LT Foods reported mixed results for the third quarter ended December 2025, with consolidated profit after tax rising 8% to ₹157 crore despite significant margin pressure. The company's EBITDA margins slipped 20 basis points year-on-year to 11.3%, while PAT margins declined sharply by 80 basis points to 5.6%, reflecting rising input costs and pricing pressures. Revenue for the quarter grew 23% to ₹2,812 crore, though this growth rate trailed the company's overall nine-month performance.
For the nine-month period ending December 2025, LT Foods delivered robust financial performance with revenue growing 24% to ₹8,085 crore compared to the prior year. The company's profit after tax increased 9% to ₹490 crore, though PAT margins narrowed to 6.1% from 6.9% in the previous year. EBITDA for the nine-month period rose 20% to ₹936 crore, with margins improving to 11.6% from the previous year's levels. The company's gross profit surged 26% to ₹2,778 crore, with gross profit margins reaching 34.4% for the period.
The company's basmati and specialty rice business continued its strong momentum, reporting 26% year-on-year growth for the nine-month period. However, normalized growth stood at 12% after adjusting for US tariff impacts and other business adjustments. The organic foods and ingredients segment delivered robust growth of 15% year-on-year, reflecting increasing global preference for sustainable, clean-label food choices. The company's household penetration for flagship brand DAAWAT® rose to 58.11 lakh households as of September 2025, reaffirming its position as the most trusted rice brand in India. The company also expanded its ready-to-heat and ready-to-cook portfolio, with revenues from this segment reaching ₹138 crore during the nine-month period.
In the United States, the Royal brand reported 50% growth, though the company pointed out that underlying growth was lower when adjusted for tariff-related factors. European operations grew 35% year-on-year, demonstrating the company's ability to expand across international markets despite tariff pressures. The company operates across 80 countries with annual revenues of approximately ₹8,773 crore as of FY25. The company specifically cited 'US tariff-related developments' as a source of near-term stress, with reports suggesting a 25% to 26% US tariff on Indian rice, effective around mid-2025, could affect exports.
Managing Director Ashwani Arora acknowledged near-term pressure from US-imposed tariffs, noting increased input costs with uncertain future impact. Despite the margin compression, LT Foods continued to deliver strong top-line momentum across geographies and segments. The company's balance sheet continued to improve, with net debt-to-EBITDA declining to 0.95. The shares of LT Foods Limited were trading on the NSE at ₹354 down by ₹3.90 or 1.09% at 12.45 pm. The company operates with a market capitalization hovering around ₹12,350 crore and a Price-to-Earnings ratio of approximately 19.5x, standing in contrast to competitors KRBL at 13x P/E and Adani Wilmar at 25x P/E.
