LT Foods Q1 FY27: Revenue Jumps 26% as Daawat Maker Bets on India, US Leadership and Ready-to-Eat Growth

BY ADMIN • FILED 05 Aug 2026, 3:24 PM

LT Foods Ltd, the maker of the iconic Daawat and Royal basmati rice brands, delivered a strong start to FY27 with robust revenue growth despite geopolitical uncertainties, freight disruptions, and supply chain challenges. During its Q1 FY27 earnings call, the company highlighted strong performance across key markets, continued market share gains in India, leadership in the US basmati market, and an ambitious roadmap to double its India business by FY30.

Here’s a detailed breakdown of the management commentary and key takeaways from the conference call.

Q1 FY27 Financial Highlights

LT Foods reported another quarter of healthy growth driven by strong branded demand across domestic and international markets.

Key Financial Performance

Revenue: ₹3,161 crore, up 26.4% YoY
Normalized Revenue Growth: 19%
Gross Profit: ₹1,029 crore, up 19%
EBITDA: ₹363 crore, up 20%
PAT: ₹183 crore, up 9%
EPS: ₹5.3 per share

On a sequential basis:

Revenue increased 8%
EBITDA grew 21%
PAT jumped 35%

Management stated that performance remains fully in line with FY27 guidance.

India Continues to Be LT Foods’ Biggest Growth Opportunity

Management described India as “the engine that is just getting started.”

According to LT Foods:

Profit has grown at over 30% CAGR during the last three years.
Revenue has grown at approximately 12% CAGR.
Large parts of India’s basmati market remain unbranded, creating long-term growth opportunities.

The company aims to more than double India revenue by FY30 through:

Expanding branded basmati penetration
Serving every price point
Strengthening Daawat brand
Increasing retail distribution
Digital transformation
Expanding into adjacent food categories

Daawat Continues to Gain Market Share

India business remained one of the strongest contributors.

Highlights include:

India revenue grew 23% YoY
Market share increased to 23.1%
Household penetration reached 64.4 lakh households
Leadership maintained across e-commerce and quick commerce platforms

Management emphasized that growth is largely coming from converting consumers from loose, unbranded basmati to trusted packaged brands.

US Business Remains the Global Growth Driver

LT Foods continues to dominate the US basmati market.

Management revealed:

LT Foods now commands over 60% share of US basmati imports
Royal and Golden Star continue to lead their respective segments
North America revenue grew 49% YoY
Normalized North America growth stood at 27%

Although tariff changes caused pricing volatility, management believes volume growth will strengthen as pricing normalizes.

Europe and UK Still in Investment Phase

Rather than maximizing near-term profits, LT Foods is investing aggressively in Europe.

Current focus areas include:

Capacity expansion
Cost optimization
Better distribution mix
Improving profitability over the medium term

Management remains optimistic about long-term opportunities despite temporary pressure on margins.

Middle East Business Showing Encouraging Signs

Management admitted that the Middle East remains one of the toughest rice markets globally due to intense competition.

However:

Demand remained resilient
LT Foods became the No.1 e-commerce basmati brand in the region
Multi-price-point strategy is helping expand market presence

Freight costs remain a major challenge.

Management disclosed that freight rates increased from approximately $200 to nearly $4,000, significantly impacting profitability in the region.

Organic Business Undergoing Strategic Transformation

The organic foods division remained under pressure during Q1.

Revenue stood at:

₹254 crore
EBITDA Margin: 4%

The decline was primarily due to restructuring.

LT Foods has shifted from:

Selling through wholesalers

Direct consumer packaged goods (CPG) distribution in Europe.

Management expects:

EBITDA margin to improve to 7-8% by FY27-end
Return to double-digit margins over the next 18 months

Ready-to-Heat Business Emerging as Major Growth Engine

One of the biggest long-term opportunities remains Ready-to-Heat (RTH) and Ready-to-Cook (RTC) products.

Highlights include:

Revenue grew 13% YoY
Biryani Kits recorded 42% growth
US Ready-to-Heat manufacturing facility expected to commence operations during the current quarter

Management aims to:

Double Ready-to-Heat revenue over the next three years.

Breakeven is expected once revenue reaches approximately ₹400 crore.

Basmati Business Continues to Deliver Strong Growth

The core basmati and specialty rice segment remained the largest contributor.

Performance:

Revenue: ₹2,845 crore
Revenue Growth: 34% YoY
Volume Growth: 11%
EBITDA Margin: Stable at approximately 13%

Management noted that strong branded demand helped offset geopolitical disruptions.

Balance Sheet Becomes Even Stronger

LT Foods continued improving operational efficiency.

Working capital metrics improved significantly.

Key Improvements

Inventory Days:
- Reduced from 221 days to 187 days
Receivable Days:
- Improved from 30 days to 26 days
Working Capital:
- Reduced from 195 days to 170 days

Financial leverage remained comfortable.

ROCE: 21.1%
Net Debt / EBITDA: 0.48x
Net Debt / Equity: 0.15x

Management believes the balance sheet provides sufficient flexibility for future expansion.

El Niño Impact Being Closely Monitored

Investors questioned management regarding potential crop risks from El Niño.

Management explained:

Around 80-85% of basmati cultivation relies on canal or groundwater irrigation rather than rainfall.
Current assessment suggests limited risk.
A clearer picture of crop production should emerge by the end of August.

If crop inflation occurs, LT Foods expects to pass higher costs to consumers, as it has successfully done in previous cycles.

Australia Expansion Still in Early Stage

Management clarified that:

The Australian entity has only recently been incorporated.
No major capital expenditure has been planned yet.
Future investments will depend on market opportunities.

Jasmine Rice Offers Additional Growth Opportunity

Following the acquisition of Golden Star, LT Foods now has exposure to the Jasmine rice category.

Management noted:

Jasmine rice market in North America is roughly three times larger than basmati.
Both categories are growing between 5% and 10% annually.
Jasmine delivers stronger return on capital due to shorter working capital cycles, while basmati enjoys higher EBITDA margins.

Management Outlook

LT Foods remains confident of achieving its FY27 guidance.

Its long-term strategy focuses on:

Expanding branded basmati leadership globally
Scaling Ready-to-Heat and Ready-to-Cook products
Improving profitability in the organic foods segment
Growing deeper in India through distribution expansion
Building a stronger presence in the Middle East
Investing in Europe for future profitability

Management reiterated that FY27 has started on a strong note and expects continued growth across all major business segments.