L T Foods Ltd Q2 FY26 – From Daawat to Dominance: ₹2,766 Cr Quarter, 11% Margins, 70 Years of Basmati Bragging Rights
1. At a Glance – The Rice Empire’s Hot Serve
If you thought rice companies were boring, meet LT Foods Ltd — a ₹14,486 crore market-cap FMCG ninja that sells nostalgia in every grain. From Daawat on your kitchen shelf to Royal in American homes, this 70-year-old rice baron has turned basmati into a global influencer.
Q2 FY26 was as fragrant as its long-grain flagship — Revenue ₹2,766 cr (↑31% YoY), PAT ₹164 cr (↑10% YoY), Operating Margin 11%, and an EPS of ₹4.72. The share trades at ₹417, about 12% off its high, with a P/E of 22.8× — basically, investors are paying as if rice were designer couture.
Return on Equity stands at a strong 16.7%, Debt-to-Equity is a mild 0.33, and promoter holding sits pretty at 51%, showing they still believe in their own carbs.
Over the last five years, profits have compounded 26% CAGR — because Indians may skip protein, but never pulao.
2. Introduction – The King of Grains Goes Global
LT Foods started when your grandparents were still soaking rice manually, and today, it’s selling basmati in 80 countries with a distribution network of 1,800 distributors and 1.5 lakh outlets.
From Daawat in Delhi to Royal in New York, it’s the culinary equivalent of Virat Kohli’s cover drive — elegant, consistent, and very profitable.
FY25 ended with ₹8,770 crore revenue, and FY26 is targeting ₹10,000 crore — because apparently, the only thing growing faster than rice fields is their ambition.
They’ve even added an international flavour — acquiring Europe-based Global Greens Group for €25 million to diversify beyond rice. So now, it’s not just biryani; it’s beans and peas too.
Meanwhile, the UK hub at Harlow (100,000 sq ft, 60,000 tonnes capacity) started rolling in July 2024 — a fancy way to say: “We now cook rice closer to the Queen.”
But here’s the fun bit — despite its FMCG avatar, LT Foods still keeps the soul of a farmer, partnering with 70,000+ farmers across 160,000 hectares, proving that true farm-to-fork isn’t just a marketing gimmick.
3. Business Model – WTF Do They Even Do?
Think of LT Foods as the Netflix of rice — endless genres, global subscribers, and sequels every harvest season.
Its business can be split into three shows:
a) Basmati & Specialty Rice (86% of revenue) – This is their “main series.” Daawat rules India, while Royal and Golden Star dominate the US (>55% market share). This segment alone could feed a continent — and the margins justify the feast.
b) Organic Foods (10%) – The “arthouse” spin-off. Certified organic grains from 70,000 farmers go to Europe and North America. FY25 saw 10% growth, and they’re launching organic products in India in FY26. Expect premium-priced quinoa in a Daawat box soon.
c) Ready-to-Heat & Ready-to-Cook (2%) – The “new show” that’s still finding its audience. Instant biryani kits, Kari Kari snacks, microwavable rice — basically, rice for people who only have 2 minutes between Zoom calls. Revenue dipped when Daawat Sehat was discontinued, but management expects a 21% YoY jump and breakeven by FY27.
And because no empire runs without infrastructure, LT Foods has built fully-integrated milling and packaging units across India, plus global facilities in the Netherlands, US, and UK.
4. Financials Overview
Metric
Latest Qtr (Q2 FY26)
YoY Qtr (Q2 FY25)
Prev Qtr (Q1 FY26)
YoY %
QoQ %
Revenue (₹ Cr)
2,766
2,108
2,464
+31.2%
+12.3%
EBITDA (₹ Cr)
309
229
265
+35.0%
+16.6%
PAT (₹ Cr)
164
149
168
+10.1%
-2.4%
EPS (₹)
4.72
4.27
4.85
+10.5%
-2.7%
Annualised EPS = ₹ 18.9 → P/E ≈ 22×.
Commentary: Revenue grew faster than Biryani orders on Eid. EBITDA margins held strong at 11%, proving that even amid global grain volatility, LT Foods can still serve profits with flavour. PAT was slightly lower QoQ thanks to higher depreciation and interest from capex expansion — basically, paying for future feasts.
