Global FMCG company LT Foods Ltd delivered robust financial results for the second quarter, with net profit increasing 10% year-on-year to ₹180 crore compared with ₹164 crore in the corresponding quarter last year. According to reports from Business Standard, the company's revenue grew 17% YoY to ₹3,253 crore from ₹2,772 crore in the year-ago period, demonstrating strong double-digit revenue expansion that propelled net profit upward despite operational challenges. The results were announced on Tuesday, October 27, 2026, showing the company's continued ability to maintain growth momentum in the competitive FMCG sector.
The company's Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 13% YoY to ₹358 crore, compared with ₹316 crore a year ago, as reported by Business Standard. However, EBITDA margin declined to 11% from 11.4% in the year-ago quarter, indicating that while absolute EBITDA grew, the margin compression reflects rising input pressures affecting profitability. Similarly, net profit margin fell to 5.5% from 5.9% in the corresponding period last year, highlighting the impact of cost inflation on operational efficiency and the company's ability to maintain pricing power in the current market environment.
The company's gross profit increased 12% YoY to ₹1,058 crore, compared with ₹948 crore in the corresponding period last fiscal, as reported by Business Standard. However, gross profit margin declined to 32.5% from 34.2% in the year-ago quarter, indicating that while absolute gross profit grew, the margin compression reflects rising input pressures affecting the company's cost structure. The margin compression across both EBITDA and gross profit metrics occurred despite strong revenue growth, highlighting the challenging operating environment for FMCG companies.
According to The Hindu BusinessLine, LT Foods' North America operations, which account for 50% of H1 revenue, delivered exceptional performance with 21% year-on-year growth. The Royal brand commands over 60% of Basmati rice imports in the United States, demonstrating strong market positioning. The company has been expanding into premium and convenience formats, with Golden Star entering the ready-to-heat segment with microwaveable rice cups and Daawat Rozana Platinum launched in India. The company's Daawat Delight campaign, fronted by celebrity chef Ranveer Brar, generated over 590 million impressions, indicating successful brand investments gaining visibility.
As reported by The Hindu BusinessLine, shares of LT Foods Limited were trading lower on Wednesday, falling 6.27% to ₹367.30 by mid-morning, against a previous close of ₹391.55. The stock opened at ₹382.10, hit an intraday low of ₹362.95, and had seen a traded volume of 6.48 lakh shares worth ₹23.92 crore by 11.41 am. The stock is now down about 25% from its 52-week high of ₹490.70 touched in August, though it remains well above the 52-week low of ₹333.15 from January. The company's total market capitalisation stood at ₹12,754.60 crore with a P/E ratio of 20.71. Looking ahead, LT Foods has outlined four growth priorities: margin expansion through economies of scale and premiumisation; scaling core operations while widening distribution and exploring inorganic opportunities; embedding ESG practices; and capability building through digital transformation.
