LT Foods Navigates Q3 FY26 with Strong Growth Amidst Geopolitical Headwinds

LT Foods Limited, a prominent player in the global FMCG sector, has reported a robust financial performance for the third quarter and nine months ended December 31, 2025 (Q3 & 9M FY26). The company achieved a record 9-month consolidated revenue of INR8,085 crore, marking a significant 24% year-on-year growth. This impressive top-line expansion was complemented by a 20% increase in EBITDA, reaching INR936 crore for the same period. For Q3 FY26 alone, LT Foods recorded its highest-ever quarterly revenue of INR2,812 crore, a 23% year-on-year growth, with EBITDA at INR317 crore, also up 20% from Q3 FY25. This performance underscores the company's strong brand equity, disciplined investments, and expanding market reach.

The Basmati & Other Specialty Rice segment continues to be the primary growth engine, contributing 88% of the consolidated revenues and delivering a strong 26% year-on-year growth in 9 months. This growth is supported by deeply entrenched brand presence across geographies and sustained marketing efforts. The Organic Food and Ingredients segment also showed healthy growth, with a 15% year-on-year increase in 9M FY26, reflecting rising global demand for sustainable food products. However, the Ready-to-Heat (RTH) & Ready-to-Cook (RTC) segment experienced a 4% year-on-year degrowth in 9M FY26, primarily due to the discontinuation of the 'Daawat Sehat' product and other non-strategic private label businesses. Despite this, the company is investing in new RTH capacity in the USA, which is expected to contribute an additional $20 million in revenue.

Strategic Initiatives and Market Dynamics

LT Foods is actively pursuing several strategic initiatives to sustain its growth trajectory and enhance operational efficiencies. A key focus is on digital transformation, aimed at building a 'Smart & Intelligent Enterprise'. This initiative has already yielded significant results, including almost a 2X revenue growth and a reduction in finished goods inventory from 40-45 days to 20 days. The company is also expanding its product portfolio and entering new geographies, while simultaneously strengthening brand equity and consumer acquisition, particularly in India where its household reach for Daawat has grown significantly. The company's 'Royal' brand holds a dominant 60%+ Basmati rice import share in North America, and 'Golden Star' is the leading Jasmine rice brand in the region.

However, the company is navigating a complex global landscape. A significant development was the rejection of the proposed acquisition of Hungary-based Global Green Group by the Ministry of National Economy, Hungary, citing national economic and sectoral risks. This transaction has now been withdrawn. Additionally, the company faces a 50% Countervailing Duty (CVD) on its US subsidiary, Ecopure Specialities Limited, with the final determination timeline extended due to a US government shutdown. This duty, along with rising basmati paddy prices (an average 7-8% increase due to lower crop yields), is impacting consumption in the mainstream market, though the company has largely passed on these costs to consumers.

Outlook and Sustainability Focus

Looking ahead, LT Foods remains confident in achieving double-digit revenue growth. The company aims to improve its Return on Capital Employed (ROCE) to 23% from the current 20% range. A strong emphasis is also placed on Environmental, Social, and Governance (ESG) initiatives. The company has achieved industry-first SRP-Verified Low-Carbon Rice and is committed to embedding ESG principles across its operations. By 2030, LT Group aims to create over 100 ponds to support water recharge and enhance sustainability efforts, showcasing its dedication to responsible business practices.

Despite the challenges posed by geopolitical factors and input cost inflation, LT Foods' Q3 FY26 performance demonstrates its operational strength and strategic clarity. The company's focus on brand building, digital transformation, and sustainability positions it well for continued growth and value creation for its stakeholders.