LT Foods’ net profit rises 10 per cent to Rs 180 crore in Q2 FY27, while first-half revenue increases 22 per cent to Rs 6,414 crore amid growth in domestic and overseas markets
LT Foods reported a 17 per cent year-on-year increase in consolidated revenue to Rs 3,253 crore in the second quarter of FY27, supported by growth in India and overseas markets. Net profit rose 10 per cent to Rs 180 crore, while earnings before interest, tax, depreciation and amortisation (Ebitda) increased 13 per cent to Rs 358 crore in the quarter ended 30 September 2026.
For the first half of FY27, the company’s consolidated revenue grew 22 per cent to Rs 6,414 crore. Profit after tax (Pat) increased 9 per cent to Rs 364 crore, compared with Rs 332 crore in the corresponding period last year.
India emerged as a key growth driver, with the company recording 24 per cent year-on-year growth in the domestic market during H1 FY27. The performance came amid efforts to strengthen its branded rice portfolio, expand distribution and introduce products across consumer segments.
However, higher brand investments and changes in the organic food business weighed on profitability margins during the first half.
Domestic Business Gains Market Share
LT Foods’ branded portfolio grew nearly 8 per cent in the first half, compared with estimated category growth of around 1.3 per cent, according to the company. Its Daawat brand recorded a market share of 22.3 per cent as of September 2026, based on the AC Nielsen Retail Survey Audit. The company also reported a year-to-date market-share gain of 1.4 percentage points against the year-ago period.
Household penetration expanded to 67.5 lakh households, marking a 20 per cent increase over the preceding 12 months, according to Kantar Household Panel data cited by the company.
During the quarter, LT Foods expanded its domestic product range with the introduction of Daawat Delight and Daawat Rozana Platinum. It also added new offerings to its biryani portfolio, including Daawat Biryani Masala Paste.
Its health-oriented rice products, including Daawat Quick Cooking Brown Rice, Red Rice and Black Rice, registered double-digit growth. Quick Cooking Brown Rice accounted for more than 70 per cent of its category in general trade and modern retail, the company said.
The Daawat I’m Organic range held nearly 18 per cent of the organic rice segment on key e-commerce platforms. Meanwhile, Daawat Biryani Kits recorded double-digit value growth in H1 FY27 and commanded more than 70 per cent share on key e-commerce platforms, according to the company.
Overseas Markets Support Revenue Growth
LT Foods’ basmati and specialty rice business recorded 27 per cent year-on-year growth in the first half. Growth stood at 22 per cent on a normalised basis, including Golden Star, the company said.
Its ready-to-eat, ready-to-cook and ready-to-heat portfolio grew 8 per cent to Rs 102 crore. The organic food and ingredients business generated revenue of around Rs 520 crore as the company undertook a strategic remodelling of the segment.
North America remained an important contributor, with first-half growth of 20.8 per cent, or 13.3 per cent on a normalised basis, including Golden Star. The Royal brand retained more than 60 per cent market share, while Golden Star continued to lead the US jasmine rice market, according to LT Foods.
Golden Star also entered the ready-to-heat category with microwaveable rice cups in three varieties: Jasmine Rice, Coconut Jasmine Rice and Jasmine Fried Rice.
In the Middle East and other international markets, revenue increased 24.6 per cent year-on-year during H1 FY27. In the UAE, LT Foods expanded its health-focused range with the launch of Daawat Quick Cooking Black Rice and Red Rice. Its Daawat Mazza brand recorded its highest-ever offtakes at Othaim Retail in Saudi Arabia.
The company also pursued consumer and retail initiatives in the Netherlands and Germany. In the UK, growth was reported across pack sizes and key Daawat categories through independent retailers and grocery channels.
Higher Investments Weigh On Margins
Despite the growth in revenue, LT Foods faced pressure on profitability during the first half. Gross profit rose 15 per cent to Rs 2,087 crore, but the gross profit margin declined 190 basis points year-on-year to 32.5 per cent.
The company attributed the contraction to a change in shipment terms for related-party transactions from cost, insurance and freight (CIF) to cost and insurance (C&I).
Ebitda increased 17 per cent to Rs 721 crore in H1 FY27. However, the Ebitda margin narrowed by 50 basis points to 11.2 per cent, which the company attributed to the restructuring of its organic business and higher brand investments.
The Pat margin fell to 5.7 per cent from 6.3 per cent a year earlier.
Earnings per share rose 9 per cent to Rs 5.28 during the six-month period. Cash profit, however, declined 34 per cent year-on-year to Rs 254 crore from Rs 385 crore in H1 FY26.
Return on capital employed improved to 22.4 per cent from 22 per cent, while return on equity declined to 15.7 per cent from 16.5 per cent. The interest coverage ratio increased to 13.8 times from 11.8 times.
LT Foods, which operates across basmati and specialty rice, organic food ingredients and rice-based convenience products, reported consolidated revenue of Rs 11,023 crore in FY26. Its first-half FY27 performance reflects continued expansion in its domestic branded portfolio and international operations, alongside investments in product development and distribution.
