Dairy company Heritage Foods’ consolidated net profit for the September quarter declined 39% year-on-year (YoY) to ₹30.85 crore, even as revenue from operations rose 19% to ₹1,319.6 crore.

The revenue growth and a 98bps sequential recovery in EBITDA (earnings before interest, taxes, depreciation and amortisation) margin to 5.6% came in the face of elevated milk procurement costs. The performance reflects the resilience of Heritage’s integrated dairy model, strong consumer franchise and continued traction across the VAP portfolio, Executive Director Brahmani Nara said.

On a sequential basis, net profit was 24% higher and revenue flat. Shares of the company closed 4% lower on Thursday at ₹397.90 apiece on the BSE.

The company said milk procurement volumes increased 7% YoY in Q2 FY27 and 4% in H1 FY27 despite monsoon-related supply constraints. Village-level outreach is being intensified to strengthen milk availability and farmer engagement.

Average landed milk procurement prices rose 11% YoY to ₹47.73/litre in Q2 FY27, which is ₹4.74/litre higher compared to Q2 FY26, on the back of sustained demand, limited improvement in milk arrivals and higher feed and fodder costs, Heritage Foods said.

Ms. Nara said while near-term cost pressures persist “we remain confident in our ability to drive sustainable margin improvement through continued premiumisation, tight cost control measures, improved operating leverage and disciplined execution.” The focus remains on strengthening the procurement ecosystem, expanding VAP capacity and accelerating innovation across premium and nutrition-led categories.

Broad-based volume growth, calibrated pricing and an increasing contribution from higher-value products were strengthening Heritage’s business mix and positioning the company for sustained profitability improvement, she said.