LT Foods, the company behind Daawat basmati rice and Royal in the US, heads into its Q2 FY 2026-2027 print with domestic rice prices up over 10% and the US tariff reset at 10% shaping the margin debate. The print will speak to whether gross margin can bridge toward the guided 33-33.5% for FY27 and how fast the organic segment recovers from a 4% EBITDA margin toward the 7-8% end-FY27 target.
| Results date | October 27, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 3,161 Cr (+26% YoY, +8% QoQ) |
| Previous quarter PAT | Rs. 183 Cr (+9% YoY) |
| Previous quarter EBITDA margin | 11.5% |
| Market cap | Rs. 13,362.47 Cr |
| CMP | Rs. 385.0 |
The board meets on October 27, 2026 to approve unaudited standalone and consolidated results for the quarter and half-year ended September 30, 2026, along with the auditors' limited review report.
A Q2 FY27 earnings call is scheduled for Wednesday, October 28, 2026 at 4:00 PM IST, organized with Motilal Oswal Financial Services. Speakers include MD & CEO Ashwani Kumar Arora, CFO Sachin Gupta and Chief Corporate Development Officer Monika Chawla Jaggia.
The quarter will be judged on whether LT Foods can bridge from Q1 FY27's 11.5% EBITDA margin and 32.6% gross margin toward its FY27 guidance of ~12% EBITDA margin and 33-33.5% gross margin, with management having said it is "on track for its full-year financial estimates." Domestic rice prices rose over 10% in the weeks to August 7 with basmati specifically called out as up, and the paddy MSP for 2026-27 was raised to Rs. 2,441/quintal from Rs. 2,369, making the gross-margin step-up harder within Q2 itself since kharif arrivals only begin after October. The offset is the company's own buffer of 346,000 tonnes of rice and 164,000 tonnes of paddy in stock with inventory days at 187 versus 221 a year earlier, which absorbs part of the input inflation. The US tariff was reset at the same effective 10% rate after the temporary duty expired July 24, preserving the pass-through mechanics that underpinned North America's +49% reported growth (27% normalized) in Q1, while the rupee's slide to Rs. 96.61 (Oct 9) from Rs. 95.72 (Sep 11) on the RBI FBIL series is a tailwind to realizations with 71% international revenue. The organic segment margin bridge from 4% toward 7-8% by end-FY27 remains the single biggest swing factor in whether the ~12% full-year guide is reaffirmed, softened or re-timed, and the call will also cover the US RTH plant ramp, Kameda and Leev.nu consolidation, and the Ecopure CVD appeal.
Guidance scorecard: FY27 margin path: Q1 FY27 printed below the full-year targets; H1 FY27 needs to bridge.
US RTH facility ramp and RTH/RTC targets
Acquisition consolidation and capex
Tariff mechanics and CVD appeal
India market share and Middle East momentum
Q1 FY27 EBITDA margin was 11.5% versus 12.1% a year ago, with compression driven by restructuring in the organic foods segment. Management has guided to approximately 12% EBITDA margin for FY27, and the organic segment's recovery from 4% toward 7-8% by end-FY27 is the biggest swing factor.
US duties on Indian exports peaked at 50% and have since been reset at 10%, with the company passing on the entire tariff to the end consumer. Management has noted that pass-through depends on the competitive landscape, and Golden Star's Thailand imports carry a ~19% tariff that has also been passed on.
The organic segment's Q1 FY27 EBITDA margin was 4%, down from 10%, as the business is remodeled from wholesale to a CPG model with European capacity expansion. Management has stated there is no structural decline in organic revenues and guided full recovery with double-digit growth and margins by FY28.
At the Q1 FY27 call, the US RTH facility was expected to become operational "this quarter", after a prior delay. The new capacity of 15 million pouches was originally slated for FY27, and capacity constraints are guided to be resolved by Q2 FY27.
Revenue rose to Rs. 3,161 Cr in Q1 FY27, up 26% YoY and 8% QoQ, with North America up 49% reported (27% normalized) and India up 19-23%. Basmati & specialty rice grew 34% YoY on an 11% volume increase, with Biryani Kits up 42% YoY.