L T Foods Q1 FY27 Results (NSE: LTFOODS)
Signal: Steady quarter
The read
Revenue growth remained robust at 28% YoY, but PAT growth slowed to single digits (8.9%) as other income collapsed and depreciation/finance costs surged. EBITDA margin improved 46bps YoY through cost control, while gross margin contracted 131bps YoY on higher raw material costs. Contingent liabilities (Daawat insurance claim, Ecopure CVD) persist.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,151.83 Cr | 27.9% | 8.4% |
| EBIT | ₹353.87 Cr | 33.4% | |
| Net profit | ₹183.45 Cr | 8.9% | |
| EPS | ₹5.28 | 8.9% | |
| EBIT margin | 11.23% |
P&L walk
Revenue grew 27.9% YoY (volume-led). Gross margin contracted 131bps YoY as raw material cost ratio rose. EBITDA margin expanded 46bps through operating leverage (employee cost & other expenses grew slower). PAT growth (+8.9%) lagged operating growth due to 74.5% drop in other income and higher depreciation (+41.5%) and finance costs (+43.9%).
Key positives
- Revenue grew 27.9% YoY to ₹3,152 Cr, maintaining strong volume momentum.
- EBITDA margin expanded 46bps YoY to 11.23% on operating leverage (employee cost +5.7% of sales, down 20bps).
- PAT up 8.9% YoY to ₹183 Cr, with QoQ jump of 35.2% from Q4FY26.
- Standalone PAT surged 89.7% YoY to ₹70 Cr, showing improved domestic profitability.
- Interest coverage healthy at ~8.8x (EBITDA/finance cost).
Key concerns
- Gross margin contracted 131bps YoY to 32.35% due to higher raw material costs (COGS % up 132bps).
- Other income plunged 74.5% YoY to ₹9.5 Cr, masking operating strength.
- Finance costs rose 43.9% YoY to ₹40.3 Cr, pressuring bottom line.
- Depreciation increased 41.5% YoY, reflecting heavy capex; future capacity utilization key.
- Daawat Foods insurance claim litigation (₹13,411 Lakhs asset) and Ecopure CVD (75.48% duty under appeal) remain unresolved contingent risks.
- PAT growth lagged revenue growth significantly (8.9% vs 27.9%) due to non-operating headwinds.
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