L T Foods H1FY27 Results (NSE: LTFOODS)
Signal: Growth decelerated
The read
The trajectory remains growth-positive but less profitable: H1 revenue accelerated to ₹6,414 crore, led by 27% basmati growth and 24% India growth, while EBITDA margin contracted 50bps to 11.2% because of shipment-term changes, organic remodelling and brand investment; PAT growth was consequently limited to 9%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹6,414 Cr | 22% | N/A |
| Net profit | ₹364 Cr | 9% | |
| EPS | ₹5.28 | 9% | |
| EBIT margin | 11.2% |
P&L walk
Consolidated revenue increased 22% to ₹6,414 crore, led by basmati and specialty rice growth of 27%, while gross margin fell 190bps to 32.5% and EBITDA margin declined 50bps to 11.2% because of shipment-term changes, organic-segment remodelling and higher brand investment; PAT still rose 9% to ₹364 crore.
Segments
Basmati and other specialty rice was the main growth engine at 27% H1FY27 growth, while Organic Foods & Ingredients declined 11% during strategic remodelling; RTH/RTC grew 8% to ₹102 crore, making organic the principal drag on the consolidated growth mix.
Key positives
- Revenue reached ₹6,414 crore, up 22% YoY, with basmati and other specialty rice growing 27% and India growing 24%.
- Branded portfolio growth of nearly 8% exceeded category growth of approximately 1.3%, supporting a 140bps YTD market-share gain to 22.3%.
- Household penetration expanded 20% over 12 months to 67.5 lakh households, while Quick Cooking Brown Rice retained more than 70% share in General Trade and Modern Retail.
- PAT increased 9% to ₹364 crore and EPS increased 9% to ₹5.28, tracking earnings without a disclosed dilution signal.
Key concerns
- Gross margin contracted 190bps to 32.5%, attributed to the change in related-party shipment terms from CIF to C&I.
- EBITDA margin declined 50bps to 11.2% even as revenue grew 22%, reflecting organic-segment remodelling and higher brand investments.
- Organic Foods & Ingredients revenue declined 11% during strategic remodelling, creating a drag on the otherwise broad-based growth profile.
- PAT growth of 9% lagged revenue growth of 22%, showing weaker profit conversion despite EBITDA growth of 17%.
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