L T Foods Ltd Management Discussions

Economic review

Global economy 1

In CY2024, the global economy expanded by 3.3%, reflecting resilience in the face of persistent geopolitical conflicts, fluctuating trade dynamics and shifting monetary policies. Growth was uneven across regions, with advanced economies recording a modest 1.8%, while Emerging Markets and Developing Economies (EMDEs) grew at a faster pace of 4.3%. A key positive development was the decline in global headline inflation to 5.7%, down from 6.6% in CY2023, though pressures remained elevated in several emerging markets due to currency depreciation and supply chain disruptions. Despite these headwinds, global trade displayed early signs of recovery, supported by strong consumer demand, infrastructure investments and targeted policy support, even as restrictive trade measures and climate-related disruptions continued to weigh on merchandise flows.

Regional focus

The US economy expanded by 2.8% in CY2024, supported by strong consumer spending, labour market resilience and real income growth. Agricultural demand, including rice and other staples remained steady; however, global frictions, port congestion and regulatory unpredictability posed challenges. Growth is projected to slow to 1.8% in CY2025, as high interest rates weigh on activity, partly offset by household consumption, infrastructure investment and an improving trade balance.

The European economy grew modestly at 0.9% in CY2024 amid tight monetary conditions and geopolitical headwinds. While inflation declined, it remained above target and high interest rates continued to dampen investment and household spending. Employment remained stable, supported by public spending and fiscal support. However, weak external demand and trade disruptions constrained exports. A gradual recovery is expected from CY2025, as inflation eases and financial conditions improve.

The region achieved 2.4% growth in CY2024, as oil revenues subdued by voluntary production cuts and weak global demand. However, nonoil sectors such as tourism, retail and logistics remained resilient, supported by public investments and diversification programmes. Inflationary stemming pressures from commodity volatility and currency depreciation impacted consumer spending. Growth is projected to improve to 3.0% in CY2025, as oil markets stabilise, inflation eases and fiscal reforms progress.

Despite persistent uncertainties, the outlook for the years ahead remains cautiously optimistic, with GDP growth projected at 2.8% in CY 2025 and 3.0% in CY 2026.

This will be supported by resilient consumer demand and strategic policy adjustments. Inflationary pressures are expected to ease further, with global headline inflation declining to 4.3% in CY2025. As price pressures diminish, central banks will continue their transition towards more accommodative monetary policies. India and the Middle East are expected to remain strong markets for demand growth, while the US and EU regions will also expand, albeit at a slower pace compared to their Asian counterparts.

Trade tensions are likely to play a significant role in shaping the economic landscape. Nations worldwide are calibrating their approach to ongoing policy shifts and potential tariff adjustments by the US administration. For businesses, adaptability and strategic foresight will be essential. Companies are expected to prioritise regional trade partnerships and emphasise on resilient supply chains to mitigate the risks posed by trade disruptions. Emerging markets, with their expanding consumer base and manufacturing capabilities are envisioned to play a more influential role. With adaptable policies and technological advancement, the global economy is well-equipped to navigate challenges and capitalise on emerging opportunities.

Indian economy

The Indian economy emerged as one of the fastest-growing major economies globally. The economy recorded a GDP growth of 6.5% in FY2025. 2 Despite the challenges posed by geopolitical instability in

regions, such as Europe and the Middle East, Indias economy demonstrated significant resilience. Rural demand showed improvement, supported by record Kharif harvest and favourable weather conditions. While the manufacturing sector faced pressures from rising input costs, weak external demand and seasonal fluctuations, private consumption remained stable with consistent domestic spending. This helped sustain the overall economic activity.

Source: MoSPI

Inflation remained broadly within the Reserve Bank of Indias (RBI) target range, aided by effective monetary policies, even amid global commodity price fluctuations and supply-side pressures. The RBI maintained a calibrated approach, ensuring that inflation management did not hinder overall economic growth. Headline inflation eased to 3.3%, primarily due to a decrease in food price inflation. 3

Source: MoSPI

growth, with real GDP expected to expand steadily, supported by high- capacity utilisation and sustained public investment in infrastructure. Government CapEx, especially in sectors, such as transport, digital infrastructure and agriculture, continued to stimulate economic activity.

As one of the worlds top four economies, India is on track to become the third-largest by FY2028, with a projected GDP of $5 trillion. 4 The Union Budget has introduced significant income tax relief measures for salaried individuals, which are expected to boost urban consumption and fuel overall economic growth further.

Indias economic outlook remains positive amid a turbulent global environment. India remains on track for consistent, inclusive economic

FMCG industry Global

The global Fast-Moving Consumer Goods (FMCG) industry is undergoing rapid transformation, shaped by rising disposable incomes in emerging markets, evolving consumer preferences and expanding digital retail ecosystems. Todays consumers are increasingly seeking authenticity, traceability and transparency in sourcing, health- forward and clean-label products backed by both science and tradition and convenient yet high-quality solutions for time-constrained lifestyles. Responsible and sustainable practices across the food value chain are also becoming decisive factors in influencing purchase decisions.

Packaged food, the largest segment within the FMCG domain, continues to chart steady growth. This performance can be attributed to the ascending demand for long shelf-life products, Ready-To-Eat (RTE) meals and heightened consciousness around food safety and hygiene.

The pandemic has altered consumer behaviour in both developed and emerging markets, with home cooking and culinary experimentation

on the rise, consumers curating food choices around immunity, digestion, energy and low-GI needs and trust deepening in heritage-rich and responsibly sourced brands. Across North America, Europe, the Middle East and Asia, consumers are gravitating towards premium and organic food categories. In parallel, escalating geopolitical volatility and climate-induced disruptions to agricultural supply chains have directed the global focus on food security and the need sourcing and strengthen global distribution networks.

Rice continues to be a dietary staple for over half the global population. According to the United States Department of Agriculture (USDA), global rice consumption is projected to reach 541.6 million tonnes in 2025-26. Trade volumes are expected to stabilise at around 61.7 million tonnes, with Asia and Africa continuing to be the largest consumer regions. Concurrently, speciality rice varieties, such as Basmati and Jasmine are gaining prominence in North America,

Europe and the Gulf region, driven by evolving tastes and rising demand for authentic, aromatic grains. Moreover,

convenience-led consumption is on the rise. Developed markets are embracing value-added versions, such as pre-cooked rice, Ready-To- Eat rice bowls and DAAWAT® Biryani Kits. Diaspora communities in the US, Canada, UK and the Middle East are serving as natural gateways for these products, influencing broader market adoption of Ready-To-Eat Indian meals, seasoned rice variants and spice-integrated blends.

India

Indias FMCG sector remained steady, navigating volume pressures and subdued consumption trends. While rural demand showed early signs of stabilisation and premiumisation continued in urban centres, overall growth momentum remained constrained. The sector is expected to recover gradually, supported by improving macroeconomic conditions and a revival of consumption patterns across Tier II?€”IV towns, once inflationary pressures ease.

FMCG market of India

In 2025, the FMCG market of India is expected to reach $ 211 billion and further grow to $ 1,178 billion by 2034. 6 Rural demand in India, which had softened due to inflationary pressures and erratic monsoons in the past year, is now showing signs of a turnaround. This recovery is being

supported by stabilising food prices, improved monsoon projections and sustained support from the government through interventions such as PM-KISAN and MNREGA.

The rise of kirana-tech platforms, modern retail penetration and activation of Tier 2 and 3 markets are democratising access to branded FMCG products.

Growing preference for packaged food

The packaged food category remains i key growth engine across staples, such as rice, lentils and flour. Innovation in value-added food products, such as Ready-To-Eat products, Ready-To-Cook kits and culturally attuned offerings are gaining traction among consumer seeking healthier and more diverse choices. Simultaneously, the expansion of modern trade and e-commerce/ quick commerce channels are further enhancing product accessibility and availability in smaller towns.

Food choices are becoming more segmented from aspirational Tier 3 homemakers seeking affordable yet high-quality staples to urban professionals focusing on health, variety and speed and nutrition-aware families seeking low GI, organic and RTE & RTC products.

Indian packaged rice market

The modern consumer is increasingly inclining towards packaged rice for its hygiene, convenience and quality. This has positioned packaged rice as a substantial contributor to the packaged foods segment. The Indian packaged rice market is projected to grow from 13.0 Million Tons in 2024 to 20.1 Million Tons by 2033 benefiting from rising urbanisation and food safety awareness. Urban households and millennial consumers are especially preferring clean-label and easy-to-prepare options, making packaged rice a fast-expanding segment within the broader staples basket.

Organic food market

The organic food segment is growing rapidly as consumers are increasingly seeking cleaner, healthier alternatives due to rising awareness about food

Rising demand for packaged and branded staples

There is a growing consumer shift towards branded, hygienic and traceable food products. Rising urbanisation, elevated disposable incomes and heightened health consciousness are fuelling this trend. Within this context, packaged rice continues to witness robust growth, fuelled by demand for convenience, quality assurance and product differentiation through variants, such as organic and Ready-To-Cook rice.

Formalisation of food retail and modern trade expansion

The broadening reach of organised retail, e-commerce and quick commerce platforms is enabling deeper distribution of FMCG products across Tier-II and Tier-III towns. This shift is opening up considerable headroom for future growth.

quality and safety. Indias organic food market is projected to grow at a CAGR of 15.6% during 20252034, with packaged organic staples and snacks leading the trend. India has emerged as one of the fastest- growing sourcing and consumption hubs in the organic segment. 7

Organic food market

Premiumisation and health-led innovation

Value-added offerings such as low-GI rice, DAAWAT® Quick Cooking Red Rice, DAAWAT® Quick Cooking Black Rice, immunity-boosting ingredients and clean-label products are gaining prominence among consumers. This growing preference for nutritious and trustworthy options is creating opportunities to serve niche yet fastgrowing segments, particularly within the organic and health-focused space.

Export potential for value-added rice categories

India is the largest exporter of rice globally and rising global interest in basmati and speciality rice offers further headroom for expansion.

In North America, Europe and Gulf countries, demand is being driven not only by mainstream markets but also by diverse ethnic communities. This rising preference for aromatic and convenient food products such as pre-cooked rice and DAAWAT® Biryani Kits is creating strong tailwinds for international growth among branded rice players.

Company overview

LT Foods is an Indian-origin global FMCG Company in the consumer food space, with a legacy spanning over seven decades in the speciality rice anc rice-based foods business. From its roots in Basmati rice, the Company has evolved into a billion-dollar enterprise with a sharp focus on premium rice variants, organic products and value- added packaged foods. Today, the Companys presence spans over 80 countries, including India, the US, the UK, Europe and the Middle East. This diverse global footprint is supported by a strong global distribution network and advanced manufacturing capabilities across the globe.

The Companys brand portfolio includes globally recognised names such as DAAWAT® in India and other 80 countries, Royal® and Golden Star in the US, Heritage in Mauritius and other regional and private-label brands catering to niche preferences and ethnic markets.

While strengthening its existing portfolio of Basmati and other speciality rice, LT Foods is also expanding into emerging food categories with brands like Ecolife (organic staples) and Kari Kari (premium snacks), aligning with consumer trends around wellness, sustainability and convenience. These brands are positioned across multiple consumer segments and price points, enabling LT Foods to stay relevant to the consumers and leverage its brand equity and global distribution network.

The Company continues to focus on enhancing household penetration, widening consumer touchpoints and strengthening market share across urban and rural geographies. These efforts are supported by sustained investments in distribution expansion, targeted marketing and digital engagement, which are helping LT Foods deepen consumer trust and preference.

The Companys farm-to-fork business model and its investments across the value chain are key growth drivers.

As the category continues to expand, LT Foods is well-positioned to grow its market share through its strong brand presence, global distribution network and modern manufacturing and packaging facilities in India, the U.S. and the U.K. These strategically located facilities ensure consistent quality, cost efficiencies and full traceability across the value chain.

With deep-rooted relationships with farmers, automated logistics infrastructure, an expansive distributor base and diversified procurement base, LT Foods continues to strengthen its leadership in the global Basmati rice and other speciality rice while scaling new growth frontiers in packaged and organic food categories.

Operational performance review

The Companys market operations a diversified across key geographies - India, US, UK and Europe - and procurement is diversified across India, Africa and Thailand allowing u flexibility in sourcing as per market conditions.

The Companys product portfolio has a strong skew towards the branded speciality rice business, which accounts for close to 85% of the Companys revenue share. The focus on branded rice products, has allowed the family of premium, branded speciality rice brands - DAAWAT®, Royal®, Rozana, Heritage, Devaaya and Indus Valley - to remai in high demand by our consumers ii India, the US, UK, EU and the Middle East. This covers Basmati, DAAWAT® Thai Jasmine Rice, Arborio (US) and Indian Regional rice varities.

Our Organic Food & Ingredients and RTE & RTC portfolio forms a vital part of the Companys product diversification and market expansion strategy and remains a high priority. To drive growth in these categories, the Company leverages its well- established distribution network across India, the US, the UK, the EU and the Middle East. Originally built

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to scale its branded rice portfolio, this network now enables effective reach and deeper penetration for Organic Food & Ingredients and RTE & RTC offerings, ensuring greater accessibility across key global markets.

Our Organic Food and Ingredients and RTE & RTC portfolio is an important part of our product diversification and market expansion strategy and is a high priority for the Company. The Company relies on its well-established distribution network, in India, US, UK, EU and the ME. This network was initially established for branded rice products to reach customers in its Organic Food and Ingredients and RTE & RTC segments.

Revenue and revenue growth by segments

	( in crores)	Growth%
Basmati and Other Specialty Rice	7,561	11%
Organic Foods and Ingredients	933	29%
RTE & RTC	188	21%*

Global distribution and sales network

LT Foods has built a robust global distribution network of 2,000+ distributors across 80+ countries. Its strongest presence is in India with over 1,700 distributors, while in the United States it operates through 150 distributors. In the United Kingdom, the Company is present through 44 distributors, in the Middle East through 23 distributors, in the Far East through 28 distributors and in Europe through 7 distributors.

This extensive footprint enables the Company to effectively serve diverse markets, enhance brand visibility and ensure consistent product availability worldwide.

Distribution hubs

India	30
Dubai	2
Netherlands	2
UK	1
US	3
Uganda 1

Manufacturing, processing and storage facilities

The Company has expanded manufacturing presence in Houston (Texas, USA), Hanslow (UK) and Rotterdam (Netherlands), to be closer to the consumers in both markets and be able to be flexible and respond better to any unforeseen changes in global supply chains.

These past investments are expected to stand the Company in good stead over the next few years and reinforce LT Foods operational philosophy locally in the markets where it does business. The Company may also consider expansion based on the growth of the market for its products.

Sustainable sourcing and operations

LT Foods has achieved a global milestone by becoming the first company in the world to earn Level 3 verification under the SRP (Sustainable Rice Platform) Assurance Scheme. This recognition highlights the Companys leadership in advancing sustainable farming practices and supporting farmers at the field level through the provision of high-quality seeds at competitive costs, automated transplanting and weeding solutions, and the use of drones for efficient agrochemical application to improve yields.

In line with its climate-smart agenda, LT Foods is also the first company globally to secure SRP verification for low-carbon rice cultivation. Independent audits confirm that rice cultivated under SRP standards has delivered a significant reduction in carbon emissions compared to baseline practices, reinforcing the transparency and credibility of the initiative.

By pioneering low-carbon rice cultivation, LT Foods has set a benchmark for the industry. The Company continues to scale sustainable agricultural practices across its value chain, with a strong commitment to decarbonising operations and contributing to a resilient, responsible global food system.

Digital transformation and technology investments

In the last one year, LT Foods has expanded its technology-related spends, driving digital transformation initiatives across the organisation and investing more on building cyber resilience within the Company.

Despite volatility in input and freight costs internationally, the business effectively balanced premiumisation, channel expansion and operational discipline to protect and expand margins. Key achievements included robust volume and value growth in the flagship Basmati and speciality rice segment, double-digit progress in key international geographies and the continued scaling of branded, organic and value-added product lines. Investments in manufacturing, digital transformation and sustainability continued to underpin the Companys strategy for delivering long-term growth and value creation.

Growth strategy

The Companys growth strategy for the coming years is focused on driving premiumisation, expanding its global footprint via organic and inorganic initiatives and deepening operational excellence with continuous innovation, digital transformation and focus on sustainability.

Distribution and market expansion

In India, the Company is deepening penetration by entering new towns, expanding household reach and strengthening its route-to-market across general trade, modern trade, e-commerce and emerging formats such as quick commerce and food service. This ensures that LT Foods captures growth from rising disposable incomes and expanding demand in tier II and III markets.

Internationally, the focus is on scaling presence in high-potential geographies such as North America, the UK, continental Europe and the Middle East. New global distribution hubs, manufacturing facilities and localised brand strategies are enabling LT Foods to widen consumer access while improving service levels and agility.

Organic and inorganic growth

LT Foods continues to drive organic growth through brand-building, global distribution expansion and innovation-led diversification into convenience and health- focused categories. Alongside, the Company actively pursues inorganic opportunities to enter adjacent categories and strengthen its global footprint. The strategic acquisition of Golden Star in the US is a recent example that complements the existing portfolio and opens new growth avenues.

Premiumisation

A key focus is to grow the share of premium and value-added products in the overall portfolio. The Company continues to introduce innovative new launches and a broadened range of regional and ethnic rice varieties and targeting both mainstream and niche consumers globally. The RTE & RTC and healthy snacking business lines are being scaled up, with capacity expansions in the US and India, as well as new launches in speciality rice space such as DAAWAT ® Quick Cooking Red Rice and DAAWAT®

Quick Cooking Black Rice for healthconscious and convenience-seeking audiences.

Sustainability focus

The managements vision is to build a future-ready and sustainable organisation that balances profitability with responsibility. To achieve this, the Company continues to embed sustainability across its value chain by strengthening brands with purpose-driven investments, expanding the global distribution network responsibly, diversifying the product portfolio and evolving the culture of the organisation.

Business segments

Basmati and speciality rice

In FY25, the Basmati and Speciality Rice segment posted a revenue of ?7,561 crore, contributing approximately 86% to the Companys total income. Basmati rice remains at the core of the portfolio, with the business anchored in decades of expertise in sourcing, processing and delivering premium-quality rice to consumers across diverse geographies. The segment recorded a year-on-year growth of 10%, with branded rice volumes growing by 13%, supported by increased consumer demand and continued market leadership. This performance was a result of portfolio strength, geography-led marketing initiatives and brand-driven market expansion across key geographies. This vertical operates across all major consumption and export geographies, supported by both domestic brands and regional international assets.

During the year, the Company further strengthened its flagship and international brands. In India, the household reach of DAAWAT® has grown significantly?€”from 45.56 lakh homes in March 2023 (Kantar Household Panel MAT Mar23) to 56.2 lakh homes in March 2025 (Kantar Household Panel MAT Mar25)?€”

demonstrating the strong connection we have built with consumers across segments and regions. In North America, the Company holds over 55% share in the branded Basmati rice category. Also, the Golden Star brand maintained its #1 ranking for Jasmine rice in the U.S. The DAAWAT® Thai Jasmine Rice lines were met with positive response and enhanced the segments consumer reach. Strategic investments in consumer activation, such as DAAWAT® World Biryani Day and a high-profile national campaign with Shah Rukh Khan, deepened brand engagement and enhanced visibility across new consumer segments and geographies.

The business pursued omni-channel market strategies expanded reach, enhanced supply reliability and drove growth in modern trade, e-commerce and alternate channels. The segment broadened distribution in India and internationally and further developed its market presence in the Middle East, Continental Europe and the UK.

With a strong innovation pipeline, sharp focus on premiumisation and consistent operational improvements across procurement, manufacturing, digital tools and supply chain partnerships, the Basmati and Speciality Rice segment delivered another year of record performance.

86%

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Revenue share in FY25 India Business

The India business delivered a strong performance in FY25, maintaining its leadership position in the premium and branded basmati and speciality rice categories. Revenue from the India segment accounted for 30% of total segment revenues, supported by continued momentum in both value and volume growth. Growth was led by the premium portfolio, with targeted branding initiatives, enhanced product mix and sustained premiumisation efforts. A key driver of growth has been the Companys focus on increasing household penetration in tier II and III towns supported by wider distribution reach. India continues to be the heart of LT Foods innovation strategy, with many products and concepts being tested in the domestic market before being scaled globally. Campaigns like DAAWAT® Se Rozana Khushiyan have played a pivotal role in building daily consumption relevance across consumer segments.

Sales and distribution

Sales and distribution infrastructure underwent significant expansion during the year, with broader market access and stronger consumer connect. The retail network was extended to over 1.50 lakh outlets and the distributor base grew to more than 1,400 partners nationwide. The Company entered 250 new towns to increase its presence in both urban and rural India and extending its consumer touchpoints to more than five million households. Modern trade and e-commerce continued to register double-digit value growth, the e-commerce business saw notable value growth driven by performance marketing campaigns and in-store initiatives. Newer channels, including quick commerce also contributed to overall momentum with specialised channel offerings and improved last-mile execution.

Several digital initiatives streamlined operations and improved efficiency. The rollout of a portal for modern trade and foodservice enabled real-time order tracking and greater distributor transparency. Route-to-market architectures were further optimised using the Theory of Constraints approach to improve product availability and visibility across channels. These integrated efforts combining data- driven decision-making, marketing innovation, partner engagement and operational excellence, have created a sales and distribution ecosystem capable of supporting continued growth and sustaining market leadership in India.

North America

North America contributed 41% of Basmati and Speciality Rice segment revenue. The region delivered strong double-digit revenue growth over the year, driven by a well-diversified product mix, robust demand for high- quality branded Basmati and Jasmine rice and notable success with value- added and organic offerings, enabled by well-defined marketing strategies. Royal® has successfully moved beyond the South Asian diaspora into mainstream American households and scaled into a global premium food brand while maintaining authenticity. The products strong consumer stickiness is built on consistent quality and nostalgic association for ethnic consumers.

Growth in North America was further supported by expanding the portfolio to address evolving consumer preferences, including the rapid scaling of the Jasmine rice category through the Golden Star brand which has strengthened its standing as the #1Jasmine rice brand in the U.S. Value-added categories continued to gain momentum, with Ready-To-Eat (RTE) product sales doubling year-on-year, driven by heightened demand for convenience and authenticity among a diverse consumer base.

Strategic investments in digital marketing, in-store activations and consumer engagement campaigns heightened the visibility of core brands across mainstream and ethnic retailers. Co-marketing collaborations, such as the partnership with Kikkoman and a steady expansion into additional U.S. retail and foodservice outlets supported market penetration and consumer acquisition. Enhanced supply chain resilience, achieved through logistics optimisation, direct shipping relationships and localised warehousing, ensured product availability even amid global freight and container disruptions.

Growth priorities for North America include broadening retail reach by entering more than 6,000 new distribution points, launching additional value-added and health- focused products and continuing to invest in brand-building and operational excellence to reinforce both leadership and margin accretion.

Europe made significant progress on both revenue growth and strategic market penetration, with the region accounting for 19% of the revenue. Despite a challenging operating environment that included higher logistics costs and regulatory complexities, the business registered a 2% year-on-year increase in revenue and successfully expanded its branded, private label and B2B businesses. Europe is witnessing growing affinity for clean-label, unpolished and aged Basmati rice, especially among health-conscious consumers. The Company continued to expand its presence in both branded and private label categories, tailoring formats and packaging to align with regional regulations and sustainability requirements. Key markets in continental Europe saw steady growth in retail distribution and foodservice partnerships.

UK

The UK operations recorded strong growth momentum in FY25, supported by the ramp-up of the new manufacturing facility commissioned in July 2024. This facility enabled LT Foods to secure supply arrangements with four of the top five UK grocery retailers in the private label segment, significantly strengthening its market position. The facility also enhanced operational efficiencies, reduced logistics costs and improved responsiveness to retailer requirements. Growth was led by both private label and branded offerings.

* t. i.

Middle East and Rest of the World

The Middle East demonstrated steady growth and ongoing portfolio diversification throughout the fiscal year and contributed 10% of revenue.

Strategic initiatives included expanding distribution and a heightened focus on strengthening brand equity. The Company successfully expanded its presence in Saudi Arabia by opening a subsidiary and an office, while also strengthening its reach across other Gulf markets through new distributor partnerships and launching economy and premium product lines tailored to local tastes and consumer segments. Demand for economy segment rice in select Middle East countries supported volume gains, while premium offerings in the UAE and Saudi Arabia continued their pace of double-digit revenue growth.

The Rest of the World including Africa and Asia Pacific recorded a solid performance in markets with growing diaspora populations and increasing adoption of Indian and international cuisines. Expansion into new African markets leveraged the groups brand equity and dependable logistics, while further inroads were made into Southeast Asia and Oceania

through export partnerships and the introduction of tailored SKUs for both retail and foodservice channels. In Asia-Pacific, Basmati rice continues to gain traction among both diaspora and mainstream consumers, particularly in Australia, Singapore and Malaysia, supported by tailored food products and growing interest in organic and heritage grains.

Organic food and ingredients

With global consumers becoming more discerning about the food that they consume, the Organic Food segment has witnessed a consistent rise in momentum. Responding to this shift, the Company has developed a robust organic business with a comprehensive portfolio of products. These offerings cater to the growing demand of organically farmed food without the use of synthetic chemicals or genetically modified inputs. The organic business is operated through the Companys wholly owned subsidiary, Nature Bio Foods (NBF) which has emerged as a globally respected platform for organic, non-GMO and traceable agriingredients. The vertical has grown beyond niche to become central to LT Foods sustainability and health- forward growth strategy, reflecting its commitment to regenerative agriculture and transparent sourcing.

NBF operates across India, Uganda, Turkey, the US and the Netherlands (as its EU headquarters), with active sourcing also from Argentina,

Thailand and other parts of Africa, enabling diversified sourcing and climate resilience. The Company collaborates closely with over 96,000 farmers who adhere to strict organic cultivation standards, ensuring full traceability and compliance with both Indian and international standards. Products are certified under globally recognised frameworks and holds international accreditations such as USDA NOP, EU Organic, Bio- Suisse, Demeter, Naturland and Fairtrade. These certifications reinforce the Companys credibility as a trusted partner to the worlds most demanding organic brands and retailers.

The organic business is supported by responsible sourcing and a strong emphasis on food safety.

The Company has institutionalised eco-conscious processes across its operations and was among the first Indian food companies to be honoured with the prestigious CII Food Safety Award. The organic vertical directly contributes to rural income enhancement, soil health and biodiversity. LT Foods provides its farmers with stable pricing, buyback guarantees and training on organic cultivation, climate resilience and water conservation. Many of these farmers are part of Organic Farmer Producer Organisations (FPOs), supported by the Company. Pilots in blockchain-based traceability are enabling seed-to-shelf audit trails, further reinforcing transparency and ESG accountability.

During the year, the Company expanded its procurement and manufacturing base with the addition of a new facility in Africa.

This expansion further reinforces its backward integration and supply resilience.

Europe continues to be the largest market for NBF, with key countries including Germany, France, Netherlands and Switzerland driving demand due to growing awareness around climate impact and ethical sourcing. In North America, organic rice and lentils are gaining popularity among vegan and gluten- free consumers, with presence in speciality chains, co-ops and ingredient brands. The US subsidiary, NBF USA has strengthened the Companys on-ground consumer interface and fulfilment capabilities.

In India, although the market is at an early stage, promising traction is emerging in metro cities. Also, Turkey and Africa serve as strategic crop diversification and production zones.

The product portfolio includes organic DAAWAT® Quick Cooking Red Rice and DAAWAT® Quick Cooking Brown Rice, lentils, chickpeas, kidney beans, turmeric, cumin, coriander, quinoa, amaranth, foxtail millet, soybeans, sesame and mustard. This wide-ranging offering meets the demand from both retail consumers and institutional buyers across continents.

On the consumer side, the Companys adoption of a stock-and-sell model in the US and Europe has enabled improved service levels and prompt delivery capabilities. This has enhanced its ability to cater to both institutional clients and retail consumers, while also expanding its reach in global organic markets. Focused product innovation and consumer-led diversification remain central to the segments growth roadmap.

In FY25, the Organic Food and Ingredients segment generated revenue of ?933 crore, representing approximately 11% of total revenue?€”a 29% increase over the previous year, driven by expanded

distribution in Europe and the US. The strong performance highlights the Companys growing reputation as a trusted organic foods provider globally.

Revenue share in FY25 RTE and RTC

The Companys RTE and RTC portfolio features a growing selection of range of Meal Kits, Instant Rice Bowls, Microwaveable Rice and Rice Cracker Snacks range. These products are tailored for consumers seeking diverse degree of convenience while holding high standards of quality and delivering superior taste profile. As urbanisation changes meal patterns and more people look for quick, easy- to-prepare options, this segment has seen consistent growth both domestically and internationally.

Our product innovation and R&D infrastructure helps us in developing new concepts and ideas based on deep consumer insights and a systematic 5 stage gate development process. Each product is carefully developed to deliver superior taste profile with quality ingredients and to leverage latest manufacturing processes to hold nutritional value. Our manufacturing processes are right amalgamation of traditional cooking methods and modern shelf-life retention technologies. The Company continues to strengthen this segment under brands such as DAAWAT®, Royal®, and Kari Kari.

We are committed to taking Indian flavours and meal solutions to global consumers and bringing global flavours and meal solutions to Indian consumers.

Investments in advanced packaging, automation and large-scale culinary innovation have established a strong foundation for the future of the RTE & RTC portfolio. The Company is also exploring new sub-categories and products to broaden its presence in the ready-meal market.

Distribution has expanded across general trade, modern retail and online platforms, with particular appeal to young consumers and working households. Quick commerce is emerging as an important channel, offering last-mile delivery convenience. Institutional sales?€”through HoReCa, airline catering and corporate foodservice?€” are gaining momentum. Export demand in markets such as the US and UK is rising, as both diaspora and international consumers seek Indian- inspired RTE & RTC offerings. Pilot launches in the Middle East, Australia and the UK are helping increase the segments global reach.

The RTE & RTC business benefits from backward integration with the Companys core rice and organic divisions, ensuring consistent quality and supporting a unified brand experience.

In FY25, the RTE & RTC segment posted revenue of ?188 crore, contributing about 2% to overall revenue. As demand for convenience foods continues to rise, this segment remains a central driver of the Companys long-term growth strategy.

Revenue share in FY25

Brands, innovation and category development

LT Foods, as a purpose-led organisation, has built a strong house of brands that embody quality, authenticity, nutrition and innovation to meet evolving consumer needs. Each brand plays a strategic role, either by reinforcing trust in core categories or by pioneering new segments. The Companys branding approach is anchored in two priorities- strengthening and premiumising flagship brands and other regional brands in core staples and developing category-defining innovations in emerging segments. This strategy reflects the Companys transformation from a small trading entity to a global, Indian-origin FMCG company in the consumer food space.

DAAWAT® remains the flagship brand in India, with a tiered portfolio catering to aspirational, healthconscious and value-seeking consumers. Premium offerings such as DAAWAT® Traditional and DAAWAT ® Biryani are positioned for special occasions and gourmet cooking. The Company has also introduced niche premium products

such as DAAWAT® Quick Cooking Red Rice and DAAWAT® Quick Cooking Black Rice, tapping into rising demand from health-conscious and experimental consumers who prefer nutrition-rich and heritage grains. Alongside, Golden Star, LT Foods flagship Jasmine rice brand, further elevates the Companys premium footprint in targeted markets.

For everyday consumption, DAAWAT® Rozana Gold and Rozana Super serve value-plus households in emerging and rural markets. Health- oriented products such as DAAWAT ® Quick Cooking Brown Rice address nutritional gaps and the ready-meal range under DAAWAT® Cuppa Rice and Mini Meals offers quick solutions for urban consumers.

Through campaigns such as #DAAWAT® Moments and Rozana Khushiyan, the brand has deepened both emotional and functional connect across demographics. The Company has expanded its portfolio into regional rice variants as well, tailoring offerings to local cuisines and preferences across India including popular choices like Sona Masuri and Gobind Bhog. By offering these locally rooted varieties, the Company continues to strengthen its connect with diverse consumer bases and widen its appeal beyond core Basmati segments.

In North America, Royal® has retained its position as the number one Basmati brand, expanding from a diaspora-focused label into a household name across mainstream America. Distributed through club stores, leading supermarkets, e-commerce platforms and ethnic outlets, Royal®s portfolio now includes Ready-To-Eat bowls, Ready- To-Cook kits and fusion offerings that blend traditional rice with global flavours. The brands positioning ?€” Tradition you can trust- resonates with both ethnic and mainstream consumers, while ongoing product trials cater to regional tastes such as Latino and Mediterranean cuisines.

Devaaya continues to strengthen LT Foods presence in the broader staples basket, offering a clean-label

range that includes chakki atta, unpolished dals, poha, suji, besan and single-origin rice. Positioned at the intersection of nutrition, purity and accessibility, Devaaya appeals to modern homemakers seeking safe, wholesome staples.

Ecolife, the consumer-facing brand of the organic vertical, represents ethical farming, soil-to-shelf traceability and non-GMO assurance. Its portfolio spans organic rice, millets, ancient grains, dals, spices and high-protein, gluten-free blends. Positioned largely in premium retail and e-commerce, Ecolife is steadily gaining traction in India, Europe and select US markets as a preferred choice for responsible consumers.

Innovation is central to LT Foods growth strategy. Apart from launching new products the Company focuses on smarter packaging like zip-locks, microwave-safe bowls and portion pouches. It also introduces new formats such as mix-and-match kits and infused rice. In addition, LT Foods creates channel-specific SKUs for quick commerce and HoReCa and customises products to suit local tastes in international markets.

Over the years, LT Foods has created new consumption categories, including instant ethnic comfort meals through DAAWAT® Cuppa Rice. Regionalised DAAWAT ® Biryani Kits for Lucknowi, Kolkata and Hyderabad styles have further broadened the portfolio. Through Devaaya, the Company is also expanding access to clean staples in value-sensitive households, while simultaneously penetrating the market with DAAWAT® Thai Jasmine Rice, Arborio rice, regional rice and other speciality categories to capture evolving global and domestic consumer preferences. Brand marketing blends emotional storytelling with product authenticity and building trust across generations.

Supply Chain and Sourcing

The Companys supply chain is a strategic backbone that enables its ability to deliver consistent quality, traceability and innovation-led growth across markets. Operating across

more than 80 countries, it reflects the Companys deep-rooted philosophy of farmer partnerships, technology integration and end-to-end control from seed development to consumer delivery. Its globally distributed manufacturing and supply chain network ensures consistency, speed and compliance across markets, while providing a diversified demand base insulated from regional shocks, local adaptability in food products and price packs and regulatory readiness for country-specific certifications. With an eye on both scale and sustainability, the supply chain ensures precision in raw material procurement, predictable pricing and planning cycles and category-specific input alignment, while enabling customisation across diverse geographies and regulatory environments.

Over 1,00,000+ farmers are engaged under formal and informal arrangements across India, Thailand, Uganda and other sourcing geographies. These partnerships extend beyond transactions to include the provision of certified seeds, farming training, soil health improvement techniques and support for transitions to organic, low-water and precision farming practices. Long-term price assurances, offtake guarantees and integration into digital traceability systems strengthen farmer confidence and supply predictability. In the organic segment, Nature Bio Foods drives full-spectrum capacity building in regenerative agriculture, with many farmers operating under FPO structures supported by the Company.

The Company has established a globally benchmarked processing and infrastructure footprint comprising over 10 processing facilities across India, the US, Europe and Africa. These facilities include state-of-the- art parboiling, aging and milling units for rice, dedicated organic processing hubs with segregation and residue testing capabilities and retort and dehydration units for Ready-To-Eat (RTE) meals. In-house laboratories and food safety teams ensure compliance with stringent

international standards, with all facilities certified under FSSC 22000, BRC and ISO. Investments in cold storage and advanced warehouse management systems have further streamlined inventory management, ageing processes and B2B fulfilment. The Companys key capabilities also include climate-controlled silos for consistent quality, customised packaging units for different markets and ERP-based central planning hubs to improve port-to-market turnaround times.

The Companys sourcing network spans India, Thailand, Myanmar, Africa, Turkey and other origins, supported by a sophisticated trade- flow architecture. Strategic levers such as country-of-origin compliance for destination markets, multicurrency hedging, use of satellite

weather data to de-risk harvest cycles and cross-functional planning between procurement, logistics and marketing optimise both cost and efficiency.

Sustainability is embedded in sourcing practices, with blockchain- based pilots for farm-to-fork traceability in the Organic and Basmati verticals, adherence to Fairtrade principles, biodiversity protection mandates and residue- free testing protocols. Rainwater harvesting initiatives in Punjab and Haryana and farmer training on reducing carbon and water footprints reinforce the Companys commitment to climate-positive agriculture, while incentive schemes encourage adoption of sustainable practices.

On the distribution front, multimodal logistics covering sea, rail and

road are integrated with ERP-driven demand planning and modern warehouse management systems, enabling real-time inventory visibility across India, the US and Europe. E-commerce-friendly packaging, small-unit customisation and strategically positioned fulfilment hubs support quick commerce and retail replenishment. This distribution readiness ensures on-time availability, minimal spoilage and consistent stock presence across retail, foodservice and online channels. The Company is further future-proofing its supply chain through smart AI/ML-based forecasting, expansion into climate- resilient sourcing zones, zero-carbon logistics pilots in India and Europe, circular packaging innovations and real-time consumer service dashboards for fulfilment tracking.

Opportunities and threats

Opportunities

Expanding global demand for speciality rice

The rising appetite for speciality rice, including Basmati and organic variants, presents a compelling growth opportunity. In India, increasing household penetration, rising disposable incomes and growing consumer preference for premium and health-oriented food categories are driving category expansion. Globally, sustained demand across North America, Europe and the Middle East is creating further headroom for growth. LT Foods is well-positioned to capture this demand through calibrated branding, product innovation and strengthened global distribution strategies.

consumer preferences. LT Foods is capitalising on this trend by investing in product innovation, including Ready-To-Eat (RTE) rice variants. Such offerings cater to urban lifestyles and health-conscious clientele.

Government support to agriculture and food processing

Policies and initiatives such as PM Krishi Sinchayee Yojana, PM Fasal Bima Yojana, National Mission for Sustainable Agriculture and National Food Security Mission continue to strengthen Indias agricultural ecosystem. These measures enhance farm productivity, reduce risks for farmers and promote sustainable farming practices, which are creating long-term opportunities to strengthen farm linkages and ensure sustainable sourcing.

Consumption shift from loose to packaged rice

The transition from loose to branded and packaged rice in both Basmati and non-Basmati categories in India offers significant headroom for growth. LT Foods, with its strong brand equity and robust global distribution network, is well-positioned to capture this shift towards packaged staples.

Innovation in convenience products

A growing shift towards quick, healthconscious meal solutions is reshaping

Rising export potential

Indias dominant position in Basmati rice production, combined with surplus non-basmati rice availability provides a strong foundation for expanding exports. With competitive pricing versus other exporting nations and increasing global demand for aromatic and speciality rice, LT Foods has the opportunity to strengthen its global footprint.

The Companys established global distribution network and brand equity across the countries allow it to further capture share in both basmati and value-added rice categories.

Threats

Climate and weather uncertainty

Unpredictable climate patterns and extreme weather events can disrupt rice cultivation, affecting both yield and quality. This poses a challenge for consistent raw material availability and supply chain reliability. The Company mitigates this risk by strengthening its supplier network and diversifying sourcing regions to secure raw material availability.

Commodity price volatility

The Company is exposed to volatility in paddy and other input costs, which can exert pressure on operating margins. The Company mitigates these risks by making more investments in brands and increasing its strong branded and consumer business portfolio.

Intense market competition

The packaged food sector is becoming increasingly competitive, with both traditional and emerging players vying for consumer attention. Shifting dietary trends and the rise of alternative grains also pose a threat to traditional rice consumption. The Company addresses these challenges through continuous product innovation, portfolio diversification into value-added and health-oriented categories and by reinforcing brand equity across domestic and international markets.

Geopolitical risks

Global operations remain susceptible to policy shifts, trade restrictions and export regulations across critical global markets. LT Foods continues to monitor such developments and implements diversified sourcing and export strategies to stay resilient.

Risk management

LT Foods follows a proactive and structured approach to risk management embedded across all levels of its operations. The Company remains focused on identifying, evaluating and addressing a wide array of business risks in alignment with its long-term strategic objectives.

A robust risk governance framework, comprising the Board of Directors, dedicated risk committees and function-level leadership ensures that emerging potential threats are systematically assessed and mitigated.

Through prompt mitigation actions and a clear escalation matrix,

the Company is well-equipped to manage risks related to compliance, supply chain, financial performance, cybersecurity, evolving consumer preferences and climate change.

Please refer page 20 of the Integrated Report for details on the Risks and Concerns pertaining to the business along with their mitigation plan.

Financial overview

In FY25, LT Foods demonstrated resilient and consistent performance, led by balanced growth across geographies, brands and channels. Consolidated revenue inculding other income reached ?8,770 crore with a 12% increase over the previous year and sustaining a five-year Compound Annual Growth Rate (CAGR) of 20%. Gross profit increased to ?3,030 crore, driven by an improved product mix, higher sales in premium segments and targeted cost optimisation efforts.

EBITDA for the year stood at ?1,067 crore with 8% year-on-year growth, while the EBITDA margin remained stable at 12.2% despite heightened freight and advertising expenses associated with global expansion and major brand campaigns. Profit after tax rose to ?612 crore, with ongoing investments in capacity, technology and marketing to support the long-term future growth.

Consolidated financial performance

[? in crore]

Particulars	FY2024-25	FY2023-24
Total Revenue	8,770	7,822
Gross Profit	3,030	2,544
EBITDA	1,067	988
EBIT	881	835
PBT	793	752
PAT	612	598
EPS	17.43	17.09

Key financial ratios (Consolidated)

Particulars	FY2024-25	FY2023-24	% change	Details of significant changes (i.e. change of 25% or more as compared to the immediately previous Financial Year
Debtor no of days	31	32	-1%	NA
Inventory turnover	277	242	15%	NA
Interest coverage	10.0	10.1	0%	NA
Current ratio (in times)	1.9	2.1	-11%	NA
Debt Equity Ratio (in times)	0.16	0.14	12%	NA
Net operating margin (in %)	7.0%	7.6%	-9%	NA
Operating profit Margin (in %)	12.2%	12.6%	-4%	NA
Return on Net Worth (in %)	16.8%	19.2%	-12%	NA

Company outlook

The Company is set to capitalise on the increasing global demand for speciality and organic food products, expand its presence in established markets like India, the U.S., and Europe, and venture into the Middle East and Far East.

Food innovation and value addition remain central to LT Foods growth strategy. Keeping this in mind, the Company is working on its LT Foods 3.0 Vision for the next ten years, aiming to become a global, diversified branded foods company and has created an internal workgroup within the organisation, drawn from different businesses, that will shape this vision. LT Foods eight senior advisors, all of whom are industry veterans, will support this workgroup along with the management team and board, to finalise LT Foods 3.0 Vision over the next 4-6 months (TBC).

LT Foods 3.0 Vision aims to build on the Companys existing strengths in distribution, procurement and manufacturing and brand building, while expanding into new and innovative food segments, such as value-added, healthy, organic products, and new offerings in the Ready-To-Eat (RTE) and Ready-To- Cook (RTC) segments. The goal is to increase revenue share of the Organic Food and Ingredients and RTE &

RTC segments, from current 13%

to at least 50% of LT Foods annual turnover over the next 10 years, with the mature specialised rice segment contributing 10-12% revenue CAGR over next 5 years.

The LT Foods board and management team will share the outcomes of the LT Foods 3.0 Vision document, with all relevant stakeholders, as soon as they are finalised.

Human resource

The Company continues to cultivate a high-performance, inclusive and digitally empowered workplace through structured talent acquisition, capability development and employee engagement initiatives. A future- ready talent pipeline is being built through strategic campus partnerships and rigorous in-house training, particularly for roles in sales, manufacturing and technical functions. Continuous learning is embedded through mobile-first platforms, leadership workshops and collaborations with esteemed institutions.

Employee wellbeing remains a foundational pillar, supported by the Together We Care framework that addresses physical, emotional, financial and digital wellness. Initiatives around diversity, especially those centred on women empowerment are being reinforced

through recognition programmes and leadership opportunities. The Company also utilises tools like EMBER to proactively manage engagement and retention. Safety, compliance and workplace security are governed by dedicated EHS teams and formal audit protocols.

2,700+

?€??€? -

Total employees as on 31st March 2025

Please refer page 80 of the Integrated Report for more details on Human Resource.

Information technology/ digital transformation

LT Foods continued to strengthen its digital foundation with a strategic focus on automation, process improvement and system integration to support the scale and complexity of its growing global operations. These initiatives align with the Companys broader objective of enhancing decision-making, operational efficiency and preparing the business for future scalability.

During the year, the Company upgraded its core SAP ERP systems, seamlessly integrating them with advanced planning and reporting modules. This has resulted in greater transparency and accuracy in financial and operational data across multiple

geographies. In line with global best practices, LT Foods also initiated the adoption of machine learning- based forecasting models to further sharpen its demand planning and inventory management, especially across its Basmati and organic business lines.

A major step forward in digital operations was the implementation of a centralised Business Intelligence (BI) platform. This streamlined the flow of information for faster, insight- driven decisions across strategic and operational levels.

Also, LT Foods is proactively working on enhancing its consumer and distributor engagement platforms by integrating CRM systems with its supply chain to ensure better visibility and service levels across the value chain. These integrations have strengthened omnichannel distribution, boosting performance in modern trade and e-commerce.

Governance and audit

The Company is dedicated to upholding the highest standards of integrity, transparency and

accountability to win the confidence of consumers, shareholders, employees, suppliers, distributors, the local community and other stakeholders. The Company is aware of the significance of maintaining a strong corporate governance model and consistent efforts are made to achieve this goal.

Internal control systems and their adequacy

Internal controls and procedures at LT Foods are well-established and in line with the scale and nature of the Companys operations. To ensure that established procedures are followed, the Company regularly conducts internal audits of its operations, facilities and stockyards. Internal audit reports are examined by the Audit Committee which also evaluates the efficiency of the internal control systems. The Committee may then recommend to the Board of Directors those adjustments be made to the Companys internal controls, business procedures and management systems. Internal auditors may suggest changes for the Companys internal team to work on. The

1 VI

creation of annual internal audit plans is a joint effort between our internal auditors and the Audit Committee.

Cautionary statement

Statements in this Management Discussion and Analysis report describing the Companys objectives, projections, estimates, expectations, or predictions may be considered forward-looking statements under applicable laws and regulations.

These assertions are based on certain assumptions and projections of future events. Because the Companys operations are influenced by many external and internal factors beyond its control, actual results may differ materially from those expressed or implied. The Company makes no commitment to publicly amend, modify, or revise any forward-looking statements in light of subsequent developments, information or events. Readers should be aware that the risks described here are not exhaustive. Readers are encouraged to use their best judgement when assessing the risks associated with the Company.