Company Update : LT Foods by Motilal Oswal Financial Services Ltd
Operating performance beats estimates
* LT Foods reported revenue of INR27.7b ( +31% YoY, +12% QoQ) (est. INR36b).
* Consolidated EBITDA was INR 3.1b (+35% YoY, +17% QoQ) (Est. INR2.9b).
* Consolidated EBITDA margin stood at 11.2% (+30bp YoY, +40bp QoQ) (est 11%), led by a gross margin expansion of 80bp YoY, offset by a 60bp YoY increase in other expenses.
* Adjusted PAT stood at INR1.6b (+10% YoY, -3% QoQ) (in line).
* In 1HFY26, Revenue/EBITDA/Adj. PAT grew 25%/22%/10% YoY to INR52.3b/INR5.7b/INR3.3b.
Segmental performance in 2QFY26
* The Basmati & Other Specialty Rice segment’s revenue grew 36% YoY to INR23.6b (including the Golden Star acquisition), and EBITDA stood at INR3.1b (up 47%). Gross/EBITDA margin stood at 34%/13%, rising 300bp/100bp YoY, while volumes grew 32% YoY.
* The Organic Foods segment’s revenue grew 21% YoY to INR2.9b, and EBITDA stood at INR114m. Gross/EBITDA margins contracted 1100bp/800bp YoY to 33%/3.9% due to the higher initial cost of commissioning a new plant in Europe.
* The Convenience & Health segment’s revenue grew 9% YoY to INR480m. Gross margin contracted 1,100bp to 31%, and operating loss stood at INR72m.
* Region-wise, India/North America/EU grew 13%/47%/31%, while the Middle East declined 18% for 1HFY26.
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