Heritage Foods approves amalgamation of Heritage Novandie Foods, integrates Livo yogurt; targets 50% value-added share by FY30 (NSE: HERITGFOOD)
Heritage Foods Limited (NSE: HERITGFOOD, BSE: 519552) on 23 October 2026 approved the amalgamation of its wholly owned subsidiary Heritage Novandie Foods Limited, the entity that operates the Livo yogurt brand, according to an exchange filing that day. The filing states the move “aims to simplify the group structure, improve operational efficiency, and support the company’s strategy to increase value-added product contribution to 50% of dairy revenue by FY30.”
Consolidating the value-added platform
The amalgamation comes after a pair of stake increases that gave Heritage Foods full control over the businesses it is now merging. On 10 October 2026, Heritage Foods disclosed that it had paid the purchase consideration for an additional 5.60% stake in Heritage Novandie Foods, with the share transfer then under process (BSE filing, 10 Oct 2026). That step appears to have lifted Heritage’s ownership to 100%, making the subsidiary eligible for amalgamation the following fortnight. Earlier, on 27 July 2026, Heritage Foods completed the acquisition of an extra 20% stake in Peanut Butter and Jelly Limited (PBJL), receiving the credit of equity shares to its demat account and raising its holding to 71% effective that date (BSE filing, 27 Jul 2026). The Q1FY27 sales update on 16 July 2026 had already flagged that both the Novandie stake had been raised to 100% and the PBJL stake to 71%.
Value-added products hit record 44% of revenue, while milk costs squeeze margins
The push into value-added products is visible in the revenue mix. For the quarter ended 30 June 2026, Heritage Foods reported consolidated revenue of ₹13,381 million (+18% YoY) — its highest ever — and value-added products (VAP) contributed a record 44% of revenue, up from 36% a year earlier, driven by volume growth in paneer, curd, buttermilk, lassi, and ice cream (sales update filing, 16 Jul 2026). Net profit for Q1FY27 fell 38% YoY to ₹250 million. Milk procurement costs rose 7.2% YoY to ₹46.61 per litre, pressuring gross margins. The operating margin for the quarter contracted to 5.3%, a 100‑basis‑point decline from the prior-year period (results filing, 16 Jul 2026).
The September‑quarter results, filed on 15 October 2026, showed revenue of ₹13,195.80 million, up 18.6% YoY, and net profit of ₹308.57 million, down 39.5% YoY. Cost of materials consumed reached 72.0% of revenue against 67.2% a year ago, while the EBITDA margin improved 98 basis points sequentially to 5.6% (conc‑call highlight, 19 Oct 2026).
What the filings say to watch next
The amalgamation filing reiterates the company’s stated target of taking the value-added share of dairy revenue to 50% by FY30. The integration of the Livo brand under the parent is presented as an operational step toward that publicly disclosed goal. The filing does not alter the timeline; it only confirms that the corporate structure is being aligned with the strategy already communicated.
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The filing evidence
| Date | What the filing said | Detail | Source |
|---|---|---|---|
| 27 Jul 2026 | Heritage Foods completes acquisition of additional 20% stake in Peanutbutter and Jelly Limited, raising ownership to 71% | Heritage Foods received the credit of equity shares for an additional 20% stake in Peanutbutter and Jelly Limited (PBJL) to its demat account on July 27, 2026, completing the acquisition and making PBJL a 71% subsidiary effective from that date. | filing |
| 10 Oct 2026 | Heritage Foods pays consideration for additional 5.60% stake in subsidiary Heritage Novandie Foods Limited | Heritage Foods Limited has paid the purchase consideration for acquiring an additional 5.60% equity stake in its subsidiary Heritage Novandie Foods Limited, with the share transfer currently under process. | filing |
| 23 Oct 2026 | Heritage Foods approves amalgamation of wholly owned subsidiary Heritage Novandie Foods to integrate Livo yogurt business and strengthen value-added dairy platform. | Heritage Foods Limited has approved the amalgamation of its wholly owned subsidiary, Heritage Novandie Foods Limited (which operates the Livo yogurt brand), with itself. The move aims to simplify the group structure, improve operational efficiency, and support the company's strategy to increase value-added product contribution to 50% of dairy revenue by FY30. | filing |
| 8 Jul 2026 | Q1FY27 earnings call invitation issued; no transcript content available. | filing | |
| 16 Jul 2026 | Heritage Foods reports record Q1FY27 consolidated revenue of ₹13,381 Mn (+18% YoY) but PAT declines 38% YoY to ₹250 Mn due to elevated milk procurement costs; value-added products mix reaches record 44% of revenue. | Heritage Foods announced its unaudited financial results for the quarter ended June 30, 2026. Consolidated revenue grew 18% YoY to ₹13,381 million (highest ever), while net profit fell 38% YoY to ₹250 million. Value-added products (VAP) contributed a record 44% of revenue (vs 36% last year), driven by strong volume growth in paneer, curd, buttermilk, lassi, and ice cream. Milk procurement costs rose 7.2% YoY to ₹46.61/liter, pressuring gross margins. The company also increased its stake in Novandie Foods to 100% and in Peanut Butter and Jelly Limited to 71%. | filing |
| 16 Jul 2026 | Consolidated revenue grew 17.7% YoY to ₹13,380.94 mn, but OPM contracted 100bps to 5.3%, and PAT fell 38.4% YoY to ₹249.71 mn, driven by raw material cost inflation and modest operating deleverage. | filing | |
| 20 Jul 2026 | Heritage Foods posts highest-ever quarterly revenue driven by 40% VAP growth, though milk procurement inflation caps margins at 4.6%. | filing | |
| 21 Jul 2026 | Heritage Foods posts record quarterly revenue of ₹1,338 Cr driven by 40% VAP surge, but margin pressure from elevated milk costs persists; PAT at ₹15 Cr. | filing | |
| 15 Oct 2026 | Q2FY27 revenue rose 19% YoY to INR 13,196 million as VAP volumes and pricing strengthened, but milk-cost inflation compressed gross margin by 271bps and PAT fell 39% despite EBITDA margin recovering 98bps QoQ to 5.6%. | filing | |
| 15 Oct 2026 | Q2FY27 consolidated revenue rose 18.6% YoY to ₹13195.80 million, but PAT fell 39.5% to ₹308.57 million as cost of materials reached 72.0% of revenue versus 67.2% a year ago, extending the margin squeeze. | filing | |
| 19 Oct 2026 | Heritage Foods delivered 19% YoY revenue growth to ₹1,319.6 Cr in Q2FY27 as broad-based value-added product momentum (+31% YoY) and staggered retail price hikes drove a 98 bps sequential EBITDA margin recovery to 5.6% despite severe 11% milk procurement cost inflation. | filing |
Quick answers
- What did Heritage Foods disclose?
- Heritage Foods Limited (NSE: HERITGFOOD, BSE: 519552) on 23 October 2026 approved the amalgamation of its wholly owned subsidiary Heritage Novandie Foods Limited, the entity that operates the Livo yogurt brand, according to an exchange filing that day.
- What are the key numbers?
- The amalgamation comes after a pair of stake increases that gave Heritage Foods full control over the businesses it is now merging. On 10 October 2026, Heritage Foods disclosed that it had paid the purchase consideration for an additional 5.60% stake in Heritage Novandie Foods, with the share transfer then under process (BSE filing, 10 Oct 2026).
- What does Heritage Foods say comes next?
- The amalgamation filing reiterates the company’s stated target of taking the value-added share of dairy revenue to 50% by FY30. The integration of the Livo brand under the parent is presented as an operational step toward that publicly disclosed goal.
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