North America, India and global specialty rice demand fuel growth as FMCG major expands premium portfolio and strengthens international supply chain
LT Foods, the global FMCG company best known for its specialty rice brands, reported a strong start to FY27 with consolidated revenue rising 26 per cent year-on-year to Rs 3,161 crore for the quarter ended June 30, 2026. Profit after tax (PAT) increased 9 per cent to Rs 183 crore, while Ebitda grew 20 per cent to Rs 363 crore, reflecting sustained demand for premium Basmati rice and continued expansion across key international markets.
The company said revenue growth was supported by strong performance in its core Basmati and Specialty Rice business, continued premiumisation, product innovation and distribution expansion. Total revenue increased from Rs 2,501 crore in the corresponding quarter last year, while Ebitda margin stood at 11.5 per cent and PAT margin at 5.8 per cent.
Basmati Business Remains Key Growth Driver
The Basmati and Other Specialty Rice segment continued to anchor the company’s performance, recording 34 per cent year-on-year growth with revenue of Rs 2,845 crore. LT Foods attributed the increase to sustained global demand for premium rice products across its major markets.
The Ready-to-Eat (RTE) and Ready-to-Cook (RTC) portfolio generated revenue of Rs 53 crore during the quarter, up 13 per cent year-on-year, supported by products including Royal Ready-to-Heat, Cuppa Rice, Biryani Kits and Kari Kari rice snacks.
India And North America Post Robust Growth
LT Foods said its India business recorded 23 per cent value growth and 12 per cent volume growth during the quarter. The company increased its retail market share to 23.1 per cent from 22.4 per cent a year earlier, aided by premiumisation, wider household penetration and stronger distribution. Kari Kari also expanded its reach through its onboarding with IndiGo Airlines.
North America remained the company’s largest overseas market, registering 49 per cent growth, or 27 per cent on a normalised basis excluding the Golden Star acquisition. Royal retained over 60 per cent market share, while Golden Star continued as the leading Jasmine Rice brand in the US. During the quarter, LT Foods also began construction of a 156,000 sq ft distribution warehouse in Missouri City, Texas, expected to become operational in January 2027.
Europe Expansion And Middle East Launches
The company said Europe and the UK remained in an investment phase as it focused on expanding retail partnerships and consumer engagement. During the quarter, LT Foods introduced three South Indian rice varieties—Idli Rice, Ponni Rice and Matta Rice—in European markets.
In the Middle East, it expanded its portfolio in Oman with the launch of Extra Long Grain Basmati and Rozana rice across modern retail outlets. Meanwhile, the Rest of the World business delivered 50 per cent year-on-year growth, led by the Pacific region, Indonesia and Mainland Asia.
Company Sees Limited Geopolitical Impact
Managing Director and CEO Ashwani Arora said the company had not been materially affected by geopolitical tensions linked to the Iran conflict, citing its diversified sourcing network and geographically balanced operations.
He added that LT Foods would continue to strengthen its leadership in specialty rice while scaling its organic foods and convenience food businesses, alongside investments in sustainability and digital transformation.
Margins Under Pressure Despite Profit Growth
Despite higher revenue and earnings, gross profit margin declined 210 basis points to 32.6 per cent, primarily due to a change in shipment terms with related parties. Ebitda margin slipped 60 basis points to 11.5 per cent owing to the remodelling of its Organic Foods segment, while PAT margin eased 90 basis points to 5.8 per cent.
The company maintained a healthy balance sheet, with net debt-to-equity improving to 0.15 from 0.18 a year earlier and net debt-to-Ebitda reducing to 0.48 from 0.59. Return on capital employed remained steady at 21.1 per cent.
