LT Foods (LTFOODS) Q2 26/27 earnings summary

Executive summary

• H1 FY27 revenue grew 22% to ₹6,414 crore and PAT rose 9% to ₹364 crore; revenue growth was 18% normalized for Golden Star consolidation.

• International markets contributed 71% of H1 revenue; net cash was ₹247 crore.

• Strategic priorities include strengthening rice leadership, expanding convenience and value-added foods, building brands and digital capabilities, and improving international profitability.

Financial highlights

• Q2 revenue from operations was ₹3,234.14 crore; total income was ₹3,252.51 crore, EBITDA ₹358 crore and PAT ₹180.20 crore.

• Q2 EBITDA grew 13% YoY; EBITDA margin was 11.0% versus 11.4% YoY, while gross margin was 32.5% versus 34.2%.

• H1 revenue from operations was ₹6,385.97 crore and PAT ₹363.64 crore; presentation revenue was ₹6,414 crore, up 22%, with EBITDA of ₹721 crore, up 17%.

• H1 EBITDA margin was 11.2% versus 11.7%; margin pressure reflected Organic business remodelling and brand investment, while shipment-term changes affected reported gross margin.

• H1 brand investment rose 29% to ₹139 crore; FY advertising spend is planned at 2.3% of revenue versus 2.1% last year.

Outlook and guidance

• H2 performance is expected to be very similar to H1; no timeline was given for the medium-term consolidated EBITDA margin target of 13.5%–14%.

• Organic business targets 10%–11% EBITDA margin in the next two years; U.K. operations are expected to become profitable next year as scale develops.

• Management expects margins to improve as Europe, the Middle East and organic operations scale; mature Basmati markets including India and the U.S. generate EBITDA margins above 15%.

• Crop-related price increases are being passed through as the new harvest enters the market.