Shares of Heritage Foods declined sharply by over 9% during early morning trade, as investors reacted to poor profitability in the company’s Q3 FY26 consolidated results, despite steady growth in revenue. As of 9:36 AM, the shares were trading 8.98% lower at Rs 361.05.
Heritage Foods reported an 8.2% year-on-year rise in revenue for the December quarter, with consolidated revenue coming in at ₹1,119 crore compared with ₹1,034 crore in the same period last year. The topline growth reflected stable demand across its core dairy and value-added products portfolio, supported by volume traction in key markets.
However, profitability came under significant pressure during the quarter. EBITDA fell sharply by 42.9% on a YoY basis to ₹62.9 crore from ₹110 crore. As a result, the EBITDA margin contracted to 5.6% from 10.6% a year ago, indicating higher operating costs and margin stress during the period.
The impact of lower operating profitability was also visible at the bottom line. Net profit for Q3 FY26 declined 19.5% YoY to ₹34.6 crore, compared with ₹43 crore reported in the corresponding quarter of the previous financial year.
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