LT Foods (LTFOODS) Q2 25/26 earnings summary

Executive summary

• Achieved record quarterly revenue of INR 2,772 crore in Q2 FY26, up 30% year-over-year, and H1 FY26 revenue of ₹5,273 crore, up 25% year-over-year, driven by brand investments and global expansion.

• Gross profit rose 27% and PAT increased 9% in H1 FY26; five-year compounded revenue growth at 16% and PAT growth at 21%.

• Expanded global presence with the Global Green acquisition, adding €40 million revenue and a new manufacturing hub in Hungary.

• Maintained leadership in Basmati rice with strong market shares in India, North America, and Europe, and continued innovation in organic and ready-to-eat/cook segments.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025.

Financial highlights

• Q2 FY26 EBITDA at INR 316 crore, up 24% year-over-year; H1 FY26 EBITDA at INR 619 crore, up 20% year-over-year.

• Gross margin improved year-over-year to 34.4% due to lower input costs; EBITDA margin slightly decreased to 11.4%-11.7% due to higher brand and digital investments.

• Q2 FY26 PAT was ₹164 crore, up 9% year-over-year; consolidated net profit for Q2 FY26 was ₹16,385.37 lakhs.

• Working capital payable days increased to 43 from 28 year-over-year; inventory days reduced from 194 to 187.

• Consolidated cash and cash equivalents increased to ₹61,122.08 lakhs as of September 30, 2025.

Outlook and guidance

• Optimistic outlook for India, Europe, and rest of world; U.S. market outlook to be reassessed in next two months due to tariff negotiations.

• Targeting EBITDA margin above 14% in the next four years, with a focus on premiumization, product portfolio expansion, and digital transformation.

• Organic segment expected to rebound in H2 FY26, with margins normalizing by Q4.

• Ready-to-eat/cook segment to see growth from Q4 as new capacity comes online.

• Management does not expect a material impact from the US countervailing duty on Ecopure Specialities Limited's exports.