LT Foods (LTFOODS) Status Update summary

Overview of recent U.S. countervailing duty (CVD) notice

• A preliminary CVD of 340% was imposed by the U.S. Department of Commerce on organic soybean meal exports from India for the 2023 review period, impacting sales worth INR 50 crore.

• The CVD is currently only applicable to 2023 sales; future years (2024, 2025) will be reviewed separately, and the final outcome for 2023 is expected by December 2025.

• The company is actively contesting the preliminary findings, aiming to reduce the duty to around 3% by providing additional data and legal representation.

• Organic soybean exports to the U.S. represent less than 1% of consolidated revenue and about 5% of the organic business, limiting the financial impact.

• No material impact is expected on cash flow or future earnings, and alternative sourcing from Uganda is being considered to mitigate risk.

Financial and operational impact

• The potential financial exposure from the CVD is limited to the 2023 period and is not expected to affect ongoing or future business materially.

• The Uganda facility is not subject to the U.S. CVD, providing flexibility to shift operations if needed.

• No provisioning has been made yet as the notice is preliminary, and management is confident in a favorable resolution.

• Other product lines and exports to the U.S. are unaffected by this CVD, as it applies only to organic soybean.

• Any duty increases in other segments are typically passed on to customers, minimizing margin impact.

Additional business updates

• No exposure or impact from the Iran conflict or related port disruptions, as there is no business with Iran.

• Domestic basmati rice price declines due to Middle East turmoil are not expected to affect margins due to strong brand positioning.

• Inventory management fees from a U.S. associate contributed significantly to other income in FY 2026, but this will end as consolidation occurs.