L T Foods

LT Foods reported a strong financial performance for FY26, with revenue including other income growing 26% YoY to ₹11,023 crores. Normalized revenue growth stood at 19%. Gross profit increased to ₹3,692 crores, achieving a normalized gross profit margin of 35.3%. EBITDA rose to ₹1,236 crores, with a normalized EBITDA margin of 11.8%, while PAT reached ₹625 crores. The company also improved its working capital days to 176 from 196 last year and maintained a healthy net debt to EBITDA ratio of 0.6x.

The core Basmati and specialty rice business continued its strong performance, contributing 88% of revenue and delivering 29% revenue growth (21% normalized) to ₹9,742 crores, with an EBITDA margin of 12.3%. North America remained the largest market, contributing 48% of revenue and growing 53% (9% normalized). The India business showed robust growth with 10% value and 12% volume growth, expanding household reach to 64.4 lakhs and securing a 23.7% market share. Europe also demonstrated significant growth with 34% revenue increase in FY26.

LT Foods is aggressively investing in brand, innovation, and global expansion. The RTH and RTC segment, growing 2.5x over the last five years to ₹187 crores in FY26, is a key focus area, with new products like Biryani Kit and Cuppa Rice resonating well. The company is building new capacities, including an RTH facility in the US and packaging facilities in the UK, to support future growth. The organic segment, despite current stress, crossed ₹1,016 crores in revenue, reflecting commitment to responsible sourcing.

Reported margins for FY26 and Q4 FY26 were impacted by several factors, including US tariff pass-through, increased brand and marketing investments, the investment phase in LT Foods UK, and remodeling in the organic segment. The organic segment's EBITDA is also under pressure from currency fluctuations and commodity price increases. Freight costs, particularly to the Middle East, saw a dramatic increase of 10x-15x, posing a challenge in that market. Management aims to improve EBITDA margins to 12% in the next year and maintain gross margins at 33-33.5%.

The company spent approximately ₹350 crores on capex in FY26, primarily for land acquisition and RTH facility in the US, packaging in the UK, and warehouses in India. A similar capex range is expected for FY27, with a long-term trajectory of ₹250 crores annually. This investment supports capacity expansion, targeting 50,000-60,000 tons of rice capacity growth per year. The company expects continued double-digit growth, driven by global demand, new product launches, and distribution expansion, with margins gradually improving as brand investments normalize.