MANAGEMENT
ECONOMIC REVIEW Global Economy 1
The global economy expanded at a moderate pace in CY2025, driven by resilient consumer spending, public infrastructure investments and stable labour markets across major economies. Global GDP grew at approximately 3.5% during this period, despite persistent geopolitical tensions and evolving international trade policies. 2 Global headline inflation moderated to 4.1% in CY2025 from 5.8% in CY2024, reflecting the cumulative impact of monetary tightening across economies and moderation in price pressures across several sectors.
However, inflationary risks resurfaced towards the end of the year amid rising geopolitical tensions, energy market volatility and disruptions to key trade and shipping routes. Elevated interest rates, tighter financial conditions and trade-related uncertainties also continued to weigh on investment activity and business sentiment across developed markets.
Economic growth trends remained uneven across regions. Advanced economies recorded slower growth of around 1.9%, as elevated interest rates and tighter financial conditions weighed on consumption and investment activity across the United States and the Euro Area. Emerging markets and developing economies expanded at a stronger pace of approximately 4.5%, driven by domestic demand, infrastructure investments and improving manufacturing activity, continuing to contribute a larger share to global growth.
Global trade activity witnessed temporary support during the year due to front-loaded shipments ahead of anticipated tariff increases and trade restrictions. However, trade policy uncertainty increased again during early CY2026 following tariff-related developments in the United States, while escalating geopolitical tensions in West Asia disrupted critical energy and shipping routes, including the Strait of Hormuz. These developments resulted in increased volatility across crude oil, gas and commodity markets, while also heightening concerns around supply chain disruptions and global financial conditions.
Against this backdrop, economies across the world increasingly focused on strengthening domestic manufacturing capabilities, diversifying supply chains, enhancing energy and food security and expanding strategic trade partnerships to improve long-term economic resilience amid a changing geopolitical and trade environment.
Regional Focus
USA
The US economy remained resilient during CY2025, supported by healthy consumer spending, stable employment conditions and easing inflationary pressures. Household consumption continued to support economic activity despite elevated borrowing costs and tighter financial conditions. However, evolving trade policies, tariff-related developments and shifts in global supply chains created uncertainty for businesses engaged in international trade.
Europe
Europe experienced a gradual recovery during CY2025 as inflation moderated and consumer confidence improved across several markets. However, economic activity remained affected by weak industrial output, subdued external demand and elevated energy costs. Geopolitical developments and trade-related uncertainties continued to influence business sentiment and investment decisions across the region.
Middle East
The Middle East maintained steady economic momentum supported by investments in infrastructure, tourism, retail and other nonoil sectors. Consumer spending remained resilient across several markets, aided by urbanisation, population growth and rising disposable incomes. At the same time, geopolitical tensions in West Asia and disruptions across key shipping corridors contributed to volatility in energy, freight and commodity markets. Nevertheless, the region continued to benefit from strong consumption trends, expanding retail networks and sustained investments aimed at diversifying economic activity beyond hydrocarbons.
Outlook
The global economic outlook remains moderate, with growth projected at around 3.0% in CY2026 and 3.4% in CY2027. While economic activity is expected to remain supported by resilient domestic demand across emerging markets and a gradual easing of financial conditions, growth across major economies is likely to remain below long-term historical averages amid persistent geopolitical and trade-related uncertainties.
Global inflation is projected to pause its recent decline and increase from 4.1% in CY2025 to 4.4% in CY2026 before moderating to 3.7% in CY2027, due to higher energy and food prices as well as ongoing supply-side pressures.
Central banks are expected to maintain a cautious approach as they balance inflation management with the need to support economic growth and financial stability.
The outlook remains sensitive to developments in West Asia, evolving trade policies and volatility across energy and commodity markets. Prolonged disruptions to trade routes, escalation of geopolitical tensions or renewed inflationary pressures could affect global trade flows, investment activity and consumer demand. Emerging and developing economies are expected to remain the primary drivers of global growth, supported by domestic consumption, infrastructure investments and industrial development, although they remain vulnerable to external shocks and financial market volatility.
Indian Economy
India remained among the fastest- growing major economies in FY2026, supported by strong economic fundamentals, robust household spending and healthy capital formation. According to the Provisional Estimates released by MoSPI, real Gross Domestic Product (GDP) growth is estimated at 7.7%, following growth rates of 7.1% in FY2025 and 7.2% in FY2024. Economic activity was driven by broad-based expansion across manufacturing, services and investment-led sectors, with Private Final Consumption Expenditure and Gross Fixed Capital Formation both registering growth of over 9%. 3
Inflation remained largely within a comfortable range during most of the year, aided by favourable supply conditions and easing food prices, although some upward pressure emerged towards the close of FY2026 due to food and energy- related factors. The moderation in inflation helped preserve household purchasing power and provided a conducive environment for consumption across urban and rural markets.
Macroeconomic fundamentals remained stable, supported by healthy financial sector conditions, robust tax collections and continued policy support. The Reserve Bank of India reduced the repo rate by 125 basis points since February 2025 to support liquidity, credit growth and consumption. 4 Policy measures, including income tax relief, Goods and Services Tax (GST) rationalisation and labour reforms, continued to support consumption, formalisation and ease of doing business. However, global trade uncertainties and geopolitical developments, particularly in West Asia, may impact India through energy prices, trade flows and financial conditions.
Indias GDP Growth
(%)
FRE- First Revised Estimates, PE- Provisional Estimates
Source: MoSPI Provisional Estimates FY2026
3 https://www.mospi.gov.in/uploads/latestReleases/latest_release_1780655857536_5ac01869-ca4a-422d-b7a7-57b81da60932_Press_Note_on_GDP_
Estimates_for_Q4_2025-26_and_PE_FY_2025-26_F.pdf
4 https://rbidocs.rbi.org.in/rdocs/Bulletin/PDFs/0BULT23042026FL5A726E38FAF84453B435F18A3709DD11.PDF
Outlook
Indias economic outlook remains favourable, supported by strong domestic demand, sustained infrastructure investments and continued policy support. According to the Reserve Bank of India, real GDP growth is projected at around 6.6% in FY2027, with private consumption and investment activity expected to remain key growth drivers. 5 The impact of income tax relief measures announced in the Union Budget 2026-27, improving rural demand, healthy labour market conditions and easing financial conditions, are expected to support household spending and economic activity. Growth is also expected to benefit from continued government focus on manufacturing, infrastructure development, logistics efficiency and ease of doing business.
There are also concerns regarding the possible emergence of El Nino conditions during the monsoon season, which could affect rainfall distribution across parts of the country. A weaker and uneven monsoon may impact agricultural output and rural demand while also exerting pressure on food prices and consumption activity across agriculture- dependent sectors in the near term. Global trade disruptions, weaker external demand conditions and prolonged geopolitical instability may also affect export growth, investment flows and financial market stability.
However, Indias relatively strong macroeconomic fundamentals, improving infrastructure ecosystem, digital transformation, policy reforms and manufacturing competitiveness are expected to support steady economic growth and resilience amid an evolving global economic environment.
FMCG INDUSTRY Global
Shifting consumer lifestyles, evolving consumption habits and macroeconomic volatility are actively reshaping the global Fast-Moving Consumer Goods (FMCG) landscape. Consumers are increasingly deliberate in their purchasing decisions, expecting a careful balance between affordability and uncompromising standards in product quality, convenience, health and brand trust.
Concurrently, geopolitical tensions, trade policy shifts and supply chain disruptions are influencing business strategies across industries. Despite these challenges, the essential nature of FMCG products continues to support demand, with global FMCG retail sales estimated to surpass USD 8 trillion by 2029, with a projected compound annual growth rate (CAGR) of 5% during 2025-2029. 6
5 https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=62863
6 https://go.euromonitor.com/rs/805-KOK-719/images/Euromonitor-FMCGOutlook-25ed.pdf?mkt_tok=ODA1LUtPSy03MTkAAAGiIkp-J2YLx4OZ9GamQAG0Lkq
dYgpr4XRwNQL00pc9OfIrDiIdLakB7JerUTAoLtt3DyUsMHocCl3LoQjRkrClcwIvlTn_yANQuu2qd819-T7SI6KmzQ
Source: Euromonitor
Food and beverage categories remain primary drivers of the FMCG sector, fuelled by evolving dietary patterns, rapid urbanisation and the growing consumer demand for both convenience and nutritional quality. Additionally, increasing workforce participation, shifting household demographics and time-constrained lifestyles continue to accelerate the adoption of packaged foods and convenient meal solutions across target markets.
Health and wellness considerations, together with premiumisation, are exerting greater influence on food consumption patterns. Consumers are increasingly seeking products that combine superior quality with natural ingredients, minimal processing, clean- label formulations and clear ingredient transparency. This shift is encouraging food companies to introduce differentiated offerings that address evolving expectations around nutrition, authenticity, convenience and overall
well-being. Growing emphasis on healthier lifestyles, simplicity and comfort is encouraging food companies to introduce differentiated offerings that combine nutrition, convenience and quality. Consumer demand is rapidly shifting towards premium food experiences, authentic cuisines and products with clear provenance across both developed and emerging markets.
Rice remains one of the worlds most important staple foods, supporting food security and daily nutrition across a large share of the global population. Global rice consumption and residual use is projected at approximately 541.4 million metric tonnes in 2026/27, while global rice trade is expected to reach 63.1 million metric tonnes, reflecting sustained demand across both producing and importing regions. 7 Within the broader global rice market, Basmati represents a rapidly expanding premium aromatic
category. The global Basmati rice market was valued at approximately USD 14.59 billion in 2025 and is estimated to reach USD 16.36 billion in 2026. It is projected to expand to USD 25.96 billion by 2030, growing at a CAGR of 12.2%. Growth is being driven by rising exports from India, increasing consumer preference for aromatic and premium packaged rice, expansion of online grocery channels and a growing emphasis on product authenticity and certification. Demand for traceable and authenticated Basmati, branded packaging, value-added processing and organic and sustainably cultivated varieties is also shaping the categorys development. 7 8
Rising multicultural populations, increasing popularity of international cuisines and growing preference for authentic food experiences are supporting demand for speciality rice varieties across global markets. This trend is also evident in the United States, where imports of aromatic long-grain rice, including Basmati, remained strong through March 2026. The outlook for sustained imports in 2026/27 points to a broader shift in consumer preference towards premium and differentiated rice varieties. Demand growth across regions such as North America,
Europe, Africa and Southeast Asia is further expanding opportunities for premium and differentiated rice offerings. Interest in organic, value-added and differentiated grain products is also gaining traction as consumers place greater emphasis on food quality, nutrition, convenience and sustainability, supporting the evolution of the global rice market beyond traditional staple consumption.
Convenience-led consumption is emerging as another defining trend within the food industry. The global convenience food market was valued at approximately USD 537.9 billion in 2025 and is projected to reach USD 833.8 billion by 2034, growing at a CAGR of 4.99%. 9 Urban lifestyles, increasing workforce participation and changing household structures are strengthening demand for Ready-to- Cook (RTC), Ready-to-Eat (RTE) and other value-added meal solutions that offer ease of preparation without compromising on taste or nutrition. Digital commerce, quick commerce and omnichannel retail platforms are further expanding product accessibility and influencing purchasing behaviour across categories, creating new growth opportunities across the global FMCG landscape.
7 https://ers.usda.gov/sites/default/files/Jaserfiche/outlooks/114145/RCS-26D.pdf?v=40242
8 https://www.researchandmarkets.com/report/basmati-rice?srsltid=AfmBOorO_VzhFMe0Du9yHQ82UF18_W1MzmCQ74jJPjHJa0BwEvE8q8Kp
9 https://www.imarcgroup.com/convenience-food-market
India
Indias rapid emergence as a premier consumer market is fundamentally reshaping the food and FMCG landscape. Rising disposable incomes, an expanding middle class, rapid urbanisation and improving digital connectivity are strengthening consumption across categories, while increasing aspirations are influencing purchasing decisions.
The Indian FMCG market was valued at approximately USD 287.9 billion in 2025 and is projected to reach USD 1,150.2 billion by 2034, supported by favourable demographics, growing brand consciousness and expanding access to organised retail channels. 10 Urban consumption remains a key growth driver, while improving connectivity and rising incomes are creating new opportunities across smaller towns and rural markets. quick commerce platforms is further enhancing product accessibility and accelerating the shift towards organised food categories. At the same time, premiumisation and health-conscious consumption are gaining momentum, supporting demand for differentiated, organic and convenience-oriented food products across the country.
Packaged Food Market
The packaged food category is emerging as a key growth driver within Indias food ecosystem, supported by rising urbanisation, increasing disposable incomes and changing consumer lifestyles. The changing consumer preference towards convenience, consistency and food safety is driving a higher adoption of branded and hygienically packaged products. Furthermore, the rapid expansion of modern retail, e-commerce and quick commerce platforms is further enhancing product accessibility across urban and semi-urban markets. The Indian packaged food market was valued at approximately USD 129.18 billion in 2025 and is projected to reach USD 238.83 billion by 2034, reflecting sustained demand for convenience- led and value-added food products. 11
Source: IMARC
Consumers are increasingly gravitating towards branded, hygienically packaged and quality- assured products in the food segment. Growing awareness around food safety, nutrition and product premiumisation, coupled with changing household structures and busier lifestyles, is driving demand for convenient and value- added food offerings across global markets. The rapid expansion of modern trade, e-commerce and
Indian Packaged Rice Market
Rice remains one of the most important categories within Indias packaged food landscape, supported by its integral role in household consumption. A growing preference for branded food staples is shifting consumer focus from loose and unbranded rice towards packaged alternatives that offer assured quality, standardised grading, traceability and hygienic packaging. Rising awareness around food safety, consistency and product premiumisation is strengthening demand for branded rice products across consumer segments.
Indias packaged rice market reached approximately 13.68 million tonnes in 2025 and is projected to grow to 21.09 million tonnes by 2034. 12 Growth is being supported by rapid urbanisation, rising disposable incomes and evolving consumer preferences. Within the Indian market, nearly 70% of rice consumption continues to take place through loose and unbranded channels, while branded and packaged rice accounts for around 30%, highlighting significant headroom for organised players as consumers increasingly shift towards quality-assured and hygienically packaged products.
10 https://www.imarcgroup.com/india-fmcg-market
11 https://www.imarcgroup.com/india-packaged-food-market https://www.imarcgroup.com/india-fmcg-market
12 https://www.imarcgroup.com/india-packaged-rice-market
Organic Food Market
The organic food category is experiencing accelerated growth as consumers increasingly seek greater transparency, traceability and authenticity in their food choices. Growing preference for clean-label products, sustainable farming practices and certified organic offerings is driving demand across categories. The organic food market is estimated at approximately USD 364.09 billion in 2026 and is projected to reach USD 647.73 billion by 2030, growing at a CAGR of 15.5%. 13
Market demand is increasingly supported by changing consumer buying behaviour. Consumers are demonstrating greater awareness regarding the origins of their food with a rising preference for natural and environmentally responsible products. Expanding availability through organised retail, e-commerce and specialised organic channels is improving accessibility across markets, while stronger certification and traceability frameworks are enhancing consumer confidence. Growing adoption of organic cereals, grains and value- added food products is expected to support the long-term growth outlook of the category.
Urban households and younger consumers are increasingly seeking products that combine convenience, quality and nutrition, driving demand for premium rice varieties, low-GI offerings, organic rice and Ready-to-Cook (RTC) solutions. Growing preference for hygienically packaged, quality-assured and easy-to-prepare food products is further supporting the expansion of branded packaged rice across the country. Basmati rice accounted for over 51% of the packaged rice market in 2025, reflecting strong demand for premium and differentiated rice offerings.
India Packaged Rice Market
Evolving Consumption Patterns and Lifestyle Shifts
Rising urbanisation, smaller household sizes, increasing workforce participation and busier lifestyles are reshaping food consumption habits. Consumers are increasingly seeking products that combine convenience, consistency and quality, supporting demand across packaged foods, Ready-to-Cook (RTC) solutions, premium staples and value-added food categories.
GROWTH DRIVERS
Digital Commerce Reshaping Food Distribution
The rapid expansion of e-commerce, quick commerce and digital retail ecosystems is transforming how consumers discover and purchase food products. Improved accessibility, wider assortment availability and faster delivery models are expanding the reach of branded food products beyond traditional urban markets and enabling deeper market penetration across emerging consumption centres.
Growing Preference for Premium and Differentiated Offerings
Consumer demand is increasingly moving beyond basic staples towards differentiated products offering superior quality, convenience, nutrition and unique attributes. Premium rice varieties, organic products, clean-label foods, speciality grains and convenience- oriented formats are benefiting from changing preferences and increasing willingness among consumers to spend on value-added offerings.
13 https://www.researchandmarkets.com/reports/5939781/organic-food-market-report?srsltid=AfmBOorztyG5-UH6hGVCZ0-bXuA9LdnRwWgXobjKCR3k0S8h
Expansion of Food Processing and Value-added Food Ecosystems
Investments in food processing infrastructure, cold-chain networks, warehousing and supply-chain capabilities are improving product availability, shelf life and distribution efficiency. Government initiatives supporting food processing and manufacturing are also facilitating the development of value-added food categories and strengthening the organised food ecosystem.
Rising Demand for Transparency and Product Premiumisation
Consumers are increasingly paying attention to product origin, sourcing practices, ingredient transparency and certification standards. This shift is strengthening demand for branded, traceable and certified food products across categories, while supporting the growth of organic, clean-label and quality- assured offerings.
LT FOODS POSITIONED AT THE INTERSECTION OF POWERFUL FOOD CONSUMPTION TRENDS
The global food industry is undergoing one of its most significant transformations, driven by premiumisation, health and wellness, convenience-led consumption, sustainability and growing demand for authentic global cuisines. These structural trends are creating attractive long-term opportunities for companies with strong brands, differentiated capabilities and the ability to evolve with consumer preferences. LT Foods is strategically positioned at the convergence of these powerful trends through its portfolio of trusted brands, integrated business model and expanding participation across high- growth food categories.
WHY LT FOODS IS POSITIONED TO WIN
Leadership in Attractive and Growing Categories
The Basmati and Other Specialty Rice category remains highly attractive for LT Foods due to growing global demand for premium, branded and authentic food products.
Rising consumer preference for quality, traceability and premium food experiences is driving strong category growth across India, North America, Europe and the Middle East. With market-leading brands such as DAAWAT®, Royal® and Golden Star®, a strong farm-to-fork
value chain and presence in over 85 countries, LT Foods is well positioned to benefit from premiumisation trends and expanding consumption of specialty rice worldwide.
Capturing Structural Consumer Trends
The Company is increasingly participating beyond traditional rice consumption through organic foods, Ready-to-Eat (RTE), Ready- to-Cook (RTC) and Ready-to-Heat (RTH) and other convenience-led food categories. These businesses are aligned with some of the fastest-growing food consumption trends globally, including wellness, sustainability and convenience- driven lifestyles.
Strong Portfolio of Trusted Consumer Brands
Over decades, LT Foods has built a portfolio of trusted brands with strong consumer relevance across multiple geographies. DAAWAT®, Royal®, Golden Star®, Heritage,
Ecolife and Kari Kari provide access to diverse consumer segments, consumption occasions and growth opportunities while creating a strong platform for innovation and premiumisation.
Integrated Farm-to-Fork Competitive Advantage
The Companys integrated sourcing, ageing, processing, manufacturing and distribution
Expanding Consumption Base
Indias young population, growing middle-income households and rising discretionary spending continue to expand the countrys consumption base. Increasing purchasing power and aspirations are driving demand across food categories and creating a favourable environment for organised players to introduce innovative and premium products. ecosystem enables superior quality, traceability, consistency and supply-chain resilience. Longstanding farmer relationships, sustainable sourcing programmes and deep category expertise create competitive advantages that are difficult to replicate.
Global Platform with Multiple Growth Engines
LT Foods serves consumers across more than 85 countries through a diversified business model spanning India, North America, Europe, United Kingdom, Middle East and other international markets. This diversified footprint provides access to both mature and emerging growth markets while reducing dependence on any single geography.
Disciplined Capital Allocation and Financial Strength
The Company combines growth ambitions with prudent capital allocation, disciplined acquisition strategy and a strong balance sheet. Investments are focused on strengthening brands, expanding growth platforms, enhancing operational capabilities and creating sustainable long-term returns while maintaining financial flexibility and resilience.
LT Foods Ltd. is a leading billion-dollar global fast-moving consumer goods (FMCG) company in the consumer food sector. It has been a leading global player in the speciality rice and rice-based foods business for more than 75 years. The Company delivers the finest quality and taste experiences in more than 85 countries across India, United States, United Kingdom, Europe, Middle East, Far East and rest of the world. The Companys flagship brands include DAAWAT ®, one of Indias most loved and consumed basmati brands and Royal®,
North Americas most loved brand, among others. The Company is expanding to address the evolving food preferences of millennials by offering organic foods in global markets and supplying organic food ingredients to leading businesses. The Company is committed to nurturing the goodness of food for people, the community and the planet.
At the heart of this transformation is a portfolio of consumer brands led by DAAWAT®, Royal®, Golden Star, Heritage, Ecolife and Kari Kari, which address diverse consumer needs across premium rice, organic foods, convenience meals and snacking categories. The Company is enhancing its relevance among evolving consumer segments through investments in premium offerings, product innovation and value-added food categories aligned with changing consumption preferences, along with further solidifying its Basmati and speciality rice business.
LT Foods has expanded its presence beyond its traditional strengths in rice through a growing focus on speciality rice, organic foods and adjacent food categories. During the reporting year, the Company strengthened its organic foods platform through Nature Bio Foods entry into the European B2C market, while the acquisition of the remaining stake in Golden Star Trading Inc. enhanced its participation in the Jasmine rice category and strengthened its speciality rice portfolio in North America. position by achieving a 60% share of basmati rice imports. Golden Star has also become the leading brand in the market. The Middle East has emerged as an important growth region, driven by strengthening brand equity, deeper retail presence and expanding participation across premium Basmati rice categories, including Saudi Arabia. A diversified presence across North America, India, Europe, the United Kingdom, the Middle East and other international markets, combined with a growing portfolio of branded and value-added food products, positions LT Foods to capitalise on long-term opportunities across the global food industry.
Supporting this growth is an integrated sourcing, processing, manufacturing, global distribution and sales ecosystem. Longstanding farmer partnerships, advanced processing infrastructure, strategically located facilities, a well- established global supply chain and an extensive distribution network spanning more than 85 countries enable the Company to deliver quality, traceability and consistency across markets.
India remains a key pillar of the Companys growth strategy, supported by strong and much-loved brands, an expanding distribution network, increasing household reach and rising consumer preference for premium packaged food products. Across international markets, the US business has delivered consistent results and further strengthened its
Operational Performance Review
LT Foods operating model is built on an integrated value chain spanning sourcing, manufacturing, processing, distribution and consumer engagement across domestic and international markets.
During the year, LT Foods strengthened key elements of its operating platform through investments in distribution capabilities, manufacturing infrastructure, sustainable sourcing initiatives and digital systems.
These initiatives enhanced supply chain responsiveness, improved operational visibility and supported the Companys growth across speciality rice, organic foods and ingredients and convenience-led food categories.
GROWTH STRATEGY
LT Foods is actively executing a strategic growth plan to strengthen its consumer food platform through portfolio diversification, premiumisation, market expansion and sustainability-led value creation. Leveraging its strong brand portfolio, integrated sourcing ecosystem and global distribution network, the Company is building a scalable and resilient food business across domestic and international markets.
Extending Product Portfolio
The Company is broadening its presence across high-growth food categories beyond speciality rice. Organic foods and ingredients, Ready-to-Eat (RTE), Ready-to-Heat (RTH) and Ready-to-Cook (RTC) products form key pillars of this diversification strategy, complemented by opportunities across convenience foods, health-oriented products and other value-added food categories.
LT Foods is strategically diversifying its global portfolio by expanding into meal solutions, snacking and ethnic food categories. These initiatives create new growth avenues beyond its traditional rice business. The Company aims to capture multiple consumption occasions while meeting consumer demands for convenience, health, premium quality and sustainability.
Enhancing Brand Equity and Premium Offerings
Brand building, product innovation and premiumisation are key drivers of growth. The Company is strengthening the consumer franchise of brands such as DAAWAT®, Royal®, Golden Star, Heritage, Ecolife and Kari Kari through differentiated products, targeted consumer engagement initiatives and category extensions, while increasing the contribution of value-added products within the overall portfolio. Product innovation and premium offerings are expected to support stronger consumer engagement and create additional growth opportunities across markets.
Building a Resilient and Technology- Enabled Value Chain
Sustainability and technology form important pillars of LT Foods longterm growth agenda. The Company is advancing data-driven sourcing capabilities, responsible sourcing practices, climate-smart agriculture initiatives, traceability systems and low- carbon rice cultivation programmes across its sourcing ecosystem. At the same time, investments in digital planning, procurement, warehousing and supply chain management are enhancing visibility, decision-making and operational agility across the organisation. Together, these initiatives are supporting the development of a more resilient, transparent and responsive value chain capable of supporting long-term growth.
Scaling Growth Across India and Global Markets
India remains a strong growth market in its own right, rather than simply a base for international expansion. Rising income levels and increasing brand consciousness are accelerating the structural shift from loose, unbranded rice to packaged, branded alternatives. Branded penetration is still only around 30% of overall consumption, leaving significant headroom for organised players. Branded Basmati rice is increasingly an aspirational purchase for Indian households and LT Foods is capturing this shift through sustained brand-building, targeted marketing campaigns and an expanding omnichannel presence across traditional trade, modern trade, e-commerce and quick commerce. This combination is driving deeper category penetration and steady household acquisition for DAAWAT ®. Our household reach in India expanded by 22.8% over the last 15 months to 64.4 lakhs (Kantar Household Panel, MAT Mar26).
With a market share of 23.7% in India (MAT Mar26; AC Nielsen Retail Audit), this growth is expected to remain a key lever for the Company going forward.
International markets represent a significant growth opportunity for the Company, supported by expanding category participation, investments in local operating capabilities and strengthening consumer brands across key geographies. LT Foods is strengthening its presence across North America, Europe, the United Kingdom, the Middle East and other international markets through wider market access, stronger customer relationships and expansion into new consumer segments. Recent investments across Europe and the United Kingdom, along with the Companys expanding presence in Saudi Arabia, are expected to support market development, strengthen regional capabilities and create additional avenues for long-term growth.
Capital Allocation Framework
LT Foods deploys capital across three ordered priorities: reinvestment in the core business (brand building, manufacturing capacity, including the upcoming Raichur facility and digital and supply-chain infrastructure), disciplined bolt-on acquisitions that strengthen category leadership or geographic reach and consistent shareholder returns, while preserving balance-sheet flexibility. The Company intends to maintain leverage at optimum levels, with Net Debt/EBITDA managed well within 1x through the investment cycle, providing headroom to fund growth without compromising financial resilience. Capital allocation decisions are guided by their expected contribution to the Companys ROCE trajectory, with a bias towards investments that improve portfolio mix and margin quality over pure volume growth.
M&A Stance
LT Foods pursues M&A selectively and as an extension of its longterm portfolio strategy, rather than as a source of inorganic growth for its own sake. The Company focuses on bolt-on acquisitions that strengthen category leadership, expand brand equity, enhance route-to-market capabilities, or add differentiated product platforms across speciality rice, organic foods, health-oriented products and convenience categories. The acquisition of Golden Star Trading Inc. demonstrates this disciplined approach, providing access to the attractive Jasmine rice segment while leveraging LT Foods existing sourcing, distribution and brandbuilding capabilities. Potential acquisitions are evaluated against a clearly defined framework comprising strategic fit, longterm growth potential, margin accretion, ROCE enhancement, integration feasibility and valuation discipline. The Company prioritises opportunities where LT Foods can create incremental value through its global distribution network, integrated farm-to-fork model, consumer insights and operational scale. LT Foods remains focused on bolt-on opportunities, partnerships and strategic alliances across its key markets and will continue to maintain a disciplined approach towards capital deployment, avoiding transactions that materially increase leverage, dilute returns or fall outside its core strategic priorities.
Dividend Policy
LT Foods is committed to a consistent and sustainable dividend policy that balances shareholder returns with the capital required to fund the Companys growth agenda. The Boards approach seeks to grow dividends in line with the Companys earnings trajectory while retaining sufficient capital to fund brand investments, capacity expansion and selective M&A. The Company maintained its commitment to delivering shareholder value and declared a total dividend of C3.00 per equity share for FY2026, consistent with its stated intent of sharing value creation with shareholders as profitability scales alongside the ROCE improvement plan.
Business Segments
Basmati and Other Speciality Rice
Basmati and Speciality Rice remained the cornerstone of LT Foods business during the year, accounting for the largest share of the Companys portfolio across domestic and international markets. Built on decades of expertise in sourcing, ageing, processing and marketing premium rice products, the segment serves consumers across India, North America, Europe, the United Kingdom, the Middle East and other international markets through a portfolio of trusted brands and differentiated offerings. Deep category expertise, established consumer brands and the ability to address evolving consumption preferences across geographies support its strong market position.
During the year, the segment benefited from sustained demand for branded and premium rice products, driven by increasing consumer preference for quality, premiumisation and convenience. Growth was driven by strong performance across key markets, continued premiumisation of the portfolio and focused investments in brand-building and consumer engagement initiatives. Flagship brands including DAAWAT®, Royal®, Golden Star and Heritage have further strengthened its market presence through targeted consumer campaigns, product innovations and category development initiatives. These strategic efforts are specifically tailored to meet evolving consumer preferences across diverse regional markets.
In India, the segment recorded healthy growth across both value and volume, supported by strong momentum in the premium portfolio and increasing household adoption. Consumer brands such as Biryani and Super outperformed the broader consumer business, reflecting growing demand for premium and differentiated offerings. In North America,
Royal® maintained its leadership position in the branded Basmati rice category, while the acquisition of the remaining stake in Golden Star Trading Inc. strengthened the Companys participation in the Jasmine rice segment and broadened its speciality rice portfolio. Supported by strong brand equity, category leadership and a diversified speciality rice portfolio, the segment is well-positioned to benefit from increasing global acceptance of Basmati rice, premiumisation trends and growing demand for branded and quality-assured food products across markets.
India Business
The India business delivered robust growth of over 14% in both value and volume terms during FY2026. Growth was supported by strong momentum across the premium portfolio despite broad-based softening in commodity prices. The speciality consumer brands, Biryani and Super, outpaced overall consumer business growth, indicating strong traction for differentiated and occasion-led offerings. Sustained investments in consumer engagement significantly benefited the business. The rollout of dynamic brand campaigns and market activations bolstered product recall and maintained daily consumption relevance across all key consumer segments
For LT Foods, India remains an essential growth engine driving consumer reach and brand portfolio expansion. The Company has advanced a focused operational agenda. Key priorities include accelerating distribution, deepening investments in brand equity and leveraging the channels of the future. These priorities supported margin expansion through premiumisation, stronger channel partner relationships across traditional and emerging platforms and a stronger foundation for sustained long-term growth.
The Companys India portfolio also gained from the broader shift towards branded, premium and trusted food products. DAAWAT® continued to strengthen its consumer franchise during the year. The increase reflects growing consumer acceptance of branded rice products and the Companys sustained focus on widening household reach across markets.
Strategic product and brand interventions during the year helped deepen consumer connect, while the Companys focus on premiumisation and household reach supported its performance across urban and emerging markets. Supported by its wide distribution reach and strong consumer franchise, India operations remained a key contributor to the branded growth agenda of LT Foods. This success reflects The Companys growing relevance in everyday consumption occasions.
E-commerce emerged as a key growth driver during the year, enabling the Company to access new consumer cohorts while strengthening premium positioning across categories. The channel complemented the resilience of traditional trade and contributed to broader consumer reach across markets.
Sales and distribution infrastructure was further strengthened during FY2026, supporting broader market access, deeper consumer reach and improved channel execution across India. The Companys distribution reach in India stood at 1,400+ distributors, 1,500+ towns and 1,95,000+ outlets, enabling wider availability of its branded portfolio across traditional trade, modern trade and emerging channels. Expansion across Tier II and Tier III markets, alongside wider numeric distribution, further strengthened consumer access and market coverage during the year.
The Company sustained a robust focus on modern trade partners, e-commerce and quick commerce during the year. Consequently, this initiative drove an expansion in market reach and cemented The Companys leadership across a majority of e-commerce and quick commerce platforms. These channels supported stronger consumer access, improved product visibility and better availability for consumers seeking branded and premium food products across key markets.
North America remained the largest international market for LT Foods, supported by the continued strength of the Royal® brand and growing consumer preference for premium, authentic and convenience-oriented food products. The region benefited from sustained demand across both Basmati and Jasmine rice categories, with Royal® maintaining its leadership position in the branded Basmati rice segment and strengthening its presence among mainstream consumers beyond the South Asian diaspora.
During FY2026, the business pursued a focused strategy centred on strengthening its core brands, expanding its premium and value- added rice portfolio and broadening consumer access across channels. Brand-building and consumer engagement initiatives enhanced the relevance of Royal® among mainstream and multicultural consumers, while investments in digital and analytics- led decision-making, customer relationships and supply-chain capabilities improved responsiveness and supported profitable growth. Disciplined cost and working- capital management also helped
the business navigate inflationary pressures, evolving trade policies and logistics volatility.
The business also navigated significant tariff-related volatility in the United States during the year.
LT Foods adopted a calibrated approach combining customer price adjustments, supply-chain optimization and selective absorption of costs to protect long-term consumer relationships and shelf presence. Its established on-ground operations, strong customer partnerships and focus on service continuity enabled the Company to maintain product availability across retail channels while responding progressively to changes in the tariff environment.
A key strategic milestone achieved during the year was the full acquisition of Golden Star Trading Inc. This development strengthens LT Foods position in the Jasmine rice category and expands its speciality rice portfolio in the region. It enhanced the Companys ability to address a wider range of consumer preferences while complementing Royal®s leadership in the Basmati category. Following the acquisition, LT Foods emerged as the leading Jasmine rice brand in the United States, further strengthening its position across speciality rice segments. Golden Stars established presence in Thai Hom Mali rice enabled the Company to participate meaningfully across two important speciality rice categories. The integration also created opportunities to leverage LT Foods distribution network, customer relationships, sourcing capabilities and operating platform across the combined portfolio.
The business continued to benefit from a diversified channel presence spanning retail, club, foodservice, e-commerce and ethnic channels, enabling LT Foods to serve a broad consumer base while reducing dependence on any single channel or customer segment. This multi-channel presence has strengthened market reach, enhanced consumer accessibility and created multiple growth platforms across the region. The Company also widened its presence across mainstream retail and multicultural consumer segments, expanding the addressable market for Royal® and Golden Star.
Supply-chain resilience remained an important strategic priority during the year. The Company strengthened sourcing relationships across India and Thailand, diversified its supplier base and improved inventory and logistics visibility to mitigate risks arising from
geopolitical developments, trade disruptions and commodity volatility. Enhanced supplier qualification, testing at origin and food-safety oversight further protected product quality, authenticity and continuity of supply.
Going forward, the North America business will focus on consolidating Royal ® s leadership in branded Basmati rice and scaling Golden Star across the Jasmine rice category.
The Company intends to expand distribution across mainstream retail, club stores, foodservice, e-commerce, ethnic and multicultural channels while increasing the contribution of premium and value-added rice offerings. It will also continue to evaluate selective acquisitions, sourcing alliances and partnerships that complement the speciality rice portfolio, strengthen capabilities and support sustainable growth across the region.
EUROPE Europe and the UK are currently in an investment phase and the Company remains positive about their longterm potential. It continues to invest in capacity, cost structures and the appropriate channel mix, with these investments expected to support profitability over the medium term. The European operations of LT Foods delivered another year of consistent revenue growth, driven by broader retail distribution, deeper customer relationships and growing sales of premium and speciality food products.
LT Foods strengthened its presence across branded, private-label and business-to-business segments, supported by an expanding operating platform across key European markets. The Company also expanded its presence in the value segment through the launch of Indus Valley, enabling it to address a broader consumer base while maintaining the premium positioning of DAAWAT ® across key markets. Germany and France remain important growth markets within Continental Europe, supported by broader distribution, targeted marketing initiatives and strengthened retailer partnerships.
A significant development during the year was the expansion of Nature Bio Foods European operations through the inauguration of a new facility in
Rotterdam. The facility strengthens the Companys organic foods platform and enhances its ability to serve both industries and consumer markets across Europe. LT Foods further enhanced its operational capabilities by investing in supply chain infrastructure and local processing nodes. This expansion of distribution networks has improved customer responsiveness while building a resilient platform for sustainable long-term growth.
The UK business strengthened its market presence during the year through a balanced mix of branded,
private-label and business-to- business operations. The Company has capitalised on favourable market conditions by increasing its customer outreach, broadening its geographic distribution footprint and strictly enforcing operational efficiencies to optimise costs. LT Foods expanded its reach across retail, foodservice and independent trade channels while leveraging its supply chain capabilities and strong customer relationships to strengthen market position.
The Middle East is a saturated and highly competitive market, where establishing a meaningful presence as a relatively new entrant requires sustained effort. Despite regional shipping disruptions during the year, demand for the Companys products remained resilient, while its e-commerce business attained the number one position in the category. The Company is addressing the market
across multiple price points to expand its reach and is encouraged by the progress achieved so far. The Middle East delivered strong performance during FY2026, supported by stronger consumer engagement, wider market reach and continued investments in brand building. The region recorded strong momentum across the UAE, Kuwait and Qatar, with these markets achieving their highest-ever sales
during the year. LT Foods further strengthened the position of DAAWAT ® through digital-first campaigns, retail activations and culturally relevant marketing initiatives tailored to regional consumer preferences. The Company also entered the Saudi Arabian Mazza rice category during the year, expanding its participation in one of the regions largest Basmati
MIDDLE EAST AND REST OF THE WORLD rice segments and creating additional growth opportunities.
During the year, the Company sharpened its regional strategy by reducing certain non-strategic private-label businesses and placing greater emphasis on building its own branded portfolio. As a result, branded revenue increased during the year, while margins improved. In the UAE,
LT Foods held an approximately 10% share of the premium segment. Saudi Arabia also recorded encouraging progress as the Company expanded its presence across foodservice, wholesale and retail channels and finalised the route-to-market for DAAWAT® in the retail segment. Its regional portfolio is complemented by DAAWAT® Hadeel, which serves the foodservice and HoReCa segment across the Middle East. Investments in infrastructure and a dedicated on-ground team further strengthened the Companys execution capabilities and created a foundation for gradual expansion across the region.
During the year, LT Foods established a new subsidiary, LTF Global Investments LLC, in Dubai, UAE, to serve as the Strategic Management Office (SMO) and International Business Office for the Groups international operations. The new subsidiary supports businesses across the Middle East, the UK, Europe and the United States through strategic services aimed at improving operating efficiencies, strengthening coordination and enhancing governance across international markets.
It also provides strategic support across sourcing and logistics-related activities as the Groups international operations expand across multiple markets. Its location in the United Arab Emirates (UAE) enables closer alignment across key sourcing and demand markets, supports faster decision-making and provides greater proximity to important supply-chain ecosystems. This strengthens market intelligence, supplier engagement and the Groups ability to respond to geopolitical and
supply-chain risks, while supporting the resilience and long-term growth of its international operations.
Beyond the Middle East, markets across the rest of the world, including Africa and the Far East, continued to benefit from growing demand for branded rice products, rising interest in Indian cuisine and the Companys expanding distribution footprint. Key Far East markets such as Australia,
New Zealand, Malaysia, Indonesia and Fiji recorded healthy momentum during the year, supported by stronger brand investments, wider market reach and increasing consumer acceptance of Basmati rice beyond traditional diaspora communities. Growing adoption of modern retail and digital commerce channels, coupled with rising demand for premium and health-oriented food products, further supported market expansion across the region. These initiatives strengthened market presence and supported LT Foods growth across diverse international markets.
Organic Food and Ingredients
Consumer preference for traceable, sustainably sourced and health- oriented food products is reshaping food consumption patterns across global markets. Against this backdrop, LT Foods has built a diversified Organic Food and Ingredients business through Nature Bio Foods (NBF), serving retail, institutional and industry customers across key international markets.
The business has evolved into an important part of the Companys broader food portfolio, providing exposure to high-growth categories aligned with wellness, sustainability and clean-label consumption trends.
During FY2026, the Organic Food and Ingredients segment generated revenue of ?1,016 Crores and contributed approximately 9% of the Companys total revenue. Growth was driven by expanding participation across international markets, increasing demand for organic staples and ingredients and a broader product portfolio catering to both retail and
institutional customers. The business also benefited from rising consumer interest in sustainably sourced food products and greater adoption of organic ingredients across food manufacturing and foodservice channels.
A key milestone for L T Foods during the year was the expansion of its organic subsidiary, Nature Bio Foods, into the European market with a new facility in Rotterdam. This strategic milestone strengthens the Companys foothold in a major organic market and drives its entry into the direct-to-consumer segment. These investments broaden the Companys presence across the organic value chain and create additional growth avenues across retail, institutional and consumer channels.
Nature Bio Foods offers a diversified portfolio comprising organic rice, pulses, oilseeds, superfoods and speciality ingredients catering to evolving consumer preferences across global markets. The business is supported by internationally recognised certifications and quality standards that enable access to leading global retailers, food manufacturers and institutional customers. Growing interest in clean-label products, plant-based nutrition and sustainably produced food ingredients is creating opportunities across both developed and emerging markets. FY2026 brought cost pressures as the Company transitioned its business model from wholesale to consumer packaged goods and expanded its capacity in Europe.
The Company continues to view the organic business as an attractive long-term growth opportunity, with significant headroom across the Americas and the European organic ingredients market. These opportunities are expected to support a more balanced growth and margin profile over time.
RTH, RTE and RTC
Ready-to-Heat (RTH), Ready-to- Eat (RTE) and Ready-to-Cook (RTC) segments form an important part of LT Foods portfolio diversification strategy and reflect the Companys growing presence across convenience-led food categories. Rising urbanisation, busier lifestyles, increasing workforce participation and changing meal consumption habits are driving demand for
high-quality food products that combine convenience with authentic taste. These shifts are creating new opportunities across ready meals, meal kits, instant food solutions and snacking categories.
The portfolio comprises a range of convenience-oriented offerings spanning ready meals, rice-based meal solutions and other value- added food products marketed under brands such as DAAWAT®, Royal® and Kari Kari. Product development is guided by consumer insights, evolving food preferences and growing demand for premium and differentiated food experiences.
The business expanded its presence across existing markets while laying the foundation for future growth through product innovation and category development initiatives. Convenience foods have been identified as a strategic growth area across multiple geographies, including North America, the United Kingdom and India. The Companys regional growth plans include broadening participation across ready meals and snacking food categories.
LT Foods is driving stronger consumer adoption and market accessibility by expanding its multi-channel distribution network across modern retail, e-commerce, quick commerce and foodservice channels. Simultaneously, the Company is capturing growing consumer demand for convenient meal solutions, particularly among working professionals and time- strapped households seeking rapid meal preparation options. In international markets, increasing interest in Indian and ethnic cuisines is creating opportunities for convenience-led products that combine authentic flavours with ease of preparation.
During FY2026, the RTH and RTC segment generated revenue of ?187 Crores. Supported by product innovation, wider market reach and growing consumer acceptance of convenience foods, the segment is expected to play an increasingly important role in LT Foods longterm growth journey.
Brands, Innovation and Category Development
Through a combination of premiumisation, innovation and category expansion, LT Foods is broadening its presence beyond traditional rice categories and building a more diversified consumer food portfolio. DAAWAT® remains the flagship brand in India and one of the most recognised names in the premium basmati rice category. Brand campaigns such as Only Rice November and Im Organic strengthened consumer engagement and enhanced brand visibility across key markets. In North America, Royal® remains the cornerstone of the branded business and enjoys strong consumer acceptance across both ethnic and mainstream households.
DAWAAT ® s positioning as a global brand rooted in authentic Indian heritage strengthens consumer trust and brand differentiation across international markets. Product quality, food safety and traceability remain central to the Companys brand proposition. During the year, LT Foods strengthened supplier verification processes, expanded testing protocols and enhanced quality assurance measures across sourcing and manufacturing operations while maintaining globally recognised food safety standards across key markets.
During the year, LT Foods introduced new products and category extensions across premium, speciality and convenience food segments. Innovations such as Saffron Basmati Rice, the expansion of quick-cooking rice offerings and new convenience-oriented formats reflect the focus on addressing evolving consumer lifestyles while creating differentiated propositions across markets. The introduction of DAAWAT® Im Organic Rice further expanded participation in the health-oriented food segment, addressing growing consumer preference for sustainably cultivated and clean-label products. Future product development initiatives include DAWAAT® Biryani Kits, alongside opportunities across brown rice and other value-added food offerings aligned with evolving consumer preferences. Product development efforts are guided by consumer insights and supported by investments in research, culinary expertise and market intelligence.
Beyond its flagship brands, LT Foods has built a diversified portfolio through brands such as Golden Star, Ecolife and Kari Kari, each serving distinct consumer needs and market segments. Ecolife strengthens participation in the organic foods category, while Kari Kari addresses growing demand for premium snacking products. Kari Kari continued to gain traction during the year, supported by increasing consumer interest in premium snacking formats and differentiated flavour profiles, strengthening the Companys presence in adjacent food categories. This diversified brand architecture enables participation across multiple consumption occasions and consumer cohorts while reducing dependence on any single category. A localisation-led approach across international markets, including adaptations in product formats, pack sizes and consumer communication, helps align offerings with local preferences while preserving brand authenticity.
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Supply Chain and Sourcing
The supply chain and sourcing ecosystem forms the foundation of LT Foods integrated farm-to- fork business model, enabling the delivery of quality, traceability and consistency across global markets. The Company maintains a geographically diversified sourcing network across India and global origins, which ensures supply continuity and procurement flexibility. Furthermore, the Company collaborates directly with farming communities through structured engagement programmes to enhance crop quality, productivity and sustainable agricultural practices. Through Nature Bio Foods, the organic sourcing ecosystem extends across multiple geographies and is supported by traceability-led procurement models, regenerative farming initiatives and long-term farmer relationships.
These programmes promote responsible sourcing while helping strengthen agricultural livelihoods and supply-chain transparency. The sourcing ecosystem is supported by crop intelligence, production forecasting, market analytics and data-driven procurement frameworks that enhance sourcing efficiency,
improve planning accuracy and strengthen decision-making across procurement operations. During the year, the Company further strengthened supply-chain resilience through higher strategic inventory buffers, enhanced logistics visibility and greater diversification across sourcing regions. Data-driven dashboards and monitoring tools improved visibility into potential supply-chain disruptions, enabling proactive intervention and supporting uninterrupted product availability across markets.
The Companys facilities operate under globally recognised quality and food safety standards, including FSSC 22000, BRC and ISO certifications. Within the organic business, products are supported by internationally recognised certifications such as USDA Organic, EU Organic, Bio Suisse, Demeter, Naturland and Fairtrade, enabling access to leading retailers, food manufacturers and institutional customers across global markets.
OPPORTUNITIES AND THREATS
Opportunities
Premiumisation Across Rice
and Food Categories
Consumers across India and international markets are increasingly trading up to premium, branded and differentiated food products. Demand for aged Basmati rice, speciality rice varieties, health- oriented offerings and premium convenience foods is expanding across both mainstream and ethnic consumer segments. LT Foods portfolio of brands, including DAAWAT®, Royal® and Golden Star, alongside its growing range of speciality and value-added products, provides a strong platform to participate in this shift towards higher-value food categories.
Growing Global Acceptance ^ of Basmati and Speciality Rice
Basmati rice is experiencing increasing adoption across global markets, particularly in North America, Europe, the Middle East and the Far East. Growing interest in international cuisines, premium food experiences and authentic ingredients, along with the expanding South Asian diaspora and the wider global adoption of Indian cuisine, is broadening the consumer base beyond traditional diaspora communities and creating new opportunities across mainstream consumer segments. In several Far East markets, increasing awareness of Basmati rice and changing food preferences are supporting category development and market expansion.
LT Foods strong brand equity, established distribution network and presence across more than 85 countries position it well to benefit from the expanding global demand for Basmati and speciality rice products. Indias dominant position in the global Basmati trade provides an additional structural advantage. The Companys investments in brands, sourcing and distribution further strengthen its competitive position across key export markets.
Expansion of Convenience- Led Consumption J
Changing lifestyles, increasing urbanisation, the growth of dualincome households and evolving consumption habits among millennials and Gen Z are creating opportunities across Ready-to-Eat (RTE), Ready-to-Heat (RTH) and Ready-to-Cook (RTC) categories.
The Companys expanding portfolio of meal solutions, convenience products and snacking offerings is aligned with these evolving consumption patterns. The increasing preference for convenient products that combine ease of preparation, quality and authentic flavours provides further headroom for the Companys value-added food portfolio.
Growth of E-commerce and Quick Commerce /
The rapid expansion of e-commerce and quick-commerce platforms is reshaping the way consumers discover and purchase food products across India and international markets. These channels improve product accessibility, support faster adoption of new offerings and create greater visibility for premium and value-added products. LT Foods growing presence across digital retail channels provides an opportunity to reach a wider consumer base and respond more effectively to changing purchase behaviour.
Rising Demand for Organic and Sustainable Food Products y
Consumers are increasingly prioritising traceability, sustainability and clean-label products in their food choices. The global organic foods market continues to expand, supported by growing awareness around health, wellness and responsible sourcing. Through Nature Bio Foods, LT Foods has established an integrated organic platform spanning sourcing, processing and distribution, creating opportunities to participate in
the growing demand for organic ingredients and consumer products across key international markets.
Expansion Across New Geographies and Consumer Segments
The Companys ongoing efforts to strengthen its presence across the Middle East, Europe and North America create opportunities to access new consumer segments and consumption occasions.
The expansion of operations in Saudi Arabia and initiatives to broaden product portfolios beyond core rice categories provide additional avenues for growth. Increasing participation in mainstream retail channels and adjacent food categories further enhances the Companys long-term growth potential.
Indias Transition Towards Branded and Packaged Staples
The shift from loose staples to branded and packaged food products remains a significant opportunity in India. Rising income levels, increasing awareness around food quality and greater preference for trusted brands are accelerating category formalisation. LT Foods, with its strong consumer brands, wide distribution reach and growing presence across Tier II and Tier III markets, is well placed to benefit from this structural transformation in food consumption.
Supportive Agricultural Ecosystem
Government programmes such as PM-KISAN, Pradhan Mantri Fasal Bima Yojana and the National Food Security Mission support farmer incomes, crop protection, productivity enhancement and food security. These initiatives contribute to the resilience of Indias agricultural ecosystem and provide a supportive foundation for the Companys integrated sourcing network and farm-to-fork operating model.
Threats
Climate and Commodity
Price Volatility
Unpredictable weather patterns and climate-related events may affect crop yields, grain quality and raw- material availability. Fluctuations in agricultural commodity prices may also increase procurement costs and place pressure on operating margins. The Company mitigates these risks through diversified sourcing, supplier relationships, inventory planning and disciplined cost management.
Risk Management
LT Foods follows a proactive and structured approach to risk management, with risk assessment and mitigation integrated across its business operations. The Company focuses on identifying, evaluating and addressing potential risks in a timely manner to support its strategic priorities and business objectives.
A robust risk governance framework, comprising the Board of Directors, relevant Committees and functional leadership teams, enables regular monitoring and review of risks across the organisation. This framework helps ensure that emerging risks are identified, assessed and addressed through appropriate mitigation measures and internal control mechanisms.
Through defined governance processes and periodic risk reviews, the Company seeks to maintain preparedness for evolving business challenges and operating conditions. This approach supports informed decision-making and effective management of risks across business functions.
Please refer to page 38 of the Integrated Report for details on the Risks and Concerns pertaining to the business along with their mitigation plan.
Trade Policy, Geopolitical and Supply-Chain Risks
Changes in import tariffs, duties and trade regulations may affect pricing, margins and consumer demand across international markets. Geopolitical tensions and disruptions across important shipping routes may also increase freight costs and delivery timelines. The Company monitors developments across key markets and strengthens supply- chain resilience through alternative logistics routes, inventory planning and close coordination with customers and distributors.
Intense Market Competition and Brand Integrity
The packaged food market is becoming increasingly competitive, with established brands, regional players, private labels, locally grown rice varieties and alternative grains competing for consumer attention. Counterfeit products, misleading labelling and adulteration in unorganised markets may also affect consumer trust. The Company addresses these risks through product innovation, portfolio diversification, traceability and sustained investment in brand equity and consumer engagement.
Financial Overview
FY2026 has been a year of record revenues, driven by strong brand momentum, expanding distribution reach, Golden Star consolidation and partial US tariff pass-through to customers. The Company delivered its highest-ever annual revenue, with EBITDA growing strongly even as the Company accelerated investments in brand, innovation and global infrastructure.
• Revenue grew 26% year-on- year (YoY) to ?11,023 Crores (?8,770 Crores in FY2025), with normalised revenue growth of approximately 19% excluding the impact of US tariff pass-through.
• Gross profit increased to ?3,692 Crores, with normalised gross profit margin of approximately 35.3%, reflecting a slight moderation due to higher input costs (paddy prices rose ~7-8% YoY) and the impact of US tariffs.
• EBITDA rose to ?1,236 Crores with a normalised EBITDA margin of 11.8%, reflecting deliberate
higher brand investments and strategic digitalisation spending.
• Profit After Tax (PAT) stood at ?625 Crores. Margins were affected by the US tariff passthrough effect, higher brand and marketing investments (a twofold increase in India), LT Foods UK being in its investment phase and the organic segment being in a remodelling phase.
• Working capital efficiency improved markedly, with working capital days declining to 176 days from 196 days in FY2025.
• Net debt remains well controlled at a Net Debt/EBITDA ratio of
0.6x and Net Debt/Equity ratio of
0.16x in FY2026.
• ROCE stands at approximately 20%, with management committed to scaling this towards 23%+ over the medium term.
• 5-year revenue CAGR of 18% and PAT CAGR of 17% underscore the sustained long-term value creation track record.
LT Foods Limited
Consolidated Financial Performance
[? in Crores]
| Particulars | FY 2025-26 | FY 2024-25 |
| Revenue (incl. Other Income) | 11,023 | 8,770 |
| Gross Profit | 3,692 | 3,030 |
| EBITDA | 1,236 | 1,067 |
| EBIT | 991 | 881 |
| PBT | 860 | 793 |
| PAT | 625 | 612 |
| EPS | 18.01 | 17.43 |
Key Financial Ratios (Consolidated)
| Particulars | FY 2025-26 | FY 2024-25 | % Change |
| Debtor No. of Days | 28 | 31 | -10% |
| Inventory Turnover | 248 | 277 | -11% |
| Interest Coverage | 7.6 | 10.0 | -24% |
| Current Ratio (in times) | 1.8 | 1.9 | -11% |
| Debt Equity Ratio (in times) | 0.16 | 0.16 | - |
| Net Operating Margin (%) | 6.2% | 7.0% | -11% |
| Operating Profit Margin (%) | 11.8%* | 12.2% | -6% |
| Return on Net Worth (%) | 14.9% | 16.8% | -11% |
*Normalised excluding US tariff pass-through
Company Outlook
Global food consumption patterns are evolving rapidly, driven by increasing preference for premium products, greater focus on health and wellness, rising demand for convenience-led food solutions and growing interest in sustainably sourced products. These structural shifts are creating opportunities across speciality rice, organic foods, convenience products and value-added food categories, aligning closely with LT Foods strategic priorities.
Organic foods, health-focused offerings, convenience products and value-added formats are expected to play a larger role in the portfolio over the coming years, supported by product innovation, category development and deeper consumer engagement across markets. Investments made across sourcing, processing, brand building, product development and market expansion provide a strong platform for the next phase of growth. Recent initiatives across the organic foods business, expansion into new consumer segments and growing acceptance of branded and premium food products create opportunities to scale both existing and emerging categories.
With strong consumer brands, differentiated sourcing capabilities and an integrated farm-to-fork model, LT Foods remains focused on building a broader consumer food business while creating long-term value through innovation, premiumisation and disciplined execution. The Company believes its diversified portfolio and category- led growth approach position it well to benefit from evolving food consumption trends across global markets.
Human Resource
The Companys people strategy focused on building capabilities required to support an evolving and increasingly complex business environment. During FY2026, learning initiatives covered digital, functional and leadership skills through LinkedIn Learning, practical artificial intelligence (AI) workshops, 5S and Kaizen interventions and the Emerging Leader Programme. Leadership development was further strengthened through psychometric assessments, personalised coaching and a structured high-potential framework to improve succession readiness and prepare employees for larger responsibilities.
Talent acquisition remained aligned with the Companys growth priorities, with a balanced mix of campus hiring, early-career recruitment and experienced professionals across critical functions. The Company also initiated an Organisation Effectiveness project to bring greater clarity to roles, responsibilities and career pathways, while supporting internal mobility and future scalability. Employee engagement was strengthened through recognition programmes, leadership interactions, organisation-wide events and AI- enabled HR Ally platform, which helped capture employee feedback and support timely interventions.
Employee wellbeing and inclusion formed an important part of the people agenda. The Company expanded access to healthcare, nutrition and family-support initiatives, while promoting equal opportunity through flexible policies, parenting support and a robust Prevention of Sexual Harassment (POSH) framework. It also reviewed its people policies and practices to assess readiness for the implementation of Indias new labour codes and strengthen responsible employment and compliance practices.
2800+
Number of people employed as of 31st March, 2026
Please refer page 96 of the Integrated Report for more details on Human Capital.
Information Technology/Digital Transformation
Information technology is an integral part of LT Foods operating model, supporting decision-making, planning and execution across sourcing, manufacturing, supply chain and market-facing functions. As the business expands across geographies, product categories and channels, digital systems play an increasingly important role in improving visibility, coordination and operational efficiency across the organisation.
During FY2026, the Company strengthened its digital capabilities through wider adoption of automation, artificial intelligence and integrated technology platforms. Digital procurement engines, supplier collaboration platforms and an ERP-integrated farmer database improved sourcing visibility, traceability and procurement planning. AI-enabled demandplanning tools supported forecasting and inventory optimisation, while SAP-integrated platforms and digital transportation systems enhanced visibility across logistics, order planning, shipment tracking and freight settlement.
Technology adoption also strengthened sales execution, financial controls and management reporting. The deployment of an Al-enabled Sales Force Automation platform, supported by the Distributor Management System and consumer-facing portals, improved distributor and retailer engagement and facilitated more informed field-level planning. Real-time dashboards, SAP-based analytics and digital controls enhanced performance visibility, costing, profitability analysis and compliance monitoring across functions. The Company also advanced digital traceability through SAP-based tracking, QR-enabled systems and digitised procurement and quality records.
Alongside these initiatives, the Company strengthened its approach to data governance, cybersecurity and privacy. Master Data Management and Master Data Governance platforms are being deployed to improve data quality and consistency, while policies and controls are being aligned with ISO 27001 and applicable privacy regulations, including the Digital Personal Data Protection Act,
GDPR and CCPA. Regular control reviews, access-management protocols, encryption and monitoring mechanisms support a secure, compliant and resilient digital environment.
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 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.
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