normalize.
Strategic Priorities for Future Growth
Clear strategic priorities include Margin Expansion, becoming Highly Tech Enabled, expanding Geographical Footprint, and Brand Building.
Value Creation through Flexibility and Innovation
Management aims to create value by staying flexible, introducing innovative products, and expanding into high-growth markets to meet consumer needs.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| VAP Contribution to Total Revenue | 49.0% (incl. Ghee/Butter consumer packs) in Q1 FY27 | Continued increase in VAP contribution, indicating successful premiumization and portfolio diversification. |
| EBITDA Margins | 4.6% in Q1 FY27 | Recovery and expansion of EBITDA margins as milk procurement costs normalize and VAP contribution grows. |
| Milk Procurement Costs | ₹46.61/L, up 7% YoY in Q1 FY27 | Stabilization or decline in milk procurement costs to alleviate pressure on profitability. |
| Ice Cream Revenue | ₹560 Mn (Q1 FY27) | Ramp-up of ice cream revenue towards the FY30 target of ₹500+ crore, indicating successful utilization of new capacity. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
54NeutralSMA20 +10.5% / mo · MACD −
Technical chart
HERITGFOODdaily · 1Y · AUTO+23.4%Daily technical trend read
Bullish setupTrend is constructive — long-term uptrend intact. RSI 60.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 rising (~9.5% over last month) — short-term momentum positive.
- RSI(14) at 60 — rising, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 29% off 52W high · 31% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 31 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 31 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 7/9.
- Balance sheet contributes 10/15 to the score.
- Cash flow contributes 4/10 to the score.
Main drags
- Fair-value margin of safety is negative at -349.2%.
- Quality is weaker at 2/20; verify the latest quarterly trend.
- Growth is weaker at 4/25; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 59th percentile of the scored universe and 16th percentile within FMCG. Main check: results consistency is weak at 47/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: 2 latest quarters had PAT decline worse than 25% YoY.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · FMCG: 16th pctile, median 78 · Micro: 38th pctile, median 73
141 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸7 years of positive FCF.
- ▸4/4 latest quarters had positive YoY revenue growth.
- ▸OPM spread across recent quarters is 3.5%.
Trust risks
- ▸2 latest quarters had PAT decline worse than 25% YoY.
- ▸ROCE trend is -3.9%.
- ▸1/4 latest quarters had positive YoY PAT growth.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 28.00
- P/B
- 3.21
- EV/EBITDA
- 11.40
- Market Cap
- 3548.00Cr
Profitability
- ROE
- 12.60%
- ROCE
- 14.80%
- ROA
- 8.66%
- Dividend Y
- 0.65%
Growth (CAGR)
- Revenue 5Y
- 13.00%
- EPS 5Y
- -3.00%
- Revenue 3Y
- 12.00%
- EPS 3Y
- 34.00%
Balance Sheet
- Debt/Equity
- 0.33
- Interest Coverage
- 12.10×
- Altman Z
- 9.42
- Book Value
- 119.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 7/5
- OCF
- 237.00 Cr
- EPS TTM
- 14.50
Shareholding
- Promoter Hold
- 41.30%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 36%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
Business-comparable names in FMCG, ranked by similarity
Peers
Business-comparable peers in FMCG — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.