Thank you. Good afternoon, everyone, and a warm, warm welcome to LT Foods Limited Q3 FY '26 post-results earnings 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 Affairs Officer.

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.

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. 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.

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 ₹8,085 crores, year-on-year growth of 24%, normalized growth of 12% excluding US tariff and Golden Star. The company reported an EBITDA of ₹936 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 ₹2,812 crores, that is year-on-year growth of 23%, normalized growth of 8% excluding US tariff and Golden Star. The company reported EBITDA of ₹317 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 investment, certain strategic initiatives including digitalization initiatives.

I would like to provide an update on the CVD duty concerning Ecopure Speciality Limited, a fellow subsidiary of LT Foods. A public hearing was conducted on September 16, 2025, where both the parties presented their arguments before the US government Department of Commerce.

The final determination was earlier expected by November 17, 2025, however, due to US government shutdown, the timelines have been further extended and is now expected by February 17, 2026. An update on our basmati paddy 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, farm 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 despite stable acreage.

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. 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 US 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.

The organic 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 degrowth in nine months financial year '26.

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 US 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 US, including higher media and digital spends, 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. Looking ahead, we may see impact on consumer demand due to increased basmati rice prices and input cost.

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. 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. 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 constitute the remaining 9% of our revenue.

Of this, 35 crores is the 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 the hiring of experienced professionals in this space.

With this, I would now like to hand over the call to the moderator to open the floor for question-answer. Thank you.

Yeah. 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? What exactly is the situation in US, 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.

Hi. You have asked the two question.

One is on any impact on the consumption, and the second is on the duty pass-on. As far as consumption is concerned, January we are seeing little bit slowdown in the mainstream.

That will be more clear in JFM, because sometime people buy before the price increase. I think in this quarter, the things will be more clear that how it is impacting the consumption.

On the duty side, as you have seen in the result also, majority part of the duty we have passed on. Yeah.

Having said that, this year the input cost has increased. 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.

All right. Most of the tariffs, you're saying the current tariffs are 50%.

Most of this currently has been passed on is what you're saying?

That's what I said, yeah.

All right. In terms of the consumption pattern, what are we really seeing?

Are customers accepting this higher price for our basmati rice, or are we seeing more higher exports going from Pakistan to US, or are we seeing locals over there consuming more of locally grown rice and shifting away from basmati rice due to higher prices?

That's what I tried to answer, that in January month, we have seen little bit slowdown. That is not the real picture.

January, February, March, this quarter sales will give us a clear trend. That's the answer.

Hi. Sir, you mentioned that most of the tariff has been passed on, which is 50%.

If I look at the numbers which is mentioned in the presentation of where nine-month data has been provided and which indicates that there is a 26% revenue growth of basmati and 20% volume growth. Presuming that, 50% tariff, the revenue growth should have been far higher.

Or am I missing something?

It is normalized.

In the presentation itself, if you see, the normalized growth, if we normalize the US tariff and yes, because we had acquired Golden Star, this year the whole of the revenue is getting consolidated. If we normalize that both things, our revenue growth in this nine months is 12%.

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%.

That is also on the imports, the imported value of the goods, not on the sales value. You're getting me, Amit?

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 US tariff, the normalized growth was 11%.

Correct.

Presuming, that's H1 and there's not much difference between the volume growth figures of H1 and nine months. For this quarter, which is the full quarter where 50% tariff has been levied, 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 a LT Foods send it to our US subsidiary, correct?

Correct. Correct.

Correct.

In the consolidated, ultimately the numbers would include tariff as well, right? Standalone there is no, but in console it would appear to be.

Just correct me if I'm going wrong anywhere.

No, no. You are right, Amit.

My answer to this is the tariff is on the imported value in the US, not on the sales value that we are making on the sales to the third party. You're right in that sense the sales from India to the US that gets eliminated, but the tariff is on the imported.

If you look at that, this a 50% tariff comes out to be 25% to 26% on the overall sales value, not the 50% increase.

Okay. Okay.

How much inventory do we keep it at our US level, US company level?

Roughly, 2 to 3 months inventory. That is in warehouses, rest is in the transit.

Okay. Okay.

Okay. Okay.

Any changes that we have done because maybe we might have anticipating this US trade deal to be concluded?

It depends. The most important is to make sure that the customer service level is high.

Accordingly, we make sure that inventory is maintained. Service level is topmost important.

Okay. Okay.

Okay. Okay.

Mentioned that the crop is lower this year, what would be the paddy prices compared to last year, year-on-year? What have been the price rise in the paddy?

Sachin will give you exact number, but depends on variety to variety. Some varieties are at par.

Average would be fine, just to understand a ballpark general. What will be our average?

7% to 8% will be I think, 8% will be consolidated buying price.

Correct. Correct.

The average increase in the prices, if I take my stock levels as on December itself, the average increase in the stock levels of the paddy itself is 4.5%, 4% increase that is there. There are

certain Full-year basis will be It

will be, yes. As Ashwani ji told, full-year basis, it will be on the same ranks of 7% to 8% on the consolidated.

Because

we keep buying till March. This quarter, the buying is also very heavy.

On an average Yeah, yeah, yeah.

Okay. Understood.

Understood. Sir, on our organic business front, Sorry to interrupt, sir,

but if you have a follow-up question, please rejoin the queue.

Sure, sure. Okay.

Hello, hi, team. My first question is regarding the organic segment.

After the very good quarters of growth, we have seen a decline in this quarter, even after we have set up our capacity in Europe. Can you throw some light regarding what led to the decline in revenue this quarter?

This is about organic business, you're saying?

Yes. Yes, sir.

Rohan is on the line, who is the CEO of the organic business. Rohan, can you take this question, please?

Rohan?

Am I Hello?

Yes, Rohan. Hello, can you hear me?

Yes, yes.

You're audible, sir.

Yeah. Yes, I've heard the question.

Thank you. The capacities that we have built in Europe have been built in this year, and they would come into light in the coming years.

We've made the right investments for the future. The resources have been deployed.

The sales that you are seeing, I think overall on an annual basis, if you look at, because there are some seasonalities that are always involved, the sales have been higher than the last year, which is a promising sign. I'm not too sure where you're seeing the dip.

Nine nine months, we did a revenue of ₹807 crores, and for base nine months, it's around ₹710. I agree for you to say nine-month basis, we have seen a growth.

For Q3, if we deduct the half-yearly numbers, we are seeing a decline in revenue for this quarter. This is also because of the seasonality in the business, and since we are sometimes stock the material here and switch from old crop to new crop, and that's the only situation.

There is no decline as such if you look at on the overall annual basis. We will be back on the track when you look at the full-year basis.

Got it. Other question is on this rice output, as you indicated that the yield was pretty lower than the last year expected, which are expecting price increase.

Also on the follow-up on the previous question, on the stock levels, we have seen an increase in price of 8%. Can we see this prices to move up further for the coming quarters?

Sales and farm yield

and talking about the

Sales price or what is the question? Is it a Yeah.

As we have discussed that the stock levels, we have seen an 8% increase in the price YoY basis, and you also indicated that production of this year has been little short of what we are expecting earlier. Going ahead, as you also mentioned that we will see an increase in price of basmati overall coming quarters.

Our procurement, as we earlier guided, as we do majority of procurement, almost 60%, 70% or more than that, in this quarter. Going ahead, any procurements, can we see it at a higher prices?

Yes. We are covering ourselves roughly 80% of, that's our policy.

This year also, we will cover 80%. Whatever the price in procurement has happened, the rise, that we will try to pass on to consumer.

Some part of the world we will be, but some part of the world, we have to evaluate how this duty impact goes away. By quarter end, we will be more clear on the margin side.

Understood. Last question is on the Europe part.

We have seen a very strong quarter, this 35% growth in the Europe segment. Can you attribute how much will be attributable to the UK capacities and Netherlands capacities?

What can be the breakup of that?

Meet, the major growth that has happened is basically because of the UK capacity itself. The UK capacity got operational in the later part of the last year.

Our growth was majorly because of the UK. Otherwise, if we normalize the things, it is in the range of 11%

to 12%. Okay.

Understood. Got you.

Thank you. I'll come back in the queue.

Thank you.

Hi. Thank you for the opportunity, and congratulations on good set of numbers.

I have

Thank you, Abhishek.

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. Was this ratified or was this more of an impulse to, kind of a post from the President?

Any clarity on this?

Abhishek, there is no action on that, but everyday we all hear these things.

But Right now, it's 50% only? This additional 25%

Yeah, now is 50 50%, yeah.

Got it. Secondly, the Thailand tariffs are about 19%.

Is Golden Star still doing pretty okay, and will it be able to compensate for slightly moderating demand for basmati in US?

Jasmine rice, the Golden Star is doing very well. That's growing.

No issue on the growth side. Only this year also, the jasmine rice has gone up.

Maybe little impact on the margin side, but as far as consumption growth, that is very well-placed.

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?

Partly. Partly, partly.

All right. All right.

I'll get back to the queue. Thank you very much.

Thank you.

Yeah. 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.

There just wanted to check what is the update on our progress in terms of our foray in 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?

Regional rice is doing very well, Daawat regional rice, and internationally also. As far as LT strategy on the regional rice is that we will be only on the premium end of the market and not on the mass because margins are very competitive.

On that front, on that strategy, we're doing very well. We are well-placed in e-commerce, modern trade, and very very key outlet.

We are optimistic on whatever the business plan we have built on the regional rice.

Sir, can we quantify Yes. Go ahead.

No, you ask your question, please.

Would you be able to quantify what is currently in terms of tonnage, our sales in regional rice right now? Is it material?

Yeah. I think in India, we sell around ₹200 crores worth regional rice on annual-level basis.

In volume terms, sir, tonnage terms?

Sachin, can you get the

We will

Roughly 50,000 tons.

Roughly 50,000, and you can take the data from our IR team, and they will provide you quantitative. Roughly it is 50,000 tonnes.

All right, sir. That's it from me.

Thanks, and all the best.

Yeah. Good afternoon to the team, and thanks for the opportunity.

My most of the questions have been answered, I'm just left with one. I wanted to understand regarding your RTE/RTC business.

We have seen 2.5x growth from FY '21-'25, yet EBITDA margin remained negative at -9%. What scale or revenue threshold is required for this segment to break even?

Does management still feel this is a strategic growth engine? What's the argument?

Okay. On the margin side, where it will get breakeven, Sachin will give you number, but as far as our RTE business, the bigger business is in USA, 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.

That we have a good prospective. 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%.

On the numbers, I think Sachin can

As regarding the breakeven from a current level, once it crosses the 400 crore mark, there will be a breakeven in the EBITDA. Till that time, we will be in the investment phase, and there will be the investments that will be required.

We are optimistic to achieve in the next 3 years.

What was the next? Hello?

Yes?

What did you say next? Next year?

You have said next year?

He's saying breakeven will happen by when.

Next 3 years. For us, next

3 years.

No. Next 3 years.

It will be doubling in next 3 years, what we are expecting.

Okay. Fair enough.

Thank you. I'll jump into the queue.

Hi, good afternoon. Thank you for the opportunity.

I had a question regarding the market share in India and in Middle East. Particularly in India, we have

Sorry to interrupt, sir, but can you be

a

little more louder?

Yeah. Can you hear me?

Yes. Little louder will be better.

Yeah. 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. Last year, we had around 13 30% market share in basmati.

What can you just throw a light on that? Is this because of the price hike, or have we discontinued any product or something?

As far as the household reach, we have increased our household reach from 45 lakh to 58 lakh. 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. Overall, on the premium end of the market, we are growing.

Our household is also growing. Okay.

Regarding the Middle East market, can we just give a exact market share? Last year we had around That's a big market,

Okay.

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. 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.

Okay. That's

That's it. The plan is well-placed, yeah.

Sir.

That's really helpful. I'll join back in the queue.

Thank you.

Hello. Thank you for the opportunity.

Just had two bookkeeping questions. One was on your interest cost seemed to have gone up by 46% year-on-year.

What explains that? That is one.

The second one is, can you give the nine-month growth numbers for Golden Star business for revenue and PBT?

Damodaran, as regarding the interest cost going up, 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 which takes place. Last year itself, majorly in the part of this year, as the UK 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.

As regarding the Golden Star goes, the revenue growth in this nine months is almost a 2% growth in the rupee terms that I'm talking about.

Okay. In PBT terms, if you can share?

The PBT terms, we have made a PBT margin of almost a 7% PBT margin.

Okay. You said there was some margin decline, can you give a same number for last year?

Almost in this last year, it was almost a eight 8.5% last year. It declined to almost 6% this.

So 2.5% decline. Yes.

This is attributable primarily to jasmine rice prices increasing?

Correct. The input cost going up, so that resulted.

As Ashwani ji in the initial talks talked about the jasmine input cost being increased.

Sure. Thanks.

That's all from my end. Thank you.

Thanks for the opportunity. What is our gross and net debt right now?

I am excluding the FDR that we have kept for the insurance claim, our net debt is almost ₹180 ₹1,180 crores.

Has there been improvement year-on-year or it is same? Slight bit

it has decreased from the last year, our debt positions have decreased.

Regarding the notes to your accounts, it is little confusing. We have received this 26,000 crores from the insurance company, right?

The case is still going on.

No. Case to is all

26 crore 260 crores. Ha,

correct. That is 260 crores.

Yes, we have received that amount, but against that, we had to give a bank guarantee. Still it cannot be utilized, we have given a margin against the amount received.

It is in the form of FDR.

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.

Then they went to Supreme Court. Supreme said give the bank guarantee and take the money.

We have taken the money. We have given the bank guarantee against the FD, the same amount.

Hopefully, we will get the verdict in the coming 2, 3 months from the high court, which is pending there.

Right now we are earning interest on it, but we cannot use that money.

That's right. Still the interest hasn't been recognized.

We are not recognizing that interest in our income. We are accruing, the amount is being accrued, but we are not recognizing it in our income.

Okay. Regarding this tariffs at US, if I have understood you correctly, whatever you bill to your US subsidiary, 50% on that value is charged, not at the price at which you sell to your customer.

Is that the understanding correct?

Correct.

Sir. Thank you, and all the best.

Thank you, Vipul bhai.

Sir, my question is, was the tariff pass-on smoothly or there was a resistance from the customer, or you see a slowdown?

No, there is always resistance from the customer, and that's what I said, we have majority pass-on. There is a big resistance, but fortunately, being basmati

only

from India.

Okay.

Royal is a very strong brand, very high quality brand.

Sir, if there's 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?

That's what our expectation is, yeah.

Okay. You don't see any demand destruction?

No?

In January, there is a little bit slow down as compared to last year, but till March, the things will be more clear, yeah. We are billing to them now?

We are sending still the goods at a higher tariff? Touch wood, the business doing very regular business, no.

Okay. Sir, any comments on the growth outlook for the next year?

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.

The crop availability won't be a problem going forward if we can do a double-digit growth? Availability of crop won't be a problem, no?

Doesn't look like.

The input prices have gone up, but availability won't be a problem.

We have identified our risk and we keep evaluating. We have our farmer extension team, which work with the farmer that how they can improve their productivity, how they can overall increase their income.

We are very well-connected on the farm side also. We don't see, at least, in the next 10, 15 years So farmer is making better money with lesser the water and all these things.

The state government is also promoting because India is sitting in very heavy non-basmati stock. State and center is promoting the farmer to grow basmati.

Okay. Sir, are we supplying to Iran?

We are not supplying to Iran, no?

No, we are not working with Iran, yeah.

We won't be facing that another 25% tariff? Because if we are not supplying the basmati to Iran.

I think we have not got any intimation. Ha,

understood. Right.

Thank you, sir.

Yeah. Hi, sir.

Thanks for taking my question. Sir, firstly, in terms of your guidance for Europe, you have mentioned that the 5-year target is 100 million in euros pounds.

In that regard, I wanted to understand that our revenue is around that number, right? Does this statement mean that the incremental revenue will be 100 million in 5 years?

I don't know, Harsh,

What is the number that you have mentioned, Harsh, for the revenue?

16, yeah. Slide number 16 where you have given nine-month FY '26 segmental breakup of India, North America, Europe, and Middle East, right?

Revenue mix and YoY growth. In Europe, you commented that a 5-year target for revenue is 100 million pounds, right?

Our current business itself is

No, that is UK. No.

The UK is at the moment is 45 million. That is the projection for the UK, not the complete Europe.

We have separated UK and the EU, the continental Europe,

sir. UK standalone would be what, 45 million pounds going to 100 million pounds doubling in 5 years?

Correct, Harsh. That is

what getting planned. Second thing sir, on the tariff thing, right?

Now you said that we already have 2, 3 months of stock in US, right, because service levels have to be very high. For the stock which we send there, we pay 50% tariffs, right, already, which we have.

Now in an event, let's say if the tariffs were reversed, right, for the existing inventory which we have there, will it be a one-time knock for us?

It depends, Harsh. As the time will tell.

As I said, the customer is most important. At that time, we will take call.

My question is not on the demand part. My question is basically we have paid 50% tariff, right, already.

Yeah. That's the risk.

That depends on the competitive landscape. That is the risk we are living with.

Yeah.

Okay. Got it.

Yeah.

Sir, thirdly, one thing in one of your slides where you kind of show all your brands, there is a new brand called Hadeel, right? Is this brand specific for Saudi Arabian market?

This is a brand for Saudi. That's a mainly to the food service.

Okay. Yeah.

To the food service,

yeah.

Yeah.

Food services, okay. It's basically for HoReCa layer?

That's called Daawat Hadeel, yeah.

Correct, yes. It's mainly for HoReCa segment then?

That's right. Sir.

Thank you.

Thank you, Harsh.

Thanks for the opportunity. My question is on your domestic sales.

There has been news articles which mentions about basmati consignments which are stuck at Indian ports, and some rice millers have noted that the price drops have happened in India. Iran is a key export market.

Have you seen any price declines in your basmati sales during the quarter? Do you see the slowdown in Iran exports leading to any sort of oversupply in domestic markets?

On the price side, it's other way around, there's a hike in the commodity price. As far as Iran is concerned, the data we are seeing is it's growing, 11% from India to Iran.

Historically, we have seen this 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 side.

Sir,

which period are you referring to for this 11% growth in Iran?

It's a nine-month data.

Okay. All right, that would be it from mine.

Thank you.

Hi. Good afternoon, sir, and congratulations for good set of numbers in a difficult environment.

Couple of questions, just follow-up to what another participant has already asked this question. How much is the gross margin on let's say US number?

Currently you have a overall gross margin of 35-odd percent. In USA, it will be more like 40%, 45%, or it's roughly the similar range as the rest of the business?

Similar range.

Okay. Just to understand this right, sir, you have ₹100 inventory going from India to USA and you sell it say ₹150, that's how the 33% gross margin comes in.

At ₹100, you've got a ₹50 duty, right,

because

that's the input. Your cost basically goes to ₹150, right?

You're selling it now from ₹200 now, because you're passing on that ₹50 out there. That means your margin has gone down to 25%.

Am I understanding it right, or what is the gap in that?

I think you can get in touch with our IR. They will explain you on how it works here.

Okay. On the other side, how much is the end price for the customer gone up by in USA in terms of rice?

You would be obviously in touch with the customer, how much is the end price increased for the customer?

Roughly 25%.

Roughly 25%? Okay.

Third question on Golden Star, how much is the revenue this quarter? Last quarter, I think it was around 350-odd crores.

Is there a similar ballpark this time also?

It is, as I've stated, in this nine months, the sales in the Golden Star is ₹486 crores in the rupee terms. It is more or less monthly equally.

Monthly around 100-odd crore? Oh, sorry, not even that, it's lesser than that.

Exactly.

The Golden Star price also has gone up by around 20%, right? Because of 20% tariff from Thailand.

That's on the COGS, maybe lesser a little bit.

Okay. On the COGS, it will be lesser.

Got it. 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.

Sure. Thank you.

Yeah. Sir, you mentioned about the Hadeel brand, which is HoReCa for Saudi business.

Our normal branded business you mentioned is around 35 crore of sales, which means that in this quarter, December quarter, the sale is of around 7 crores only. Is that correct?

For

Saudi business, we said the branded business is around 35 crores. So

No, Hadeel is our HoReCa brand, and from Saudi we achieved revenues of 35 crores. This means sales is 7 crores from others.

That is not so, Amit. If you look at the overall sales in the Middle East as such, what Ashwani ji told, Hadeel is a HoReCa brand in the overall Middle East region.

It is not specific to a Saudi itself. It is for the whole region.

If you count only the branded revenue, H1 was 28 crore and nine months is 35 crore. For branded revenue from Saudi.

Ha, the branded revenue if you talk about, it is 35 crores in this nine months and it was 17 crores last year.

From last year, yes, it's almost double.

Currently it has doubled as compared to the last year.

Number to Amit, aap you'll get the clarification later. Basically, we are not We are investing time and on the strategy and everything for the last 1.5 year, 2 years.

Now, all the things are working. We are positive on things.

On the number clarification, we can

Amit, yes,

you're

right. Right on the I understand.

Brand What I want to understand, Ashwani ji, is that 7 crore in a Saudi market, would it be considered as a small number for a quarter?

I think on Saudi, we started with food service and wholesale. Now, on the Daawat brand, the journey has started, the route to market and everything has been finalized.

In the coming time, you will see a change in Daawat sales, yeah.

Okay. Okay.

For regional rice, you have said that we have around 200 crores of sales. I think the new capacity is coming in the February, few days from now.

What is the likelyhood of the total revenue at full potential? Obviously, it will take couple of years probably, but just to view That

That facility is a packaging unit. We are building these all supply chain infrastructure to meet the future demand.

I think the capacity will be sufficient for the next 2 years.

Okay. In terms of revenue, what it can contribute?

Roughly, I will say 200 crore more.

Okay. Okay.

Yeah.

Yeah. Sir.

Thank you.

Yeah. Thanks for the follow-up.

Ashwani ji, you mentioned that the new RTE capacity in USA, right, that number in terms of volume, it can do 1.5 or 15 million pieces a year?

15 million, Harsh, pouches volume. Yeah.

That means roughly, yeah,

yeah. Roughly that would mean how much of, let's say, additional revenue at current realizations?

I can give you a ballpark number is $20 million revenue will be more, yeah.

$20 million?

Yeah.

Okay. Okay.

This Sachin ji, 486 crore Golden Star revenue for nine months, right?

Correct. Correct.

This is for the period of nine months or this is for the period of our consolidation?

Yes, you are right. It is the period for the consolidation.

Consolidation

Consolidation period.

Consolidation, right.

Okay. Okay.

Which will basically be more than I think 5 months, right? Roughly 5 months?

Ha. If you talk about the nine-month number, it is 658 crores.

658 crores. Okay.

I was confused in that. Last year, we closed FY '25 at what revenue, sir, for Golden Star?

In the In the dollar terms, it is around $130 million. We closed around that dollar numbers.

For the full year.

Okay. Okay.

Thank you so much.

Yes?

Thank you. Am I audible?

I was trying to work out the price that you have been able to sort of pass on to the US consumers as the result of the tariffs. 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 US consumers.

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 there a difference?

Be in touch with our investors, we will give you maths. Overall, the business is good.

Till time, the margins are intacted and all these things,

yeah. Sure.

My other question is so I've seen that our sales in the Middle East has kind of dropped year-over-year by about 11% nine-month figures. Any reason for that?

Have we taken away any category there, what's our strategy to get back the market, get back the revenue growth?

Till time, the strategy is very organic. We have roughly in Middle East around 50,000-ton base, and we will build it year-on-year by growing 20%.

Okay. That doesn't explain why the sales went down by 11%.

A 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.

Got it. Got it.

Our margins overall has become better, and we continue to work on that only?

Correct. Correct.

Got it. All right.

That is it from my side. Thank you.

Thank you.

Hello?

Haan ji, Aman ji.

Thank you very much for the opportunity to allow me to ask question. Congratulations to whole team for the good set number.

My first question is regarding margin management. What is management strategy to improve the compressed PAT margin which declined almost 5.6% from 6.39% YoY?

Are the pressure transitory or structural?

Aman, the pressures are very, very, we feel is temporary because of this all this disruption geopolitically. The goal we have given what advised that on the ROCE terms, we are in the range of 20 and we wanted to move 23.

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.

Structurally, we are very well-placed. It's a kind of geopolitical risk which is happening for the last 2, 3 years.

Fundamentals of the business are very strong.

Right, sir. Okay.

Sir, my next question, if you allow. Looking to the potential fluctuation in basmati rice price, 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?

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.

Where we are a brand leader, there we pass on. It depends.

It's a very, very strategic geographically. We use both the strategies.

Depends on geography.

All right, sir. Right, sir.

Understand.

Thank you.

If you comment, is timahi mein FII ne company mein se apni matlab participation thoda kam kiya, jabki mutual fund has increased. To is silsile mein institutional investors ki bhavna aur FII ka bharosa bahaal karne ke liye kuch comment from management?

As I just said ke LT Foods is very well-placed. If you see in the consumer space, LT Foods is growing better than the overall competitive FMCG space.

That's the fundamental. All fundamentals are very, very strong in terms of brands, in terms of the category growth.

We are very well-placed. We are very confident that whatever the guidance has been given to the market, we will be there.

Sir. Helpful.

Yeh financial year '26 ke liye khoob khoob matlab aapko advance mein dhanyawad accha dene ke liye.

Thank you ji, thank you. Bahut bahut dhanyawad aapki best wishes ka.

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 relation partner, Ernst & Young, for any further queries that you may have, and they would connect with offline.

Thank you. Thank you all.

Thank you.