LT Foods’ Q2 profit growth slows to 9% despite 30% surge in revenue

LT Foods reported a 30% year-on-year jump in consolidated revenue to ₹2,772 crore for the quarter ended September 2025, driven by strong growth across geographies and product categories. However, profit growth lagged behind, with net profit rising only 9% year-on-year to ₹164 crore, as margins came under pressure. PAT margin fell from 7.1% to 5.9% in Q2.

For the first half of FY26, the company’s revenue grew 25% to ₹5,273 crore, while profit after tax (PAT) increased 9% to ₹332 crore. EBITDA for H1 stood at ₹619 crore, up 20% year-on-year, but EBITDA margin slipped 40 basis points to 11.7%. PAT margin for the same period contracted 90 basis points to 6.3% from 7.2%.

Ashwani Arora, managing director and CEO of LT Foods, said the company’s performance reflected the “strength and agility” of its business model. “We have concluded the first half of FY26 on a strong and positive trajectory. Our resilient business model, unwavering commitment to quality, and deep consumer insights have collectively enabled us to deliver a robust 25% growth in revenue,” Arora said.

The company’s flagship Basmati and Other Specialty Rice business recorded a 24% year-on-year growth in H1, with normalised growth of 11.4% excluding the impact of its Golden Star acquisition and U.S. tariff effects. The organic food segment continued to perform well, rising 26% year-on-year.

In India, LT Foods’ flagship brand DAAWAT held a 26.1% market share as of September 2025, according to AC Nielsen Retail Survey data. The company also expanded its ready-to-eat and ready-to-cook portfolio with the launch of DAAWAT Thai Green Curry Rice Kit.

The U.S. market remained a strong growth driver, where its brand Royal now commands a 54% market share. The company’s full acquisition of Golden Star has made it the leading Jasmine rice brand in the U.S. Meanwhile, Europe and the U.K. together posted a 31% revenue increase, aided by new investments and market expansion.

During the quarter, LT Foods also entered the canned foods segment through the €25 million acquisition of Hungary-based Global Green Kft, marking its foray into the ready-to-eat and ready-to-heat segment in Europe. “This acquisition is in line with our long-term strategy of growth through packaged food,” Arora said.

While the company maintained a strong topline trajectory, profitability pressures were evident with both gross and EBITDA margins narrowing slightly due to higher brand investments and input costs. Gross profit for Q2 stood at ₹948 crore, up 30% year-on-year, maintaining a margin of 34.2%.

As the company looks ahead, Arora said the focus remains on building a “future-ready LT Foods” through brand strengthening, digital transformation, and strategic partnerships.