1. At a Glance
LT Foods is cooking with basmati and cash. Q1 FY26 revenue: ₹2,501 Cr (+20%), PAT: ₹168 Cr (+10%). They sell rice, own the Daawat and Royal brands, and are now exporting more organic dreams than your yoga instructor. A consumer FMCG+Agri play with export swag, strong margins—and a valuation that’s getting aromatic.
2. Introduction with Hook
If Daawat was a Netflix series, it’d be Breaking Grain — one minute you’re packaging rice, next you’re a ₹17,000 Cr FMCG phenom ruling both Haryana mandis and Whole Foods in New Jersey.
- 30% market share in India (Daawat)
- 50% in North America (Royal)
- EPS: ₹17.87
- ROCE: 19.2%
Basically, this isn’t your dad’s rice company. It’s a global grain mafia.
3. Business Model – WTF Do They Even Do?
“They take rice. Polish it. Rebrand it. Export it. Profit.”
- Core Business:
- Branded and non-branded basmati rice
- Ready-to-cook flavored rice
- Organic food ingredients (Nature Bio Foods)
- Key Brands:
- Daawat (India), Royal (USA) — both category leaders
- Also owns 817 Elephant, Golden Star, Kari Kari, Ecolife, Leev
- Geographic Spread:
- India, USA, Europe, Middle East
- Side Hustles:
- Organic rice, quinoa, millets, ancient grains
- R&D for rice-based snacks and health trends
“Basically, they sell 10 types of rice to 10 countries and call it a diversified portfolio.”
4. Financials Overview – Cash-cooked and Well-steamed
Q1 FY26:
| Metric | Value | YoY Growth |
|---|---|---|
| Revenue | ₹2,501 Cr | +20% |
| EBITDA | ₹302 Cr | +17% |
| PAT | ₹168 Cr | +10% |
| EPS | ₹4.85 | — |
| OPM | 12% | Stable |
TTM (Last 12 Months):
| Metric | Value |
|---|---|
| Revenue | ₹9,075 Cr |
| EBITDA | ₹1,003 Cr |
| PAT | ₹625 Cr |
| ROE | 16.8% |
| ROCE | 19.2% |
“Margins like a well-cooked biryani — flavorful but balanced.”
5. Valuation – Should You Pay 27x for Rice?
“If you think 27x P/E for basmati is justified, you probably also buy water bottles at ₹50.”
| Metric | Value |
|---|---|
| P/E | 27.5x |
| P/B | 4.42x |
| EPS (TTM) | ₹17.87 |
| Book Value | ₹111 |
Fair Value Estimate:
| Method | Range |
|---|---|
| P/E @ 20x | ₹350 – ₹380 |
| EV/EBITDA @ 15x | ₹390 – ₹430 |
FV Range: ₹350–₹430
Current Price: ₹491
Verdict: Slightly premium. Tasty but spicy for new investors.
6. What’s Cooking – News, Triggers, Masala
“More acquisitions than a rich NRI at a real estate expo.”
- Q1 FY26 Earnings:
- Revenue +20%, PAT +10%
- EBITDA margins stable at 12%
- Dividend Declared: ₹1/share (AGM in Sept)
- Acquisitions & JV Buzz:
- Stake in Netherlands-based Leev
- 51% in Golden Star Trading (US)
- Global Playbook:
- Focus on expanding in US, EU, Middle East
- Organic and health-focused rice gaining traction
7. Balance Sheet – Rice Bags of Gold
| Item | FY25 (₹ Cr) |
|---|---|
| Equity Capital | 35 |
| Reserves | 3,819 |
| Borrowings | 1,261 |
| Other Liabilities | 2,308 |
| Total Assets | 7,423 |
“Leverage is present but under control. They aren’t drowning in dal.”
Net D/E ~0.3
Capex rising, but funded wisely. No financial aloo bombs hidden.
8. Cash Flow – Sabudana Saga
| Year | Ops CF | Invest CF | Finance CF | Net CF |
|---|---|---|---|---|
| FY23 | ₹258 Cr | ₹-395 Cr | ₹136 Cr | ₹0 |
| FY24 | ₹757 Cr | ₹-201 Cr | ₹-538 Cr | ₹17 Cr |
| FY25 | ₹462 Cr | ₹-250 Cr | ₹-150 Cr | ₹62 Cr |
“Operating cash solid, but investing like they’re Gordon Ramsay of rice.”
9. Ratios – Sexy or Stressy?
| Ratio | Value | Verdict |
|---|---|---|
| ROCE | 19.2% | Sexy |
| ROE | 16.8% | Consistent performer |
| P/E | 27.5x | A bit spicy |
| OPM | 11–12% | Stable & commendable |
| Debt/Equity | ~0.3 | Digestible |
“Ratios cooked just right — not overboiled, not undercooked.”
10. P&L Breakdown – Pure Profit Platter
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹6,936 Cr | ₹701 Cr | ₹423 Cr |
| FY24 | ₹7,772 Cr | ₹938 Cr | ₹598 Cr |
| FY25 TTM | ₹9,075 Cr | ₹1,003 Cr | ₹625 Cr |
“Growth like your mom’s biryani recipe — gets better every year.”
11. Peer Comparison – Who’s the Rice Boss?
| Company | Rev (Cr) | PAT (Cr) | P/E | ROCE |
|---|---|---|---|---|
| LT Foods | 9,075 | 625 | 27.5 | 19.2% |
| KRBL | 5,594 | 476 | 19.5 | 11.9% |
| GRM Overseas | 1,348 | 61 | 37.0 | 13.5% |
| Chamanlal Setia | 1,495 | 103 | 16.8 | 16.8% |
“LT Foods is the biryani buffet. Others? Tasty, but à la carte.”
12. Miscellaneous – Shareholding, Brands, Drama
- Promoters: 51% (down from 56% in FY22)
- FIIs: 10.2% — rising steadily
- DIIs: 7.2% — smart money onboard
- Public: 31.6% — desi and NRI fanbase
- Brands: Daawat, Royal, Leev, Kari Kari — multipronged FMCG strategy
- M&A: Actively scouting, expanding Europe presence
“Promoter dilution? Mild. Institutional love? Stronger than your masala chai.”
13. EduInvesting Verdict™
LT Foods is no longer just a rice company — it’s a full-blown FMCG-export hybrid with global seasoning. While margins are stable and growth is steady, valuations have started to reflect the success.
This isn’t a moonshot. It’s a well-cooked portfolio pick that won’t burn your tongue but may just spice up your returns.
A decent pantry stock for any long-term investor’s shelf.
Written by EduInvesting Team | July 24, 2025
Tags: LT Foods, Daawat, Basmati, Q1 FY26, FMCG, EduInvesting Premium
