Shares of rice exporters LT Foods and KRBL rallied up to 15% on Monday's trading session, significantly outperforming the broader market as investors focused on surging global commodity prices. According to latest reports, LT Foods hit a 52-week high of ₹482.85 with 13% intraday gains, while KRBL delivered 9% returns with the stock trading at ₹443.50. The broader rice stock rally saw Chaman Lal Setia Exports gaining 11.3% and GRM Overseas up 6.4%, as reported by multiple market sources. The rally was accompanied by extraordinary trading volumes, with LT Foods seeing over 32 million shares exchanged in the first half of trade - more than 86 times the average volume in the last 10 days. Latest data shows LT Foods witnessed volume of 362.61 lakh shares by 14:14 IST on NSE, representing a 91.72 times surge over the two-week average daily volume of 3.95 lakh shares.
Rice stocks rallied as investors focused on an abrupt 39.93% surge in mandi prices on August 24, with the average price hitting ₹5,019 per quintal and the high price reaching ₹6,200 per quintal. This sudden shift in physical market prices has put the spotlight back on the commodity, with traders considering whether reduced supply and increased procurement demand can help achieve higher realizations. The abrupt change in mandi prices has bolstered sentiments in the rice processing and export space, as firms such as LT Foods and KRBL could benefit from improved pricing dynamics. However, increased procurement costs may affect bottom lines negatively in the absence of increased selling prices, depending on how well companies manage their procurement processes.
India's rice export performance has been robust, with exports increasing by 16.48% to $1 billion in June 2026 compared to around $860 million in the same period last year, according to Ministry of Commerce and Industry data. As per the Indian Rice Exporters Federation report from August 22, India's Kharif rice sowing is lagging compared to last year's levels amid uneven monsoon conditions, with the overall crop area remaining 1.5% lower than last year's levels. The trade body highlighted that India's Kharif sowing is in the final stages, but the overall crop area remains affected by uneven monsoon conditions. With India being the largest exporter of rice to world nations, rice companies enjoy direct benefits from elevated prices in both domestic and global markets.
Indian rice exporters face significant logistical challenges at Kandla port, with cargo clearance now extending to forty days, impacting perishable rice shipments. This congestion occurs while India holds substantial rice stocks and anticipates global demand, with container shortages further exacerbating issues for basmati and non-basmati rice exports. These disruptions are causing global non-basmati rice prices to increase, adding to the positive sentiment for rice exporters despite operational challenges.
LT Foods delivered exceptional financial results for the quarter ended June 2026, with revenue rising 11.56% to ₹1,172.08 crore from ₹1,050.56 crore in the year-ago period, according to a regulatory filing. The company's net profit surged 89.67% to ₹70.16 crore from ₹36.99 crore, while total income increased 10.77% to ₹1,176.11 crore from ₹1,061.73 crore over the same period. The Gurugram-based FMCG company primarily trades rice and exports its products to 85 countries, including the US, UK and West Asia, producing its flagship Daawat rice brand. The stock came under buying interest after the company announced various initiatives at its AI day on Friday, with CEO R Srikrishna stating that the company expects revenue to double by 2029 from around $1.5 billion driven by AI-led transformation, West Asia expansion, growth in the technology vertical, and private equity partnerships. Geojit Investments recently gave a 'Buy' rating for the stock, valuing it at ₹514 with a target price based on 17x FY28 EPS, citing regional expansion in North America and Europe as key growth drivers.
KRBL delivered a resilient June 2026 quarter (Q1FY27) performance despite severe disruption in West Asia, which affected a significant portion of India's basmati export trade. According to Business Standard, KRBL delivered 10% domestic volume growth and maintained its guidance of meaningful export growth for FY27. India's basmati export volumes declined to 1.5 million tonnes from 1.7 million tonnes year-on-year amid the disruption, while basmati realizations increased 20% YoY and 13% quarter-on-quarter. The management expects export volume to recover progressively from Q2FY27 as shipping conditions in West Asia stabilise. KRBL expects a normal basmati crop this season, with sowing levels broadly in line with previous years, according to CFO Ashish Jain, with no supply worries but export challenges remaining. Religare Broking has assigned a 'Buy' rating with a target of ₹461 per share, valuing KRBL at an EV/EBITDA multiple of 9x and a FY27E EPS multiple of 14.7x, citing 10% domestic volume growth, premiumisation, and improving international competitiveness as key tailwinds.
