Synopsis:
Heritage Foods Ltd’s share is in focus after the company announces significant price reductions across its product range, passing on the full benefits of the Government of India’s recent GST rationalization to consumers ahead of the festive season.
A small-cap dairy stock is drawing attention today as the company announces major price cuts across its product lineup, transferring the full advantage of the Government of India’s recent GST rationalization directly to consumers.
With the market capitalization of Rs. 4,917.26 crore, the shares of Heritage Foods Ltd trading at Rs. 529.90, up by 10.83 percent from its previous day’s close price of Rs. 488.10 per equity share, and it has reached an intraday high of Rs. 541.
What’s the News?
Heritage Foods, one of India’s leading dairy brands, has announced significant price reductions across its product range, passing on the full benefits of the Government of India’s recent GST rationalization to consumers ahead of the festive season. This move aims to make high-quality dairy products more affordable and stimulate demand during the celebrations.
Under the revised pricing, long shelf-life UHT milk has been reduced by Rs. 3 per litre, ghee by Rs. 50 per litre, butter and cheese by Rs. 50 per kg, paneer by Rs. 25 per kg, and ice cream by Rs. 20–35 depending on pack size.
Fresh milk prices remain unchanged as the category was already exempt from GST. This consumer-first initiative ensures families nationwide, including in Tier 2 and Tier 3 cities, can enjoy premium dairy products at lower costs.
Management View
According to Brahmani Nara, Executive Director of Heritage Foods, the GST rate rationalisation is a timely move that allows the company to pass on the full tax benefits to consumers, making staples like paneer, ghee, butter, and cheese more affordable.
She emphasized that this initiative is not just about lower prices but about making the purity and authentic taste of Heritage’s dairy products accessible to families across India, enhancing festive celebrations.
By extending these benefits, Heritage Foods reinforces its commitment to value, quality, and accessibility, ensuring products like ice cream, paneer, and ghee reach consumers through retail and online channels. The move aims to make festive occasions more enjoyable and inclusive nationwide.
Also Read: Stock jumps 4% after company plans to raise over ₹2,000 Cr via preferential issue
About the Company
Heritage Foods, founded in 1992, is one of India’s leading dairy companies, recognized for delivering high-quality, nutritious milk and dairy products. Operating across 17 states, it serves millions of consumers with a wide range of products including milk, curd, butter, paneer, and other value-added items. The brand has earned trust through its focus on purity, freshness, and sustainability.
The company follows a farm-to-home approach, collaborating closely with dairy farmers and supporting them with modern farming practices, training, and fair partnerships. With over 500 quality experts conducting more than 25 stringent daily tests, Heritage ensures a consistent supply of fresh milk. Its commitment to excellence and understanding of consumer needs keeps it at the forefront of India’s dairy industry, offering products that nourish and support families nationwide.
Financial Outlook
In Q1FY26, the company posted revenue of Rs. 1,137 crore, up 10 percent YoY from Rs. 1,033 crore and 8 percent QoQ from Rs. 1,048 crore. Net profit stood at Rs. 41 crore, down 29 percent YoY from Rs. 58 crore but slightly higher QoQ compared to Rs. 38 crore, reflecting steady revenue growth despite a decline in profitability.
A return on equity (ROE) of about 20.2 percent and a return on capital employed (ROCE) of about 25.3 percent demonstrate the company’s strong position. At the moment, the company’s P/E ratio is 27.6x lower as compared to its industry average of 31.3x.
Written by Akshay Sanghavi
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