India's Heritage Foods posts quarterly profit fall on higher costs, stiff competition

Hatsun Agro Product

28/01/2026 12:27

Jan 28 (Reuters) - Indian dairy maker Heritage Foods HEFI.NS reported a 20% fall in quarterly profit on Wednesday, hurt by higher milk procurement prices and stiff competition.

The company reported net profit fell to 346.5 million rupees ($3.78 million) in the third quarter ended December 31 from 430.5 million rupees a year ago.

Revenue rose 8% to 11.19 billion rupees, slower than the 10% growth last year, as the company said it faced heightened competition during the quarter.

For further results highlights, click here. (FULL STORY)

KEY CONTEXT

Demand for everything from packaged milk and curd to cottage cheese and yogurts has gone up sharply, as India's health-conscious consumers turn to these items to improve their protein consumption.

The increased demand has squeezed supply, resulting in higher costs linked to milk procurement for Heritage, which competes with Hatsun Agro HAPL.NS and Amul. Milk procurement costs, the price at which companies source raw milk from farmers, rose 9% from a year ago, the company said.

"Q3 was characterised by an exceptionally tight industry supply environment, marked by milk shortages, elevated procurement costs, and heightened competitive intensity," Brahmani Nara, Heritage executive director, said.

PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Price/Sales
Revenue growth (%)
Profit growth (%)
Mean rating*
# of analysts
Stock to price target**
Div yield (%)
Heritage Foods Ltd
HEFI.NS
14.71
8.69
NULL
11.66
21.60
Buy
2
0.69
0.63
Dodla Dairy Ltd
DODL.NS
22.42
14.64
NULL
15.62
18.29
Strong Buy
4
0.76
0.33
Hatsun Agro Product Ltd
HAPL.NS
41.97
16.77
NULL
11.36
28.39
Hold
2
1.02
1.19
Parag Milk Foods Ltd
PAMF.NS
16.27
9.77
NULL
NULL
NULL
Strong Buy
1
0.59
0.38

* The mean of analyst ratings standardized to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

OCTOBER TO DECEMBER STOCK PERFORMANCE

 -- All data from LSEG
 -- ($1 = 91.8990 Indian rupees)

Heritage Foods Stock Performance Q3 2025 https://tmsnrt.rs/3MaBIEA

 (Reporting by Komal Salecha in Bengaluru and Praveen Paramasivam in Chennai; Editing by Ronojoy Mazumdar and Janane Venkatraman)

 ((Komal@thomsonreuters.com;))