LT Foods Q2 FY27 results: net profit up 10.0% to ₹180.20 crore, revenue up 16.9%

How did LT Foods perform in Q2 FY27?

LT Foods reported consolidated revenue of ₹3,234 crore for Q2 FY27, up 16.9% from ₹2,766 crore in the year-ago quarter and up 2.6% from ₹3,152 crore in Q1 FY27. EBITDA rose 9.7% to ₹339.36 crore from ₹309.44 crore a year earlier, while the EBITDA margin fell 0.7 percentage points to 10.5% from 11.2%. On the other basis, standalone revenue was ₹1,211.35 crore, up 19.1%, with a standalone profit after tax of ₹64.02 crore against ₹71.25 crore in the year-ago period.

Profit before tax was ₹246.47 crore, up 8.0% from ₹228.29 crore a year earlier, and the tax expense was ₹67.06 crore against ₹65.27 crore. Net profit rose 10.0% to ₹180.20 crore from ₹163.85 crore, and basic EPS was ₹5.19 against ₹4.72. Against the previous quarter, EBITDA fell 4.1% to ₹339.36 crore from ₹353.87 crore, PBT fell 1.0% to ₹246.47 crore from ₹249 crore, and net profit fell 1.8% to ₹180.20 crore from ₹183.45 crore, with EPS at ₹5.19 versus ₹5.28.

What changed in LT Foods' costs and profit?

Total expenses rose 18.2% to ₹3,006 crore from ₹2,544 crore in Q2 FY26, faster than the 16.9% rise in revenue. Cost of materials was up 14.0% to ₹1,465 crore, employee cost was up 11.4% to ₹175.07 crore, finance costs were up 22.7% to ₹34.38 crore, depreciation was up 28.4% to ₹76.88 crore, and other expenses were up 10.6% to ₹524.88 crore. Other income was up 172.0% to ₹18.36 crore from ₹6.75 crore, and there was no exceptional item.

The company attributed the fall in gross margin to a change in shipment terms with related parties from CIF to C&I. The investor presentation said the EBITDA margin decline was due to remodelling of the organic segment and an increase in brand investments, and that depreciation rose on account of capitalisation of assets. It also said interest cost increased on account of supplier funding arrangements to optimise the working capital cycle. Tax expense rose 2.7% to ₹67.06 crore from ₹65.27 crore.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue rose 22.1% to ₹6,385.97 crore from ₹5,229.65 crore in H1 FY26, and total income rose 21.6% to ₹6,413.8 crore from ₹5,273.47 crore. Profit before tax rose 10.0% to ₹495.46 crore from ₹450.43 crore, and net profit rose 9.4% to ₹363.64 crore from ₹332.36 crore. EPS for the half year was ₹10.47 against ₹9.57.

The investor presentation reported H1 revenue of ₹6,414 crore, up 22%, or 18% on a normalised basis including Golden Star, with EBITDA of ₹721 crore, up 17%, and PAT of ₹364 crore, up 9%. It said H1 ROCE was 22.4% against 22.0% in H1 FY26, and working capital days improved to 143 from 174. The presentation also showed a net cash position of ₹247 crore and interest coverage of 13.8x.

What do the balance sheet and cash flow show?

Total assets rose to ₹9,263.32 crore as on 30 September 2026 from ₹9,064.44 crore as on 31 March 2026, and total equity rose to ₹4,904.3 crore from ₹4,520.44 crore. Borrowings were higher at ₹1,088.76 crore against ₹973.25 crore, while cash rose to ₹1,315.21 crore from ₹232.95 crore. Inventories fell to ₹3,748.41 crore from ₹4,990.6 crore, trade receivables rose to ₹923.32 crore from ₹860.23 crore, and trade payables fell to ₹998.13 crore from ₹2,030.29 crore.

For H1 FY27, operating cash flow was ₹1,371.17 crore against ₹684.54 crore in H1 FY26, and investing cash flow was an outflow of ₹258.92 crore against an outflow of ₹610.67 crore. Financing cash flow was an outflow of ₹48.02 crore against an inflow of ₹304.35 crore, while capital expenditure rose to ₹332.34 crore from ₹210.34 crore.

How has LT Foods done over the last 8 quarters?

Revenue has risen for eight consecutive quarters on a year-on-year basis, reaching ₹3,234.14 crore in Q2 FY27 from ₹2,274.81 crore in Q3 FY25. The recent peak was Q1 FY27 at ₹3,151.83 crore, and revenue has moved up in each of the last two quarters. Net profit rose year on year in each of the last two quarters, reaching ₹180.2 crore in Q2 FY27, though it was below the Q1 FY27 level of ₹183.45 crore.

The EBITDA margin was 11.2% in Q2 FY26 and Q1 FY27 before falling to 10.5% in Q2 FY27, against a recent low of 9.3% in Q4 FY26. Net profit bottomed at ₹135.67 crore in Q4 FY26 and then rose to ₹183.45 crore in Q1 FY27 before easing to ₹180.2 crore in the September 2026 quarter.

What else did the company announce?

LT Foods filed with the BSE on 27 October 2026 under Regulation 30 of the Listing Regulations, enclosing a revised investor presentation for the quarter and half year ended 30 September 2026. The same-day board outcome filing said the board, which met from 12:30 P.M. to 03:40 P.M. IST, approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, along with the limited review report of the statutory auditors. The board filing also carried the auditor's review report for the consolidated results.

The auditor drew attention to litigation at subsidiary Daawat Foods over the recoverability of an insurance claim asset of Rs. 13,410.53 lakhs as at 30 September 2026. It said the insurer repudiated the claim, the District Court at Raisen, Bhopal passed a decree in favour of Daawat Foods on 22 December 2023, and the insurer's appeal before the High Court of Madhya Pradesh was admitted on 31 May 2024 with the hearing pending. The auditor said its conclusion was not modified in respect of this matter.

What did LT Foods' management say?

Management said the branded India portfolio grew by nearly 8% against category growth of approximately 1.3%, supporting a 140 basis point increase in market share on a year-to-date basis, and that household reach rose from 56.2 lakhs to 67.5 lakhs. Management said working capital days improved to 143 from 174 and that the balance sheet was at a net cash position of ₹247 crore. It also said paddy inventory was 82,000 tons at INR43/kg and rice inventory was 260,000 tons at INR60/kg.

Management expects consolidated EBITDA margin to move from 11% toward almost 13%-13.5% as investment businesses scale, and referenced up to 14%, but gave no timeline. The organic business is targeting a 10%-11% EBITDA margin within the coming two years. Management said H2 FY27 should be similar to H1 and that it would maintain growth momentum, without giving revenue or PAT guidance, and that the U.K. business is expected to become profitable next year.

Management does not expect a material margin impact from possible war escalation in the coming quarters. On the call, the Chief Financial Officer said: "We don't recognize any gain or loss, yes, if the loss is there, it is on the basis of cost or market price, whichever is lower." The Managing Director and Chief Executive Officer said: "As a policy, we are not giving any timelines." The Chief Corporate Development Officer said: "Overall, Europe remains an investment and scale-building phase, but the business today is on a stronger footing than it was few quarters ago." Management also said FY27 advertising investment is planned at 2.3% of revenue against 2.1% in the prior year, with Q2 spend at almost 2.5%-2.6%.

Management identified risks from Middle East supply disruptions and freight escalation, raw-material and freight pressure in Europe, Nature Bio Foods' transition to direct retail relationships, and crop-26 paddy prices that are 22%-25% higher, which require successful price pass-through. It also said brand and ready-to-heat investments are diluting margins before capacity ramps.

How did LT Foods shares react?

The result was announced after market hours on 27 October 2026. From the price when the filing appeared, the stock fell 2.7% within five minutes, 3.7% within 15 minutes and 3.2% within 30 minutes. On the reaction day, the stock closed 2.1% lower than the previous close of ₹391.05, and by the next day's close it was down 2.7% from that pre-results close.

The Other Agricultural Products industry median moved 0.0% on the reaction day and 0.3% by the next day's close, so LT Foods underperformed the sector by 2.1 percentage points on the reaction day and by 2.9 percentage points by the next day's close. Earlier results-day moves were mixed: 4.9% on 30 July 2026, 2.7% on 21 January 2026, 0.2% on 30 October 2025, 1.7% on 15 May 2025, and negative moves on 14 May 2026, 24 July 2025, 27 January 2025 and 24 October 2024.

How did other Other Agricultural Products companies do?

Sixteen Other Agricultural Products companies were compared for the quarter, and their median revenue growth was 12.9%, against LT Foods' 16.9% consolidated revenue growth. Of the other companies, 10 grew more slowly than LT Foods and 6 grew faster. Among the 15 peers for which profit was compared, 8 reported higher profit.