{"id":181530,"date":"2026-04-01T20:50:33","date_gmt":"2026-04-02T00:50:33","guid":{"rendered":"https:\/\/alphastreet.com\/india\/lt-foods-ltd-ltfoods-q3-2026-earnings-call-transcript\/"},"modified":"2026-04-01T20:50:33","modified_gmt":"2026-04-02T00:50:33","slug":"lt-foods-ltd-ltfoods-q3-2026-earnings-call-transcript","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/lt-foods-ltd-ltfoods-q3-2026-earnings-call-transcript\/","title":{"rendered":"LT Foods Ltd (LTFOODS) Q3 2026 Earnings Call Transcript"},"content":{"rendered":"

LT Foods Ltd (NSE: LTFOODS) Q3 2026 Earnings Call dated Jan. 30, 2026<\/span><\/strong><\/p>\n

Corporate Participants:<\/h2>\n

Monika Chawla Jaggia<\/strong> \u2014 Chief Corporate Development Officer<\/em><\/p>\n

Ashwani Kumar Arora<\/strong> \u2014 Managing Director and Chief Executive Officer<\/em><\/p>\n

Sachin Gupta<\/strong> \u2014 Chief Financial Officer<\/em><\/p>\n

Rohan Grover<\/strong> \u2014 Chief Executive Officer Nature Bio Foods<\/em><\/p>\n

Analysts:<\/h2>\n

Meet Jain<\/strong> \u2014 Analyst<\/em><\/p>\n

Pradyumna Choudhary<\/strong> \u2014 Analyst<\/em><\/p>\n

Amit Doshi<\/strong> \u2014 Analyst<\/em><\/p>\n

Abhishek Maheshwari<\/strong> \u2014 Analyst<\/em><\/p>\n

Abhishek Mathur<\/strong> \u2014 Analyst<\/em><\/p>\n

Rehan Saiyyed<\/strong> \u2014 Analyst<\/em><\/p>\n

Pranav Bhootra<\/strong> \u2014 Analyst<\/em><\/p>\n

Damodaran Narayanan<\/strong> \u2014 Analyst<\/em><\/p>\n

Vipulkumar Shah<\/strong> \u2014 Analyst<\/em><\/p>\n

Rajesh Agarwal<\/strong> \u2014 Analyst<\/em><\/p>\n

Harsh Shah<\/strong> \u2014 Analyst<\/em><\/p>\n

Chirag Singhal<\/strong> \u2014 Analyst<\/em><\/p>\n

Ankur Arora<\/strong> \u2014 Analyst<\/em><\/p>\n

Unidentified Participant<\/strong><\/p>\n

Presentation:<\/h2>\n

Operator<\/strong><\/p>\n

Ladies and gentlemen, good day and welcome to LT Foods Q3 FY ’26 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded.<\/p>\n

I now hand the conference over to Mr. Meet Jain from Motilal Oswal Financial Services Limited. Thank you, and over to you, sir.<\/p>\n

Meet Jain<\/strong> \u2014 Analyst<\/em><\/p>\n

Thank you. Good afternoon, everyone, and a warm welcome to LT Foods Limited 3Q FY ’26 Post Results Earning Call hosted by Motilal Oswal Financial Services Limited. On the call today, we have the management team being represented by Mr. Ashwani Kumar Arora, MD and CEO; Mr. Sachin Gupta CFO; Ms. Monika Chawla Jaggia, Chief Corporate Development Officer.<\/p>\n

We will begin the call with the key thoughts from the management team. Thereafter, we will open the floor for Q&A session. I would now like to request the management to share their perspective on the performance of the company. Thank you. And over to you, ma’am.<\/p>\n

Monika Chawla Jaggia<\/strong> \u2014 Chief Corporate Development Officer<\/em><\/p>\n

Thank you, Meet, for the introduction. Good afternoon, everyone, and welcome you all to our nine months quarter three financial year ’26 earnings call of LT Foods Limited. Please note that any statement made or discussed during this call, which reflects our outlook for the future or which could be construed as a forward-looking statement must be reviewed in conjunction with the risks that the company faces.<\/p>\n

A detailed disclaimer in this regard has been included in the investor presentation that has been shared on both the stock exchanges that is NSE and BSE. The result documents are available on our company’s website as well as stock exchanges. A transcript of this call will also be made available on the investors section of the company’s website.<\/p>\n

I would like to share the key highlights of this period that is during nine months financial year ’26, the LT Foods reported a record nine month revenue of INR8,085 crores, year-on-year growth of 24%, normalized growth of 12% excluding U.S. tariff and Golden Star. The company reported an EBITDA of INR936 crores that is year-on-year growth of 20% as compared to nine months financial year ’25. During quarter three financial year ’26, LT Foods achieved its highest ever quarterly revenue of INR2,812 crores, that is year-on-year growth of 23%, normalized growth of 8% excluding U.S. tariff and Golden Star.<\/p>\n

The company reported EBITDA of INR317 crores, that is year-on-year growth of 20% as compared to Q3 financial year ’25. The positive financial performance reflects the company’s strong brand equity developed over time, disciplined brand investments, widening market penetration across segments and geographies, increased consumer preferences for LT brands and ongoing improvements in our distribution efficiency. On the profitability front, the company reported an EBITDA margin of 11.6% in nine months down 30 basis points from 11.9% in nine months financial year ’25, primarily due to increased brand investments, certain strategic initiatives including digitalization initiatives.<\/p>\n

I would like to provide an update on the CVD duty concerning Ecopure Specialities Limited, a fellow subsidiary of LT Foods. A public hearing was conducted on September 16th, 2025 where both the parties presented their argument before the U.S. Government’s Department of Commerce. The final determination was earlier expected by November 17th, 2025. However, due to U.S. government shutdown, the timelines have been further extended, and is now expected by February 17, 2026.<\/p>\n

An update on our Basmati [Indecipherable] is that at the beginning of the season crop 2025 was expected to follow a steady production trajectory with early estimates indicating marginal growth over last year. However, based on harvesting progress and field assessments, palm yields have fallen short of earlier projections across several major production states. The impact of yield moderation has translated into overall Basmati production being lower than the earlier estimates with five stable acreage.<\/p>\n

The decline is primarily yield-driven rather than area-led reflecting weather-related disruptions during the sensitive crop phases. As a result, the market environment for crop 2025 indicated higher price levels. With regard to our acquisition of Hungary-based Global Green Group, Ministry of National Economy, Hungary has not approved the proposed acquisition on grounds of identified national, economical, and sectoral risks.<\/p>\n

Now, let me share segment-wise updates with you. The Basmati and other specialty rice business delivered a 26% year-on-year growth in nine months, normalized growth of 12% excluding the impact of U.S. tariff and Golden Star. This segment, which contributes around 88% of the consolidated revenues, continues to deliver double-digit growth, supported by strong and deeply entrenched brand presence across geographies and sustained marketing investments driving higher brand penetration among consumers globally.<\/p>\n

The organics segment delivered a 15% year-on-year growth in the nine months financial year ’26, reflecting the rising global demand for sustained food choices and our strong presence across key international markets. The Ready-to-Heat and Ready-to-Cook segment delivered a 4% year-on-year growth in nine months financial year ’26.<\/p>\n

Now, let me share with you our geography-wise update. North America comprises 46% of LT Foods revenue and remains to be a key growth driver with normalized growth of 12% excluding the impact of U.S. tariff and Golden Star. Our flagship brand Royal holds a dominant position with 60% share in the Basmati rice segment. Golden Star has continued to be number one Jasmine rice brand in the region. The company has undertaken sustained brand investments in the U.S. including higher media and digital spend, in-store activations, expanded shelf visibility, targeted promotions and consumer engagement initiatives aimed at strengthening brand recall and driving conversion across core and emerging consumer cohorts.<\/p>\n

Looking ahead, we may see impact on consumer demand due to increased Basmati rice prices and input costs. India contributes approximately 29% of the company’s revenue and delivered a 10% year-on-year growth, reflecting strong underlying performance in the domestic market. Our brands collectively hold a 23.5% market share. In India, the household reach of DAAWAT has grown significantly from 45.56 lakh homes in March 2023 to 58.11 lakh homes in September 2025.<\/p>\n

As per industry research, the Indian consumer demonstrates openness to experimentation, while retaining strong habitual purchasing behavior. Although 57% indicate a willingness to try new brands, nearly 84% ultimately purchase familiar or previously used brands, underscoring the critical role of brand strength and point of purchase influence in driving final consumer choice.<\/p>\n

Europe, comprised of 60% of consolidated revenue, our progress in this region has been robust, achieving 35% year-on-year growth. The Middle East and Rest of the World constitutes the remaining 9% of our revenue. Of this, INR35 crore is a branded revenue from Saudi Arabia. We are strengthening our presence in the region through investments in infrastructure and by building a dedicated on-ground team including a hiring of experienced professionals in this space.<\/p>\n

With this, I would now like to hand over the call to the moderator to open the floor for question-and-answer. Thank you.<\/p>\n

Questions and Answers:<\/h2>\n

Operator<\/strong><\/p>\n

Thank you very much. [Operator Instructions] The first question is from the line of Pradyumna Choudhary from JM Financial Group Investments. Please go ahead.<\/p>\n

Pradyumna Choudhary<\/strong><\/p>\n

Yes. Hi team. Thank you for the opportunity. My first question is on the tariffs. Could you explain what really is happening on our front? How much of it we’ve been able to pass on to the end customer until now? And what would be our pricing strategy going forward? And what exactly is the situation in the U.S. like with the increased tariffs and rising Basmati prices? Are you seeing that locals over there are shifting consumption from Basmati rice to locally grown rice due to the price increase? That’s the first part of the question.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Hi. You have asked two questions. One is on the — any impact on the consumption? And the second is on the duty pass on. So as far as consumption is concerned, January we are seeing a little bit slowdown in the mainstream. But that will be more clear in GFM, because sometimes people buy before the price increase. So I think in this quarter, the things will be more clear that how it is impacting the consumption.<\/p>\n

On the duty side, as you know, you have seen in the result also, majority part of the duty we have passed on. Yes, but having said that, this year the input cost has increased. So normally, we pass on to the consumer. This year we have to see how it goes. How the duty things change in the next six months.<\/p>\n

Pradyumna Choudhary<\/strong><\/p>\n

All right. So most of the tariffs, you’re saying like the current tariffs are 50%. So most of this currently has been passed on is what you’re saying?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

That’s what I said. Yes.<\/p>\n

Pradyumna Choudhary<\/strong><\/p>\n

All right. And in terms of the consumption pattern, what are we really seeing? Are like customers accepting this higher price for our Basmati rice or are we seeing more — higher exports going from Pakistan to U.S.? Or are we seeing locals over there considering more of locally grown rice and shifting away from Basmati rice due to higher prices?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

That’s what I tried to answer. In January month we have seen a little bit slowdown, but that is not the real picture. So January, February, March, this quarter sales will give us a clear trend. That’s the answer.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from the line of Amit Doshi from Care Portfolio Managers Private Limited. Please go ahead.<\/p>\n

Amit Doshi<\/strong><\/p>\n

Hi. Sir, you mentioned that most of the tariff has been passed on, which is 50%, but if I look at the numbers which is mentioned in the presentation of where nine months data has been provided, and which indicates that there is a 26% revenue growth of Basmati and 20% volume growth. So presuming that I mean, 50% tariff, the revenue growth should have been far higher or am I missing something?<\/p>\n

Sachin Gupta<\/strong><\/p>\n

So in the presentation itself, if you see, the normalized growth, if you normalize the U.S. tariff, and yes, because we had acquired Golden Star, this year, the whole of the revenue is getting consolidated. If we normalize that, that both things, our revenue growth in this nine months is 12%. And as regarding the tariff, the 50% tariff, this has been from the August that has been imposed. Previously the tariff was 25% and 10%. It is in the phased manner the tariff has been increased in this nine months from 10%, then 25%, then to the 50%. Currently, it is 50%. And that is also on the imports, the imported value of the goods, not on the sales value. You’re getting me, Amit?<\/p>\n

Amit Doshi<\/strong><\/p>\n

Sachin, I’m just trying to understand, even if I look at your H1 PPT, in that also, the volume growth was 23%, and 24% was the revenue growth. And excluding the Golden Star and U.S. tariff, the normalized growth was 11%.<\/p>\n

Sachin Gupta<\/strong><\/p>\n

Correct.<\/p>\n

Amit Doshi<\/strong><\/p>\n

So presuming this H1 and there’s not much difference between the volume growth figures of H1 and nine months, so for this quarter, which is a full quarter where 50% tariff has been levied. So I mean, going by that, I thought if the 50% tariff has been passed on, the number could have been higher. Only thing that I could not get is, you said the tariff is on the imports, but ultimately we, as LT Foods, send it to our U.S. subsidiary. Correct?<\/p>\n

Sachin Gupta<\/strong><\/p>\n

Correct.<\/p>\n

Amit Doshi<\/strong><\/p>\n

So in the consolidated, ultimately the numbers would include tariff as well, right. Standalone, there is no, but in consol, it would appear to be. Just correct me if I’m going wrong anywhere.<\/p>\n

Sachin Gupta<\/strong><\/p>\n

No, you are right, Amit. But my answer to this is, the tariff is on the import — imported value in the U.S., not on the sales value that we are making on the sales to the third-party. You are right in that sales — the sales from India to the U.S. that gets eliminated, but the tariff is on the imported. So if you look at that, a 50% tariff comes out to be 25% to 26% on the overall sales value, not the 50% increase.<\/p>\n

Amit Doshi<\/strong><\/p>\n

Okay. And how much inventory do we keep it at our U.S. level, U.S. company level?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Roughly two to three months inventory. That is in warehouses. The rest is in the transit.<\/p>\n

Amit Doshi<\/strong><\/p>\n

Okay. Any changes that we have done because maybe we might have been anticipating this U.S. trade deal to be concluded.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

So it depends on so the most important is to make sure that the customer service level is high. So accordingly, we make sure that inventory is maintained. Service level is top most important.<\/p>\n

Amit Doshi<\/strong><\/p>\n

Okay. And you mentioned that the crop is lower this year. So what would be the paddy prices compared to last year? Year-on-year what have been the price rise in the paddy?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Sachin will give you exact number, but depends on variety to variety. Some varieties are at par.<\/p>\n

Amit Doshi<\/strong><\/p>\n

Average will be fine. Just to understand the ballpark general what will be our average…<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

7% to 8% will be, I think, 8% will be consolidated.<\/p>\n

Sachin Gupta<\/strong><\/p>\n

Correct. So the average increase in the prices or if I take my stock levels as on December itself, the average increase in the stock levels of the paddy itself it’s 4.5%, 4% increase that is there. So there are certain…<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

For full year basis, will be…<\/p>\n

Sachin Gupta<\/strong><\/p>\n

Will be, yes. So as Ashwani-ji told, full year basis it will be on the same ranks of 7% to 8% on the consolidated…<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Buying. Buying keeps. We keep buying till March. So this quarter the buying is also very heavy. So on an average — yes.<\/p>\n

Amit Doshi<\/strong><\/p>\n

Okay. Understood. Sir, on our organic business [Speech Overlap]<\/p>\n

Operator<\/strong><\/p>\n

Sorry to interrupt sir, but if you have a follow-up question, please rejoin the queue.<\/p>\n

Amit Doshi<\/strong><\/p>\n

Sure. Okay.<\/p>\n

Operator<\/strong><\/p>\n

Okay, thank you. Thank you. Our next question is from the line of Meet Jain from Motilal Oswal Financial Services Limited. Please go ahead.<\/p>\n

Meet Jain<\/strong><\/p>\n

Hello. Hi. My first question is regarding the organic segment. After very good quarters of growth, we have seen a decline in this quarter, even after we have set up our capacity in Europe. So can you throw some light regarding what led to the decline in revenue this quarter?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

This is about organic business, you’re saying?<\/p>\n

Meet Jain<\/strong><\/p>\n

Yes, sir.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Rohan is on the line who is the CEO of organic business. So Rohan, can you take this question, please? Rohan?<\/p>\n

Rohan Grover<\/strong><\/p>\n

Hello? Can you hear me?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Yes.<\/p>\n

Rohan Grover<\/strong><\/p>\n

Yes. So. Yes, I’ve heard the question. Thank you. So the capacities that we have built in Europe have been built in this year, and they would come into light in the coming years. So we made the right investments for the future. The resources have been deployed. But the sale that you are seeing is not — I think overall on an annual basis, if you look at because there are some seasonalities that are always involved, the sale has been higher than the last year, which is a promising sign. So I’m not too sure where you’re seeing the dip.<\/p>\n

Meet Jain<\/strong><\/p>\n

So nine months we did a revenue of INR807 crores, and for base nine months, it’s around INR710 crores. I agree for you to say nine month basis, we have seen a growth. But for 3Q if we deduct the half yearly numbers, we are seeing a decline in revenue for this quarter.<\/p>\n

Rohan Grover<\/strong><\/p>\n

So this is also because of the seasonality in the business. And since we have sometimes stocked the material here, and switched from old crop to new crop, and that’s the only situation. So there is no decline as such in the, if you look at on an overall annual basis. It will be back on the track when you look at the full year basis.<\/p>\n

Meet Jain<\/strong><\/p>\n

Okay, got it. Other question is on this rice output, as you indicated the yield was pretty lower than the last year expected which are expecting price increase. And also the follow-up on the previous question, on the stock levels, we have seen an increase in price of 8%. So can we see this prices to move up further for the coming quarters?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Yes. Sales price or what? What is the question? So is it — yes.<\/p>\n

Meet Jain<\/strong><\/p>\n

So as we have discussed at the stock level, we have seen an 8% increase in the price YoY basis, and you also indicated that production of this year has been a little short of what we were expecting earlier. So going ahead as we also mentioned that we will see an increase in price of Basmati overall in coming quarters, and our procurement like you earlier guided that we do measure the procurement almost 60%, 70% or more than that in this quarter. So going ahead, any procurements, can we see it in the higher prices?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Yes. So we are covering ourselves roughly 80% of — that’s our policy. So this year also we will cover 80%, and whatever the price in procurement has happened, the rise that we will try to pass on to consumers. Some part of the world we will be. But some part of the world we have to evaluate how this duty impact goes away. So by quarter end, we will be more clear on the margin side.<\/p>\n

Meet Jain<\/strong><\/p>\n

Understood. And last question is on the Europe part, we have seen a very strong quarter just [Indecipherable] the Europe segment. So can you attribute the — how much will be attributed to the U.K. business — U.K. capacities and the Netherland capacities? What can be the break up of that?<\/p>\n

Sachin Gupta<\/strong><\/p>\n

So Meet, the major growth that has happened is basically because of the U.K. capacity itself. The U.K. capacity got operational in the later part of the last year. So our growth was majorly because of the U.K. Otherwise, the normalized — if you normalize the things it is in the range of 11% to 12%.<\/p>\n

Meet Jain<\/strong><\/p>\n

Okay, understood. Got you. Thank you. I’ll come back in the queue.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from the line of Abhishek Maheshwari from SkyRidge Fund Managers LLP. Please go ahead.<\/p>\n

Abhishek Maheshwari<\/strong><\/p>\n

Hi. Thank you for the opportunity, and congratulations on good set of numbers.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Thank you, Abhishek.<\/p>\n

Abhishek Maheshwari<\/strong><\/p>\n

Sir, I have only two questions. Firstly, I think some time ago the President of United States, he had posted on X regarding additional 25% tariffs on anyone doing business with Iran. Now, as LT Foods, we don’t do business with Iran, but our country does do business with Iran. So was this ratified or was this more of an impulse to kind of a post from the President? Any clarity on this?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Abhishek, there is no any action on that. But we — every day we all hear these things [Speech Overlap].<\/p>\n

Abhishek Maheshwari<\/strong><\/p>\n

So right now it’s 50% only, this additionally.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Now it is 50%. Yes.<\/p>\n

Abhishek Maheshwari<\/strong><\/p>\n

Okay, got it. Sir, secondly, the Thailand tariffs are about 19%. So is Golden Star still doing pretty okay? And will it be able to compensate for slightly moderating demand for Basmati in U.S.?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

So Jasmine rice, the Golden Star is doing very well. That’s growing. So no issue on the growth side. Only this year also, the Jasmine rice has gone up, so maybe a little impact on the margin side. But as far as consumption growth, that is very well placed.<\/p>\n

Abhishek Maheshwari<\/strong><\/p>\n

Okay, thank you. Lastly, do you expect that perhaps the increase in procurement price that you are seeing, the impact of that could be slightly moderated by this dollar appreciation that we are seeing vis-a-vis rupee?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Partly.<\/p>\n

Abhishek Maheshwari<\/strong><\/p>\n

All right. I’ll get back to the queue. Thank you very much.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from the line of Abhishek Mathur from Systematix. Please go ahead.<\/p>\n

Abhishek Mathur<\/strong><\/p>\n

Yes, hi sir. Thank you for the opportunity. My question was on the regional rice market where you have made some recent launches, and which is a significantly bigger market than our Basmati rice. So there I just wanted to check, what is the update on our progress in terms of our foreign regional rice? And what is our way to win that you see, given that there are a number of entrenched regional players who are strong in their respective pockets?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

So regional rice, is doing very well, DAAWAT regional rice and internationally also. As far as LT’s strategy on the regional rice is that, we will be only on the premium end of the market, and not on the mass because that’s a very — margins are very competitive. So on that front, on that strategy, we are doing very well. We are well placed in e-commerce, modern trade and very key outlet. So we are optimistic on whatever the business plan we have built on the regional rice.<\/p>\n

Abhishek Mathur<\/strong><\/p>\n

And sir, would you be able to [Speech Overlap] yes, sir, go ahead.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

You ask your question, please?<\/p>\n

Abhishek Mathur<\/strong><\/p>\n

So would you be able to quantify what is currently in terms of tonnage, our sales in regional rice right now? Is it material?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Yes, I’ll say, I think in India we sell around INR200 crores worth regional rice on annual-level best businesses.<\/p>\n

Abhishek Mathur<\/strong><\/p>\n

And in volume terms or tonnage terms?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Sachin, can you get the —<\/p>\n

Sachin Gupta<\/strong><\/p>\n

So we will…<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Roughly, 50,000.<\/p>\n

Sachin Gupta<\/strong><\/p>\n

Roughly 50,000, and you can take the data from our IR team, and we will provide you quantitative. Roughly, it is 50,000 tonnes.<\/p>\n

Abhishek Mathur<\/strong><\/p>\n

All right, sir. That’s it for me. Thanks, and all the best.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. [Operator Instructions] Our next question is from the line of Rehan Saiyyed from Trinetra Asset Managers. Please go ahead.<\/p>\n

Rehan Saiyyed<\/strong><\/p>\n

Yes, good afternoon to the team, and thanks for opportunity. So like my most of my questions have been answered, so I am just left with one. Like I wanted to understand regarding your RTH, RTC business. So you have — we have seen like 2.5 times growth from FY ’20 to ’25, yet EBITDA margin remained negative at minus 9%. So what sale or revenue threshold is required for this segment to break even in this, management still able to give the strategic. What’s your reasoning?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Okay. So on the margin side, where it will get break even, Sachin, will give you a number. But as far as our RTH business, the bigger business is in U.S.A. And as explained in the last call also, we have built up the next capacity which is 15 million pouches. And that will be started in the next financial year. So that we have a good perspective. As far as India is concerned, Ready-to-Eat, Ready-to-Cook is a small market for us. But our DAAWAT biryani kit is doing very well, and growing kind of month on month 20%. So on the numbers, I think Sachin can.<\/p>\n

Sachin Gupta<\/strong><\/p>\n

As regarding the breakeven as — so breakeven from a current level once it crosses the INR400 crore mark, there will be a breakeven in the EBITDA. So till that time, we will be in the investment phase, and there will be the investments that will be required. And we are optimistic — optimistic to achieve in the next three years.<\/p>\n

Rehan Saiyyed<\/strong><\/p>\n

What’s the next? Hello?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Yes.<\/p>\n

Rehan Saiyyed<\/strong><\/p>\n

What is the next year, you have said next year.<\/p>\n

Monika Chawla Jaggia<\/strong><\/p>\n

He’s saying breakeven will happen by when?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

So next three years.<\/p>\n

Sachin Gupta<\/strong><\/p>\n

No, next three years. So it will be doubling in next three years what we are expecting.<\/p>\n

Rehan Saiyyed<\/strong><\/p>\n

Okay. Fair enough. Thank you. I’ll jump into the queue.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from the line of Pranav Bhootra from Anand Rathi. Please go ahead.<\/p>\n

Pranav Bhootra<\/strong><\/p>\n

Hi. Thank you for the opportunity. I had a question regarding the market share in India and Middle East, particularly in India [Speech Overlap]<\/p>\n

Operator<\/strong><\/p>\n

Sorry to interrupt sir, but can you be a little more louder?<\/p>\n

Pranav Bhootra<\/strong><\/p>\n

Can you hear me?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Yes. A little louder will be better.<\/p>\n

Pranav Bhootra<\/strong><\/p>\n

Yes. So I wanted to ask regarding the Indian market share and the Middle East. Particularly on Indian market, we have lost around 300 basis point on quarter-on-quarter basis. And last year we had around 30% market share in Basmati. So like what — can you just throw a bit light on that? Had we — like is this because of the price hike or have we discontinued any product or something?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

So as far as the household reach, we have increased our household reach from 45 lakh to 58 lakh. So that has increased. On the market share, we are growing at a premium end of the market, losing on the lower price point, the market share. But overall, on the premium end of the market, we are growing. And our household is also growing.<\/p>\n

Pranav Bhootra<\/strong><\/p>\n

Okay. And regarding the Middle East market, can you just give me an exact market share like last year we had [Speech Overlap]<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

That will be, that’s a big market. And we have not in terms of market share, but I can tell you, in UAE, we have around 10% market share in the premium end of the market. Saudi, we have started. We are getting very good response. The market is growing. So overall Middle East we are bullish. We are investing on that. And we wanted to grow 20% year-on-year from the base we have.<\/p>\n

Pranav Bhootra<\/strong><\/p>\n

Okay, okay. That’s…<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

And that’s — the plan is well placed. Yes.<\/p>\n

Pranav Bhootra<\/strong><\/p>\n

Okay. Got it. That’s really helpful. I will join back on the queue. Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from the line of Damodaran from Acuitas Capital. Please go ahead.<\/p>\n

Damodaran Narayanan<\/strong><\/p>\n

Yes. Hello. Thank you for the opportunity. Just had two bookkeeping questions. One was on your interest cost seem to have gone up by 46% year-on-year. What explains that? That is one. And the second one is, can you give the nine month numbers for — growth numbers for Golden Star business for revenue and PBT?<\/p>\n

Sachin Gupta<\/strong><\/p>\n

So Damodaran, as regarding the interest cost going up, so this has been basically because of the two factors that have played. Firstly, the average working capital utilization. Secondly, it is on the basis of the lease accounting. The lease accounting, which takes place, so last year itself, majorly in this part of this year, as the U.K. operations have started the lease accounting because the warehouse is on lease. So that has affected our overall interest cost and depreciation, the warehouse costing. And as regarding the Golden Star growth, the revenue growth in this nine months is almost 2% growth in the rupee terms that I’m talking about.<\/p>\n

Damodaran Narayanan<\/strong><\/p>\n

Okay. And in PBT terms, if you can say?<\/p>\n

Sachin Gupta<\/strong><\/p>\n

So the PBT terms, we have made a PBT margin of almost 8% — 7% PBT margin.<\/p>\n

Damodaran Narayanan<\/strong><\/p>\n

Okay. And you said there were some margin decline. So I mean can you give that same number for last year?<\/p>\n

Sachin Gupta<\/strong><\/p>\n

So almost in this last year, it was almost 8.5% last year. It declined to almost 6%. So 2.5% decline. Yes.<\/p>\n

Damodaran Narayanan<\/strong><\/p>\n

This is attributable primarily to Jasmine rice prices increasing.<\/p>\n

Sachin Gupta<\/strong><\/p>\n

Correct. The input cost going up. So that resulted in, as Ashwani-ji in the initial talk, talked about the Jasmine input cost being increased.<\/p>\n

Damodaran Narayanan<\/strong><\/p>\n

Sure. Okay. Thanks. That’s all from my side. Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from the line of Vipulkumar Shah from Sumangal Investments. Please go ahead.<\/p>\n

Vipulkumar Shah<\/strong><\/p>\n

Thanks for the opportunity. So what is our gross and net debt right now?<\/p>\n

Sachin Gupta<\/strong><\/p>\n

So our net debt is almost without — I am excluding the FDR that we have kept for the insurance claim. Our net debt is almost INR180 crores — INR1,180 crores.<\/p>\n

Vipulkumar Shah<\/strong><\/p>\n

And has there been improvement year-on-year or it is same?<\/p>\n

Sachin Gupta<\/strong><\/p>\n

Slightly it has decreased from the last year. So our debt positions have decreased.<\/p>\n

Vipulkumar Shah<\/strong><\/p>\n

And regarding the notes to your accounts, so it is a little confusing. So we have received this INR26,000 crores from the insurance company, right. But the case is still going on.<\/p>\n

Sachin Gupta<\/strong><\/p>\n

No. That’s INR260 crores, that is all.<\/p>\n

Vipulkumar Shah<\/strong><\/p>\n

INR26 crores, sorry, INR260 crores, sorry.<\/p>\n

Sachin Gupta<\/strong><\/p>\n

Correct. So that is INR260 crores, yes, we have received that amount, but against that we had to give a bank guarantee. So still it cannot be utilized. So we have given a margin against that — the amount received. So it is in the type of FDR.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Vipul-ji we have won the case in the first court. Then they have gone to high court. And high court said, we will only hear you when you will give them the money. And then they went to supreme court. Supreme court said, give the bank guarantee and take the money. So we have taken the money. So — but we have given the bank guarantee against the FD, same amount. Hopefully, we will get verdict in the coming two, three months from the high court, which is pending there.<\/p>\n

Vipulkumar Shah<\/strong><\/p>\n

So right now we are earning interest on it, but we cannot use that money.<\/p>\n

Sachin Gupta<\/strong><\/p>\n

That’s right. So still the interest hasn’t been recognized. We are not recognizing that interest in our income. So we are accruing the amount that’s being accrued, but we are not recognizing it in our income.<\/p>\n

Vipulkumar Shah<\/strong><\/p>\n

Okay. And regarding this tariffs at U.S., so if I have understood you correctly, whatever you bill to your U.S. subsidiary, 50% on that value is charged, not at the price at which you sell to your customer. Is that understanding correct?<\/p>\n

Sachin Gupta<\/strong><\/p>\n

Correct.<\/p>\n

Vipulkumar Shah<\/strong><\/p>\n

Okay, sir. Thank you. And all the best.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Thank you, Vipul.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from the line of Rajesh Agarwal from Moneyore. Please go ahead.<\/p>\n

Rajesh Agarwal<\/strong><\/p>\n

Sir, my question is, was the tariff passed on smoothly or there was resistance from the customer or you see a slowdown?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

No, there is a — there is always resistance from the customer. And that’s what I said, we have majority passed on. So there is a big resistance. But fortunately, being Basmati, mainly from India.<\/p>\n

Rajesh Agarwal<\/strong><\/p>\n

Okay. But still if we are able to pass on this — our product is good or we have an advantage.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Yes. Royal is a very strong brand, very high quality brand.<\/p>\n

Rajesh Agarwal<\/strong><\/p>\n

Okay. Sir if there is a reduction in tariff, it’s a hypothetical question, 25% or whatever. Then we can easily pass on the input cost also which has increased.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

That’s what our expectation is. Yes.<\/p>\n

Rajesh Agarwal<\/strong><\/p>\n

Okay. But you don’t see any demand destruction? No.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

In January, there is a little bit slowdown as compared to last year. But this — till March, the things will be more clear here. Yes.<\/p>\n

Rajesh Agarwal<\/strong><\/p>\n

Okay. So but we are billing and — billing to them now, we are sending still the goods at a higher tariff to them.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

The business is, touchwood, doing very regular business.<\/p>\n

Rajesh Agarwal<\/strong><\/p>\n

Okay. And sir, any comments on the growth outlook for the next year? Nothing.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

So the guidance we have given is the double-digit growth on the revenue side. That looks intact. On the margin side, as I said, we will come to know in the next quarter.<\/p>\n

Rajesh Agarwal<\/strong><\/p>\n

Okay. Sir, but the crop availability won’t be a problem, going forward, if we can do a double-digit growth availability of crop wouldn’t be a problem?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Doesn’t look like.<\/p>\n

Rajesh Agarwal<\/strong><\/p>\n

It doesn’t look like. So the input prices have gone up, but availability won’t be a problem.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

We have identified our risk and we keep evaluating, and we have a big — our farmer extension team which work with the farmer that how they can improve their productivity, how they can overall increase their income. So we are very well connected on the farm side also.<\/p>\n

Rajesh Agarwal<\/strong><\/p>\n

Okay.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

So we don’t see at least the next 10, 15 year any, so farmer is making better money with lesser the water and all these things. And the state government is also promoting because India is sitting in very heavy non-Basmati stock, so states and center is promoting the farmer to grow Basmati.<\/p>\n

Rajesh Agarwal<\/strong><\/p>\n

Okay. And sir, are we supplying to Iran? We are not supplying to Iran.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

No, no we are not working, we are not working with Iran.<\/p>\n

Rajesh Agarwal<\/strong><\/p>\n

So we won’t be facing that another 25% tariff because if you’re not supplying, then why should we…<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

I think we have not got any [Indecipherable]<\/p>\n

Rajesh Agarwal<\/strong><\/p>\n

Yes. Understood. Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from the line of Harsh Shah from Bandhan AMC. Please go ahead.<\/p>\n

Harsh Shah<\/strong><\/p>\n

Yes. Hi sir. Thanks for taking my question. Sir, firstly, terms of your guidance for Europe, you have mentioned that the five year target is EUR100 million — sorry, GBP100 million. In that regard, I mean I wanted to understand that we are already — our revenue is above that number, right. So does this statement mean that the incremental revenue will be [Indecipherable] in five years?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

I don’t know, Harsh, which…<\/p>\n

Monika Chawla Jaggia<\/strong><\/p>\n

What is the number that you have mentioned, Harsh, for the revenue?<\/p>\n

Harsh Shah<\/strong><\/p>\n

16. Yes. Slide number 16, when you give a nine month FY ’26 segmental breakup of India, North America, Europe and Middle East, right, revenue mix and Y-o-Y growth. In Europe, you’ve commented at a five year target for revenue is GBP100 million, right. But our current business itself is…<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

No, that is U.K. No, the U.K. is at the moment is GBP45 million. That is the projection for the U.K. not the complete Europe. So we have separated U.K. and the EU, the Continental Europe.<\/p>\n

Harsh Shah<\/strong><\/p>\n

So U.K. sir, will be what? EUR45 million going to GBP100 million basically, sorry, doubling in five years.<\/p>\n

Sachin Gupta<\/strong><\/p>\n

Correct, Harsh, that is the — that is what, that is…<\/p>\n

Harsh Shah<\/strong><\/p>\n

Second question on the tariff thing, right, now you said that we already have two, three months of stock in U.S., right? Because service levels have to be very high. And for the stock that we send there to U.S. with 50% tariffs, right, already which we have. Now in an event, let’s say if the tariffs are reversed, right, so for the existing inventory which we have there, will it be a one-time knock for us?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

It depends, Harsh, the time will tell. But as I said, the consumer customer is most important. And at that time, we will take a call.<\/p>\n

Harsh Shah<\/strong><\/p>\n

Sir, my question is not on the demand part. My question is basically we have paid 50% tariff, right, already.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

That’s the risk, that depends on the competitive landscape. That is the risk we are living with.<\/p>\n

Harsh Shah<\/strong><\/p>\n

And thirdly, interesting one thing in one of the slides in your, where you kind of on your brand, there is a new brand called Hadeel, right. And is this brand specific for Saudi Arabia market?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Yes, this is a brand for Saudi, yes. Let’s say mainly to the food service. Yes, to the food service. Yes.<\/p>\n

Harsh Shah<\/strong><\/p>\n

Food services. Okay. So it’s mainly for HORECA.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

That’s called DAAWAT, Hadeel.<\/p>\n

Harsh Shah<\/strong><\/p>\n

Correct. Okay. So it’s mainly for HORECA segment, right?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

That’s right.<\/p>\n

Harsh Shah<\/strong><\/p>\n

Okay. Thank you.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Thank you, Harsh.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. [Operator Instructions] The next question is from the line of Chirag Singhal from First Water Fund. Please go ahead.<\/p>\n

Chirag Singhal<\/strong><\/p>\n

Thanks for the opportunity. My question is on your domestic sales. So there are some news articles which mentions about Basmati consignments which are stuck at Indian ports, and some rice millets have noted that the price drops have happened in India. And Iran is a key export market. So have you seen any price declines in your Basmati sales during the quarter? And do you see the slowdown in Iran exports leading to any sort of oversupply in domestic markets?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

On the price side, it’s other way around, there is a hike in the commodity price. And as far as Iran is concerned, the data we are seeing is growing 11% from India to Iran. Historically, we have seen these kind of disruption in Iran, but we have not seen any impact on the demand side because what we have seen historically, food is the last one to get impacted on this geopolitical disruption cycle.<\/p>\n

Chirag Singhal<\/strong><\/p>\n

So which period are you referring to for this 11% growth in Iran?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Say, nine months data.<\/p>\n

Chirag Singhal<\/strong><\/p>\n

Okay. All right. That would be it from my end. Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from the line of Ankur Arora from Magma Ventures. Please go ahead.<\/p>\n

Ankur Arora<\/strong><\/p>\n

Good afternoon, sir. Congratulations on a good set of numbers in a difficult environment. Couple of questions, just a follow-up is one of the participants has already asked this question. How much is the gross margin on the U.S. number? I know you have overall gross margin of say 35% odd, but in U.S.A. it will be more like 40%, 45% or it’s roughly the similar range as the rest of the business is.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Similar range. Similar range.<\/p>\n

Ankur Arora<\/strong><\/p>\n

Okay. So just to understand it right, sir you have say, INR100 inventory going from India to U.S.A., and you sell it say INR150, that’s how the 33% cost margin comes in. At INR100 you got a INR50 duty, right, because that’s why input. So your cost basically goes to INR150, right. And you’re selling it from INR200 now because you’re passing on that INR50 out there. So that means your margin has gone down to 25%. Am I understanding it right or what is the gap in that?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

So I think you can get in touch with our IR, they will explain you, on how it works.<\/p>\n

Ankur Arora<\/strong><\/p>\n

Okay. On the other side, how much of the end price of the customer gone up by in U.S.A. in terms of rice? And you would be obviously in touch with the customer. So how much is the end price increase for the customer?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

So roughly, 25%.<\/p>\n

Ankur Arora<\/strong><\/p>\n

Roughly, 25%, okay. And third question on Golden Star, how much was revenue in this quarter? Last quarter, I think it was on INR350 odd crore. So is there a similar ballpark this time also?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

So it is within the — so it is, as I’ve stated, in this nine months the sales in the Golden Star is INR486 crores in the rupee terms. So it is more or less monthly, equally.<\/p>\n

Ankur Arora<\/strong><\/p>\n

Monthly around INR100 odd crore. Sorry, not even that much. It’s less than that.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Correct.<\/p>\n

Ankur Arora<\/strong><\/p>\n

And the Golden price — Star price also has gone up around 20%, right. Because it will be 20% tariff on Thailand — from Thailand…<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

That’s on the COGS. So maybe lesser a little bit.<\/p>\n

Ankur Arora<\/strong><\/p>\n

Okay, on the COGS it will be lesser, got it. Yes, that’s pretty much it. I just wanted to understand that. I will get back to the IR team to get some clarification on the numbers. Thank you.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Sure. Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Next question is from the line of Amit Doshi from Care Portfolio Managers Private Limited. Please go ahead.<\/p>\n

Amit Doshi<\/strong><\/p>\n

Yes. Sir, you mentioned about the Hadeel brand, which is a HORECA for Saudi business. And our normal branded business, you mentioned is around INR35 crore of sale, which means that in this quarter, December quarter the sale is of around INR7 crores only. Is that correct?<\/p>\n

Monika Chawla Jaggia<\/strong><\/p>\n

Saudi business we said, the branded business is around INR35 crores.<\/p>\n

Sachin Gupta<\/strong><\/p>\n

So Hadeel is our HORECA brand.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Yes.<\/p>\n

Sachin Gupta<\/strong><\/p>\n

Easy thing, Hadeel is our HORECA brand. And from Saudi we achieved a revenue size of INR35 crores. So this means our sales is INR7 crores from others. So that is not so, Amit. If you look at the overall sales in the Middle East as such, so Middle — what Ashwani-ji told Hadeel is a HORECA brand in the overall Middle East region. So it is not — not specific to a Saudi yet itself, it is for the whole region.<\/p>\n

Amit Doshi<\/strong><\/p>\n

So if you count only the branded revenue, so H1 was INR28 crore and nine months is INR35 crore for branded revenue from Saudi.<\/p>\n

Sachin Gupta<\/strong><\/p>\n

So the branded revenue if you talk about is at INR35 crores in this nine months, and it was INR17 crores last year.<\/p>\n

Monika Chawla Jaggia<\/strong><\/p>\n

From last year yes, it is good — double.<\/p>\n

Sachin Gupta<\/strong><\/p>\n

Currently, it has doubled as compared to the last year.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

So number — Amit, you get the clarification later.<\/p>\n

Amit Doshi<\/strong><\/p>\n

So basically the…<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

We are investing time on the strategy and everything for the last one and a half year, two years. But now all the things are working. So we are positive on things. On the number clarification, we…<\/p>\n

Sachin Gupta<\/strong><\/p>\n

So Amit, [Speech Overlap] right on the.<\/p>\n

Amit Doshi<\/strong><\/p>\n

I understand, sir. What I want to understand, Ashwani-ji is that INR7 crore in a Saudi market, would it be considered as a small number for a quarter?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

I think on Saudi, we started our — with food service and wholesale. Now on the DAAWAT brand, the journey has started, the route to market and everything has been finalized. So in the coming time, you will see a change in DAAWAT sales here.<\/p>\n

Amit Doshi<\/strong><\/p>\n

Okay. And for regional rice, you have said that we have around INR200 crores of sales. I think the new capacity is coming in the February, a few days from now. What is the likelihood of the total revenue at full potential? Obviously, it will take couple of years, probably. But just to…<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

That facility is a packing unit. So we are building these all supply chain infrastructure to meet the future demand. But this I think the capacity is only for –will be sufficient for the next two year.<\/p>\n

Amit Doshi<\/strong><\/p>\n

Okay. In terms of revenue what it can contribute?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

So roughly, I will say, INR200 crore more.<\/p>\n

Amit Doshi<\/strong><\/p>\n

Okay. Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from the line of Harsh Shah from Bandhan AMC. Please go ahead.<\/p>\n

Harsh Shah<\/strong><\/p>\n

Yes. Thanks for the follow-up. Ashwani-ji, you mentioned that the new RTH capacities from U.S.A., right, that number in terms of volume we can do 1.5 million or 15 million pieces a year?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

[Foreign Speech] Harsh, pouches more. Yes. So that means roughly.<\/p>\n

Harsh Shah<\/strong><\/p>\n

And sir roughly that would mean how much of, let’s say, if additional revenue at current this realization.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

I can give you a ballpark number is $20 million revenue will be more. Yes.<\/p>\n

Harsh Shah<\/strong><\/p>\n

$20 million.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Yes.<\/p>\n

Harsh Shah<\/strong><\/p>\n

Okay. And certainly this INR486 crore Golden Star revenue for nine months, right?<\/p>\n

Sachin Gupta<\/strong><\/p>\n

Correct.<\/p>\n

Harsh Shah<\/strong><\/p>\n

This is for the period of nine months or this is for the period of our consolidation.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

So it is the period for — yes, you are right, it is a period for the consolidation.<\/p>\n

Harsh Shah<\/strong><\/p>\n

Consolidated?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Consolidated.<\/p>\n

Harsh Shah<\/strong><\/p>\n

Okay. That will be more than I think five months, right? Roughly five months.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

So if you talk about the nine months number it is INR658 crores.<\/p>\n

Harsh Shah<\/strong><\/p>\n

INR658 crores, okay. I was confused in that. And last year, we closed FY ’25 at what revenue, sir, for…<\/p>\n

Sachin Gupta<\/strong><\/p>\n

The dollar terms it is around $130 million. So we crossed around that dollar numbers for the full year.<\/p>\n

Harsh Shah<\/strong><\/p>\n

Okay. Thank you so much, sir.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from the line of Abhishek Jaiswal, an individual investor. Please go ahead. Hello. Mr. Abhishek.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Yes.<\/p>\n

Operator<\/strong><\/p>\n

Yes, you are on the call.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Thank you. Am I audible?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Yes. Abhishek. Yes.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

So I was trying to work out the price that you have been able to sort of pass on to the U.S. consumers as a result of the tariffs. And so it seems like basis some information that was shared in the call, it seems that we have been able to pass around 18% increase in the price to the U.S. consumers. And the way I kind of came across that figure is by taking away the nine month sales of Golden Star from the nine month total sales. Is that accurate or is that — is there a difference?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

So we will give you. You be in touch with our investors, we will give you maths. But overall, the business is good till time the margins are impacted and all these things.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay, sure. And my next question — my other question is, why — so I’ve seen that our sales in the Middle East have kind of dropped year-over-year by about 11%, nine month figures. Any reason for that? Have we taken away any category there? Like what’s our strategy to get back the market — get back the revenue growth?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Till time we are — the strategy is very organic. We have roughly in Middle East around 50,000 tonne base. And we will build it year-on-year by growing 20%.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay. But that doesn’t explain like why the sales went down by 11%.<\/p>\n

Sachin Gupta<\/strong><\/p>\n

So our major reduction in the sales that happened because of the private label business. Certain private label non-strategic business which we did last year, that we purposefully didn’t did it for this year. Our branded revenue sales have increased during this nine months.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Got it. So our margins overall has become better and we continue to work on that only.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Correct, correct.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Got it. All right. That is it for my side. Thank you.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Our next question is from the line of Aman Govil an individual investor. Please go ahead.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Hello?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

[Foreign Speech] Aman-ji.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Thank you very much for the opportunity to allow me to ask questions. First of all congratulations to the whole team for the good set number. My first question is regarding margin management. What is the management’s strategy to improve the compressed PAT margin? So it declined at most 5.6% from 6.39% Y-o-Y. Are the pressure transitionary or structural?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Aman, the pressures are very, very — we feel is temporary because of this — all this disruption geopolitically. The goal we have given — what advice that on the ROCE terms we are in the range of 20, and we wanted to move 23. And business is very well placed on a structure level. Our gross margins are very good. We are a very well-diversified kind of global presence. Business is doing very well in India, growing on the premium end of the market. So structurally, we are very well placed. So it is the kind of geopolitical risk which is happening for the last two, three years. But fundamentals of the business are very strong.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Right, sir. Okay. My next question if you allow.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Sure, sir.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Looking to the potentials — potential fluctuation in Basmati rice price, say raw material price rise, and rising input cost. Will the company focus to hold the price to improve margin or pass the benefit to consumer to gain the market share?<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

So it depends geography to geography. We take call accordingly where, if strategy is helping us to grow better market share, then we don’t pass on. And where we are a brand leader there we’ll pass on. So it depends. It’s a very, very strategic geographically. So we use both the strategies. It depends on geography.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Right, sir. Okay. Understand.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Thank you.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

If you comment [Foreign Speech] comment from side of the management.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

So as I just said, LT Food is very well placed, you see in the consumer space, LT Food is growing better than the overall competitive FMCG space. So that’s the fundamental. So all fundamentals are very, very strong in terms of brands, in terms of the category growth. So we are very well placed. We are very confident that whatever the guidance has been given to the market, so we will be there.<\/p>\n

Unidentified Participant<\/strong><\/p>\n

Okay, sir.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Thank you.<\/p>\n

Operator<\/strong><\/p>\n

Thank you. Ladies and gentlemen, in the interest of time, that was our last question. I would now like to hand the conference over to the management for closing comments.<\/p>\n

Monika Chawla Jaggia<\/strong><\/p>\n

Thank you, everyone. On behalf of the management of LT Foods Limited, we thank you all for joining us on our post earnings call today. We hope we have been able to address the majority of your queries. You may reach out to me or our Investor Relations partner, Ernst & Young, for any further queries that you may have, and they would connect with you offline. Thank you. Thank you, all.<\/p>\n

Ashwani Kumar Arora<\/strong><\/p>\n

Thank you.<\/p>\n

Operator<\/strong><\/p>\n

[Operator Closing Remarks]<\/p>\n","protected":false},"excerpt":{"rendered":"

LT Foods Ltd (NSE: LTFOODS) Q3 2026 Earnings Call dated Jan. 30, 2026 Corporate Participants: Monika Chawla Jaggia \u2014 Chief Corporate Development Officer Ashwani Kumar Arora \u2014 Managing Director and Chief Executive Officer Sachin Gupta \u2014 Chief Financial Officer Rohan Grover \u2014 Chief Executive Officer Nature Bio Foods Analysts: Meet Jain \u2014 Analyst Pradyumna Choudhary […]<\/p>\n","protected":false},"author":2377,"featured_media":147581,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[6349],"tags":[10169,9175,9104,9092,14492,15197,10089],"class_list":["post-181530","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-transcripts","tag-earnings","tag-earnings-call","tag-earnings-conference","tag-earnings-transcripts","tag-financial-results","tag-ltfoods","tag-quarterly-earnings"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/Transcript-thumbnail.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":109778,"url":"https:\/\/alphastreet.com\/india\/infosys-limited-infy-q4-2021-earnings-call\/","url_meta":{"origin":181530,"position":0},"title":"Infosys Limited (INFY) Q4 2021 Earnings Call","author":"Sahil Anand","date":"April 21, 2021","format":false,"excerpt":"Infosys Limited (NYSE: INFY) Q4 2021 earnings call dated\u00a0Apr. 14, 2021 Corporate Participants: Sandeep Mahindroo\u00a0\u2014\u00a0Vice President, Financial Controller & Head \u2013 Investor Relations Salil Parekh\u00a0\u2014\u00a0Chief Executive Officer and Managing Director Pravin Rao\u00a0\u2014\u00a0Chief Operating Officer and Whole-time Director Nilanjan Roy\u00a0\u2014\u00a0Chief Financial Officer Analysts: Ankur Rudra\u00a0\u2014\u00a0JPMorgan \u2014 Analyst Diviya Nagarajan\u00a0\u2014\u00a0UBS \u2014 Analyst\u2026","rel":"","context":"In "Earnings"","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/04\/Infosys-Limited-Q4-2021-Earnings-Call.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/04\/Infosys-Limited-Q4-2021-Earnings-Call.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/04\/Infosys-Limited-Q4-2021-Earnings-Call.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/04\/Infosys-Limited-Q4-2021-Earnings-Call.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/04\/Infosys-Limited-Q4-2021-Earnings-Call.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/04\/Infosys-Limited-Q4-2021-Earnings-Call.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":142292,"url":"https:\/\/alphastreet.com\/india\/kpr-mill-ltd-kprmill-q3-fy23-earnings-concall-transcript\/","url_meta":{"origin":181530,"position":1},"title":"KPR MILL LTD (KPRMILL) Q3 FY23 Earnings Concall Transcript","author":"IRS_INDIA","date":"February 21, 2023","format":false,"excerpt":"KPR MILL LTD (NSE:KPRMILL) Q3 FY23 Earnings Concall dated Feb. 7, 2023. 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