L T Foods Ltd (LTFOODS) Q1 FY27 Results Analysis: Revenue Surges 27.9%, EBITDA Margin Expands 196 bps

L T Foods Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 3,151.83 Cr (+27.92% YoY) and PAT growth of +8.87% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue grew 27.9% YoY driven by US tariff reduction and INR depreciation, but PAT growth lagged at 8.9% due to higher finance costs and depreciation. EBITDA margin expanded 196 bps QoQ to 11.23%, on track for ~12% FY27 guidance. Key watch items include finance cost trajectory and margin dilution from Golden Star consolidation.

Key Investment Insights

Key Positives

• Revenue grew 27.9% YoY to Rs.3,151.83 Cr, the strongest Q1 print.
• EBITDA grew 33.3% YoY to Rs.353.88 Cr, with margin expanding 196 bps QoQ to 11.23%.
• US tariff reduction from 50% to 18% removed zero-margin pass-through drag, benefiting margins.
• Cost of materials ratio improved 887 bps YoY to 51.97%.
• Standalone EBITDA grew 110% YoY to Rs.115.68 Cr.

Risk Factors

• PAT grew only 8.9% YoY despite 27.9% revenue growth, constrained by 43.9% rise in finance costs, 41.5% higher depreciation, and 74.5% decline in other income.
• Subsidiary PAT contribution declined 13.9% YoY to Rs.113.29 Cr despite revenue contribution rising 40.1%, indicating margin dilution from Golden Star consolidation.
• Finance costs rose 43.9% YoY to Rs.40.28 Cr, reflecting higher debt from acquisitions and capex.