L T Foods Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 3,234.14 Cr (+16.94% YoY) and PAT growth of +9.98% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 27, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 3,234.14 Cr (+16.94% YoY) |
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| PAT (Q2) | Rs. 180.20 Cr (+9.98% YoY) |
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| EBITDA margin | 11.00% (-41 bps YoY) |
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| EPS (Q2) | Rs. 5.19 (+9.96% YoY) |
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| Market cap | Rs. 13,625.21 Cr |
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| CMP | Rs. 391.55 |
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Quarter Snapshot
LT Foods delivered 16.94% revenue growth and 13.13% EBITDA growth with a large working-capital release that swung the balance sheet to net cash ex-lease, but margins drifted below management's own FY27 guide (EBITDA 11.00% vs ~12%; gross margin 32.52% vs 33-33.5%). H2 requires a 12.76% EBITDA margin to hit the full-year target, making the margin path the key watch item, while cash conversion (CFO/PAT 3.77x) and deleveraging are clear positives.
Key Investment Insights
Key Positives
- Revenue grew 16.94% YoY to Rs.3,234.14 Cr
- EBITDA grew 13.13% YoY to Rs.357.72 Cr; PAT grew 9.98% YoY to Rs.180.20 Cr
- H1 CFO of Rs.1,371.17 Cr was 3.77x PAT, up from 2.08x in H1 FY26
- Inventories drew down Rs.1,242.18 Cr to Rs.3,748.41 Cr; company entered the new-crop window net-cash ex-lease
- Net debt improved from Rs.636.19 Cr to net cash of Rs.227.75 Cr ex-lease (0.36x TTM EBITDA including leases)
- H1 free cash flow of Rs.1,038.83 Cr after capex of Rs.332.34 Cr
- Opex (employee + other) rose only 10.83% YoY to 21.52% of total income vs 22.78% a year ago
- Effective tax rate fell to 27.12% from 28.49%
Risk Factors
- EBITDA margin of 11.00% is 41 bps below Q2 FY26 and 76 bps short of the ~12% FY27 guidance; H2 needs a 12.76% margin to reach the full-year target
- Gross margin compressed 167 bps YoY to 32.52%, below the 33-33.5% guidance
- Finance costs rose 22.69% YoY and D&A rose 28.39% YoY, holding PBT growth to 7.96% vs 16.94% revenue growth
- Standalone PAT declined 10.15% YoY to Rs.64.02 Cr with standalone EBITDA margin at 8.33% vs 9.54%
- Eleven unreviewed subsidiaries booked Q2 revenue of Rs.369.59 Cr and a net loss of Rs.8.15 Cr (H1 loss Rs.27.60 Cr)
- Ecopure faces a preliminary 26.60% dumping margin (Rs.14.22 Cr on Rs.53.49 Cr of organic soybean-meal sales) and 3.57% CVD rate, appeal pending