Thank you, Steve. Good afternoon.

Thank you, everyone, and a very warm welcome to LT Foods 4Q FY26 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 brief 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 in this quarter. Thank you, and over to you, ma'am.

Thank you, Meet, for the introduction. Along with other team members, we have Mr.

Ritesh Arora today also on the call. He's the CEO for the India and Far East business.

Good afternoon, everyone, and thank you for joining us today. On behalf of the management team, I welcome all our investors and valued shareholders to discuss the performance of LT Foods Limited for the fourth quarter and full year ended March 31st, 2026.

Please note that any statement made or discussed during this 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 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 investor section of the company's website.

Financial year '26 has been a year of strong execution, resilient growth, and continued transformation into a global branded FMCG company. Despite the dynamic external environment, we have delivered solid financial performance while continuing to invest aggressively in the brand, innovation, and global expansion.

I'll just cover industry tailwinds and headwinds in the financial year '26. Before I dwell into our performance in detail, let me briefly touch upon the broader industry context.

The global rice and the specialty food industry continues to benefit from structural tailwinds. The Indian FMCG market is expected to grow at 11% CAGR, driven by increasing consumption and improving retail penetration.

The global basmati and specialty rice market is witnessing steady growth of 7% to 12% across geographies. We see rising premiumization trends along with increasing global demand for the ethnic cuisine, especially in North America and Europe.

We have experienced expansion of South Asian diaspora, which is driving sustained international demand. In addition, consumer preferences are evolving towards health and organic product products, convenience-led food categories such as ready-to-heat and ready-to-cook, traceability, sustainability, and premium branding.

These macro tailwinds strongly align with LT Foods' long-term strategy, but there were there were a few headwinds as well, such as geopolitical issues, US tariff, increased freight, and increased input cost. Now, I cover the financial performance of the company.

Coming to our financial performance, the revenue including other income grew to ₹11,023 crore, which is up by 26% on year-on-year basis. Gross profit increased to ₹3,692 crore, the normalized gross profit is around 35.3% excluding US tariff and change in the shipment term.

EBITDA rose to ₹1,236 crore. Profit after tax stood at ₹625 crore.

It is important to note that the normalized revenue growth was 19% and EBITDA margin moderated to 11.8% excluding US tariff, reflecting higher brand investments and strategic spending. We continue to strengthen our financial discipline with our working capital days improved to 176 days versus 196 days last year.

Net debt remained controlled with net debt-to-EBITDA at 0.66x and net debt-to-equity at 0.16x in financial year '26. For the fourth quarter, the revenue grew to ₹2,938 crore, EBITDA stood at ₹300 crore, and PAT was around ₹136 crore.

The reported margins for financial year '26 and Q4 '26 have been affected because of the US tariff pass-through, brand and marketing investments, LT Foods UK being in investment phase, and organic segment under remodeling. Our core business Now, I cover the segment and geography performance.

Our core business continues to perform strongly with basmati and the specialty rice contributed 88% of the revenue, delivered a 29% revenue growth in financial year '26, normalized growth 21% excluding the US tariff, with revenue in tune of ₹9,742 crore, reflecting the enduring strength of our strong brand equity and deep trust consumer place in our products across the world. The segment maintained a healthy EBITDA margin of 12.3%.

We observed strong growth across India, North America, and Europe. We continued and gained our leadership position as number one brand basmati brand in North America with a strong share in the US imports and Canada market.

Our organic foods and ingredients segment grew by 9% and crossed ₹1,016 crore in the revenue in financial year '26, building on over 30 years of pioneering Indian organic exports. With over 110,000 hectares of certified organic farmland, 80,000 farming family association, and a global partner base spanning 25 countries, this business represents both a significant commercial opportunity and a profound expression of our commitment to responsible sourcing.

We are glad to share that we hold 12% share in Indian India's export of organic food. However, this business segment is under stress and we have strategically remodeled it for the next phase of the growth in which we have built the capacities, which will take time to get fully utilized, and also entered into the CPG business.

Further, the EBITDA is also currently under stress due to currency fluctuations and commodity price pressure. Our ready-to-heat and ready-to-cook segment business has grown 2.5x over the last 5 years, reaching ₹187 crore in financial year '26 as consumers increasingly seek convenient and healthy meal solutions at home.

Innovations like Biryani Kit, Cuppa Rice, Royal Ready to Heat range are resonating strongly with time-pressed, flavor-forward consumers in India and internationally. The demand momentum across key markets remains strong.

However, certain growth opportunities could not be fully serviced due to capacity constraint in RTH platform. The enhanced capacities are expected to become operational from quarter two of financial year '27.

Our India business continued its strong trajectory, ending the year with 10% value and 12% volume growth, a testament to the resonance continues to build with Indian consumers. What is particularly encouraging is the quality of this growth.

Our quick commerce and e-commerce channel grew in excess of 45%, firmly cementing our leadership on key digital platforms. The premium segment grew at 2x the pace of the overall consumer portfolio, reflecting the power of the premiumization trend that is reshaping India's food landscape space.

Premiumization drove a significant increase in gross margin, which was reinvested in the further strengthening of our strong brand equity, enabling us to scale our marketing budget by 2x versus last year. Our household reach in India rose to 64.4 lakh as per the Kantar, a 22.8% expansion over the last 15 months.

Our market share in India stands at 23.7% as per the Nielsen report. Besides, the new innovative offerings like Daawat Brown Organic range, the limited edition of Daawat Saffron Basmati, and Daawat Thai Green Curry curry rice kit are gaining strong traction with our consumers.

Our investment in the new facility in Raichur, Karnataka further strengthens our value chain from farm to fork as we deepen our regional rice play. Also, the North America.

It remains our largest market, contributing 48% of our revenue mix in financial year '26 and delivering 53% growth, 9% is the normalized one excluding the impact of the US tariff. Our flagship brand, Royal, commands over 60% market share, and Golden Star continues to be number one Jasmine rice brand in USA.

Europe continued its growth journey, delivering 34% revenue growth in financial year '26 and advancing meaningfully towards our five-year target of £100 million in UK revenue. LT Foods Europe was conferred with the New Entrant Award for its expansion to the UK market at the 15th Annual Department for Business and Trade Investment Awards.

Separately, extra long basmati recognized as the Product of the Year, Daawat Extra Long Basmati recognized as Product of the Year in UK, an honor driven entirely by the UK consumers. We are building the foundation for a sustainably large European business, and we remain focused on brand building, distribution expansion, and portfolio diversification across the region.

In the Middle East, we continue to further strengthen our position. We would like to highlight that despite the ongoing geopolitical conflict in the Middle East, including the heightened tensions arising from the Iran situation, LT Foods has demonstrated business resilience with no material disruption to our supply chains.

During the year, we expanded our presence in Saudi Arabia with with ₹53 crore in revenue in financial year '26 and successfully launched Mehran Basmati Rice in Saudi Arabia. Apart from this, we are witnessing some near-term pressure arising from US import tariff-related developments.

While the input cost has increased, we have to see how it's going to impact us in the near future. Going ahead, premiumization, category expansion, route-to-market excellence will continue to be engines of our growth while brand in India, while brand investments, distribution expansion, innovation will drive our international performance.

Our strategy going forward remains very clear and focused: strengthening our core business by expanding our global market share in basmati and the specialty rice and drive premiumization and price impact; accelerating new categories by scaling RTH, RTC, and other such products; we shall remain focused on margin improvement by focusing on operational efficiencies, cost optimization, and build economies of scale; improve mix mix towards premium and the branded offerings. Technology and digital transformation remain at the core of our capability-building agenda.

As we scale towards our next phase of the growth, we are committed to building a smarter, more agile, and future-ready organization that leverages technology as a competitive advantage. We expect for the future, we expect continued double-digit growth supported by global demand and new product launches, distribution expansion.

Margins are expected to gradually improve as brand investments normalize, scale benefit come through. RTH, RTC, and organic segments will continue to outpace overall growth.

Now, I would we would like to open the floor for question-answers, please.

Yes, hi team. Thank you for the opportunity.

Just wanted to check, what for FY26 what was our volume growth in the US and also for the in the US geography and also for the basmati and specialty rice segment volume growth for FY26? What do you think was the extent of impact on this due to the US tariffs?

That's my first question.

Yeah. The volume in the overall basmati and specialty segment in this year-on-year basis grew by almost 19% this year.

As regarding in the US as such, the US volume, if we include the Golden Star revenue, that also increased by 30%, 35%.

Sir, what do you think was the impact on this volume growth, if any, from the US tariffs?

This was an opportunity for us, being the company which has on-ground operations, and with a better service level, we have been able to acquire more consumer, more customer by giving them the service level. In this whole disruption, which was a big disruption for us, the idea was to keep the service level robust, and that has really helped us to grow our customer and consumer base.

Although it has impacted on our margin because partly we have consumed and partly we have passed on. Broadly, acquiring consumer, acquiring customer was a big achievement for us.

Right, sir. Secondly, you have indicated a higher, stepped-up investment in your UK business where we have a five-year target of scaling up.

Just wanted to check, today, how much is UK salience for Europe as a percentage of revenue? Related on the domestic side, just wanted to check what is our distribution reach now?

I believe it was about 170k in December, but what is that number now?

Sachin can add into this. This year, UK is roughly £45 million revenue.

Correct, sir.

The goal is by 2030, we will scale it to £100 million. Distribution.

India distribution. India distribution is flat at 172.

Flattish, hasn't grown much in the last quarter. We've seen improvement in our market share compared to last year same quarter.

All right, sir. Lastly, just a bookkeeping question, if I may.

When I look at our revenue growth for FY26 for India and US, which are together about 80% of the business, it's at 10% for India and about 8% to 9% for the US. Our FY26 revenue growth for the basmati rice segment, which is about 90% of the business, is at 21%, both normalized.

These don't seem to be adding up. Is there something I'm missing here?

You need to There are two kind of accounting treatment that we did this year. One was if if we normalize that, one was the tariff, the custom tariff, and the second was was the Golden Star.

Because the last year, the Golden Star, we had a JV. This year, the we have acquired that 49%, now it is a fully wholly owned subsidiary.

Both the numbers, if we tie it up, because there in the in the in the US one, in the US one, we had normalized the Golden Star as well as the tariff, whereas in the basmati segment, the tariff was there. Once you do both the things, it will tally.

Understood, sir. Thanks, and all the best.

Hi, first of all, congratulations for a great set of numbers. I wanted to just have a guidance on the margins part.

Going forward in FY27, what are the gross margins do we expect considering the rise in the input cost and also the EBITDA level margins?

If you talk about the gross margins, the gross margins will be more or less in the lines what we have done in the 25-26 because this movement of CIF to C&I, that will remain in this year as well. That will be there.

Yes, somewhat the tariffs and other things, because now the tariff has normalized, from 50% it has gone to 10%. We expect the gross margins to be within the range of what was there in the last year.

Last when I checked, your FY26 gross margins remains different from FY25. On a absolute basis, if you can give me a number of the range, that would be more helpful.

If you look at my gross margins in 24-25, it was almost a 24.5% 24.6%. It reduced on the 100 basis point.

This reduction in the 100 basis point was mainly because of the US tariff and the movement from CNF to C&I. This margin range of 33.5% or 33% will remain in the next financial year as well.

Perfect. The EBITDA margins?

EBITDA margins, because this year the tariff was there, and there was certain passing of the timing and other things were there. The tariff had an effect on my EBITDA margins.

Likewise, there was the organic range, the inventory built up, and the spends was there. If these situations relatively are not there and things remain such, we will surely improve on the EBITDA margins by almost on that levels.

We were at 12% in the previous year, we are eyeing that levels.

Whatever the disruption has come, we have accounted for till time. As Sachin said, we are confident that we will be in the range of 12%.

As we are living in a very disrupting world, we are confident that we will be in this range.

Perfect. That helps.

Another question lies around the growth guidance. If you can guide a number for different geography-wise and your overall basmati segment-wise.

Also market share for say going forward if the basmati industry grows by say X%. What of total geography, what percentage of market share does LT sees of the global

That we have tried to put all the information on the presentation. If you go through the presentation, you will find these numbers.

The guidance for the growth that we maintain. We are eyeing at a 10% to 12% of growth on the long-term basis that we are eyeing, and we remain to that growth levels.

Organically, we should grow in that levels.

Perfect. Got it.

Thank you.

Congratulations on a good set of results. I wanted to ask what is your inventory by age, and how much of your inventory today is aged 12 months or more versus the relatively fresh one?

Inventory aging also, it depends upon the different products which we sell, and all my premium products, if you talk about the premium and certain other range that we have. The average inventory is around 190 days to 200 days of inventory which we hold.

There are certain premium where we age more than 18 months and 2 years of inventory aging that is required. On the various products, we age accordingly.

Right, sir. I just wanted some clarity on how much of your volume is aged beyond 2 years if you can tell me that.

Yeah. Pooja, can you be specific on your question?

May not be we have the answer right now, but you can mail it to the investor relation. We will definitely get back.

Sure, I will do that.

Thank you.

Yeah. Fine.

Thank you.

Hi. Thank you for the opportunity.

My question is on payable days. I am seeing from FY21, we had trade payable days at 45 days.

Now it is touching almost around 100 days. I wanted to know what's the reason for it and is the 100 trade payable days now the normal payable days for the future or is it going to reduce like it reduced to 101 in FY26?

These payable days of 100 100 days, which is there in the financial numbers, these will remain as such. We have made certain arrangements because our practice of buying is 60% to 70% we buy in the season and 30% to 40% we buy on the other seasons.

The payment days, when we buy in 30% to 40% in the other part of the season, that defers. Having said so, this payable days of 100 days will remain in the future as well.

Okay.

Thank you.

Thank you. Sir, vis-à-vis the ready-to-heat health and convenience segment, while, of course, Daawat Cuppa Rice discontinuation has impacted the sales growth, but overall looking at the number, the size, our growth number, do you think is fairly low, or what is our internal target?

That's one. Second, on the same RTH and RTC segment, our gross margins are in the line of 32%, 33%, which is similar to basmati and specialty rice.

Considering that it's a convenience segment, should it have a higher gross margin, or if anything on that if you can add?

Basically, RTH segment is led by our US geography, which is very big in this category. The rest of India is very small for ready-to-heat, and bigger in ready-to-cook, where we are putting all our efforts, which is Daawat Biryani.

That we are getting good response. As far as RTH is concerned, our plant got delayed, and that's how the growth is little disruptive.

We are confident that by July, the production will start, we will be back on the track of growth. As far as margins are concerned, you're right.

We are in the range of 35%.

No, that too is basically on basis of accounting treatment. Because the initial period you do the more of sampling and sales promotion.

There is more spend on that, and that needs to be netted off, and you need to have the net sales. If you remove that, our overall GP margins in this segment on the basis of what we are making the sales, it is almost 40% plus in this segment if you remove the sales promotion and other the sampling expenditure.

The filter is, whichever RTH or RTC segment we should get into, the filter is, it depends on the size of opportunity. It will be in the range of 30% to 40%.

Okay. Okay.

What's our internal growth target of this segment and when do we have a break-even target?

As far as the internal aspiration we have set for this business, RTH is very big in USA. This year, we have done $15 million.

Another plant has been set up, which is late. In the next 2 years, we will be $30 million, which is ₹300 crore.

On the ready-to-cook, which is India, that on the size of we are expecting by 2030, we have set up ₹100 and Ritesh, can you add?

₹120 crore of revenue by 2030. So In India, we are already the category leaders when it comes to biryani kit.

We have more than 60% to 65% market share on different platforms. Over here, the investments are going on for category creation.

We are therefore very bullish on building this category up.

Okay. Okay.

Any break-even target that you would want to add?

It will be in next 2 years. As Ashwini has told, in the whole of the category, our break-even target, that remains the same.

Achieving a ₹400 crore in this segment will make us break-even in this segment. That's our target.

Yes, one year because of the capacity constraint, our target has moved, but otherwise we are on line with achieving that target.

Okay. Overall, our inventory days are down, have we purchased less this year as far as our inventory is concerned?

Not really. Not really.

We have not reduced our inventory. Yes, as we compare with the inventory days, it has reduced by 28 days.

Somewhat, this represents the tariff as well because the tariff impact and other things were there. Overall the inventory, we have maintained that inventory levels of almost a 250 days of inventory which I am sitting at as on March 31st.

Okay. Any general comment on El Niño and outlook of basmati rice production for the upcoming season, anything on that, paddy prices for next year, anything, any comment on that would be helpful.

Yeah. As far as farmer's economics point of view, last year, the paddy price were very high.

We expect that the farmers will grow more. As far as the impact of El Niño, we are watching.

Historically, basmati is mainly grown in the region where there is other way of irrigation also. In the last 40, 50 years, we have not seen any impact of the rainfall shortage on the basmati.

Rather, farmer prefer then grow basmati because it consumes lesser water. We are positive that the production of basmati will grow this year.

I think we will be more clearer in 1.5 months.

Okay. On the Middle East front, while, of course, Saudi has contributed ₹50 crore revenue this year, new markets, other than that, our Middle East is not growing.

Is that correct understanding?

Yeah. That's correct.

That's a very tough market, very strong entry barriers, and we have chosen our route to market where we should not lose money. We will not invest money much on that.

We are finding other ways of growing Middle East. Hopefully, that should work.

Okay. Thank you.

Thank you and wish you all the best.

Thank you, sir. Thank you.

Hi, am I audible?

Yes, Mr. Unni, yes.

Hi, sir. I would like to know about what is the revenue contribution of Golden Star specifically and their margins?

As regarding the revenue contribution, it is almost contributing my 10% of the overall revenue in this segment. Currently, we are not tracking its EBITDA margins as such because it has been merged with my financials.

The margins of this year is, as we compare, is relatively a 1% or 2% lower than that of the last year.

Okay. In Q4, what will be the revenue for Golden Star?

It's very proportionately divided, $25 million, which is ₹250 crore.

Okay. One more question, sir.

What is the current situation of raw material prices?

For the coming crop?

Yes, yes.

It's very early because in 1.5 months, we will be clear what is the kind of production being forecasted and what will be the impact on this disruption which is happening in the Middle East. I think 1.5 months, we will be more clear, but broadly, if you ask me, the prices will not come down much.

Okay. For Q4, what was the situation?

In terms of prices?

Yes, yes, yes.

The prices have gone up very high. From the base level, if I talk about whatever was the opening price, roughly 25% to 30% prices have gone up.

Okay. Okay.

Sir. Sir.

Thank you.

Thank you for the opportunity. Just one question from my side on capex.

I see that they have spent around ₹350, ₹360 crore. Can you just give me a breakup of this capex?

That's from my side.

The capex spent in the last year is almost ₹350 crore, and in that the major capex that has went is basically in the lines of the US. We have purchased a land and we have invested in the RTH facility.

In the US, that's the major capex that has went up in the last year.

Land, we are building big warehouse in Houston.

This ₹350 crore is entirely for that?

Major one is it is in that. Rest is in the UK one, the packaging facility, because we are in the growth phase and we are installing that additional packaging facility in that.

Rest are certainly in India. India, we have purchased certain portion of land and to build new warehouses in the Indian region.

That has gone in that capex.

It's a mix of all territory, but major is which is Sachin's explained on the Houston land purchase and RTH.

Sure, got it. What's the outlook for FY27 or the capex spend that's going to come through?

Will be in the similar lines. We are investing to create certain more capacity in India, and then the land has been purchased, and warehousing and some asset we are building in Europe on packaging and all this.

Major is in India and USA.

Sure, okay. Just one question on that green acquisition which kind of fell through.

Will we be re-looking at it now considering the changes of circumstances?

As a strategy, we always look for opportunity which has a strategic in nature as far as LT Foods framework is concerned. We keep on looking that kind of opportunity.

Okay. Sure.

Just a question on the consumption side, specifically on US, are you seeing any impact in terms of consumption at the retail level or of the war and inflation, anything like that?

As far as demand side is concerned, we have not seen any impact, and historically also because being the food and US, whatever the income is, that's the last thing to get impacted.

Sure, that's helpful. Thanks.

Thanks and all the best.

Thank you. Thank you.

Hi, guys. Congratulations for the good set of numbers.

My question is that in respect to the top-line growth, what's the top-line growth for this year in USA as well as the sales growth for this year?

Eklavya, sorry, can you repeat your question, please?

I just wanted to understand the sales growth in USA for this year, financial year '26, and as well as the volume growth in the USA.

Otherwise, it is stated in my investor deck, uploaded one. The USA in value terms is grown by almost 53%, but that includes the tariff as well as the Golden Star in this.

In the volume terms, as I stated, it is a 38% growth in the US, that was there in the volume. If I reduce the Golden Star, there is a growth of in volume terms 8%.

There's a discrepancy in the volume and the sales growth. Does the sales growth also include the forex, say forex gains, as you have seen that the dollar appreciated a lot in the last one year?

Does the sales value include that also, or the contracts used to take place at the very initiation of the year? How do you used to take this?

No, no. The yes, it has a dollar impact, dollar depreciating, because we are reporting in the Indian rupees and Indian rupee has almost depreciated last year.

It has an impact in the rupee terms,

currency We're importing in the US in the INR, not in the US?

Yes, we are reporting in the rupee terms now in India. It is a listed entity.

No, no, the contracts used to take place in the US, right? In the US dollar, whatever you are selling in the US.

We do a yearly transfer pricing with USA, and as a policy, we hedge ourselves by 50% to 60% every time. There is a little bit gain which was unhedged and we had the gain in this of forex.

Okay. Just a follow-up question.

If that appreciation of dollar hasn't been happened that much, what could be the impact in the sales volume growth as well as especially the sales value?

Normally, what happened, as a strategy, international strategy, we cover the raw material also roughly 70% to 80%. What we have seen, if rupee depreciates, then the local cost also goes up.

Inflation also cover that. More or less, if you see, if your question is around that, if this rupee has not depreciated, then the profit remain the same.

The answer is, then inflation in the commodity also have not come.

Fair enough. Thank you for answering.

Hi, good afternoon, everyone. Thanks for giving me the opportunity.

I was trying to find a mention about the freight cost, the recent impact in the last quarter. My question specifically is, by how much percentage has the price increased for the freight from Q4 FY25 to Q4 FY26?

Has there been any disruptions in shipping through the conflict zone?

Mainly the disruption, Sachin, you can add into, the Europe has been the most disrupted. The prices have gone up.

In US, another market, at the moment, there's not much disruption in freight as compared to last year. Middle East, which is not our big business, the prices have gone by 10, 15 times.

10, 15 times?

Dubai was $200, now $2,200. Jeddah was $700, $800, now $2,600.

It depends. There's a big disruption in the delivery also in the Middle East.

Understood, sir. Another question if I may, please?

Sure. Sure.

In percentage terms, how much is the change in the realization per kilogram of our main brand Daawat in India and then the Royal brand separately in the US? I'm asking this in context of pricing power.

Ritesh can tell that what is the quantitative growth and what is the value growth.

In the last year, both the quantity and the value growth is almost at par, but we've seen improvement in our product mix. Our premium, our most premium SKU saw 2x growth compared to the whole consumer pack business.

From that perspective, we're working on improving our product mix, which drives better gross margins.

Okay. Thank you.

That's all from my side, and my good wishes and very best luck to the company.

Thanks for the opportunity. Sorry, I was slightly late in joining the call, and this might have been discussed.

Sir, can you share what is the trend of pricing or realization in the international markets? Is there a price increase we have seen for basmati?

As far as domestic price are concerned, that has gone high from season 20% to 25%. As far as international price is concerned, that the deal is all are done 80%, 85% in the season only.

Whatever the 10%, 15% left, trading is left, that has seen 15% to 20% higher prices than the season price. I hope that answer your question.

Yes, sir, very much. Sir, the domestic price like you mentioned have been a significant increase, 25%.

Will that only suffice to take the hit from maybe higher procurement price this year or will we be able to improve our gross margin because of that?

Sachin, if I understood correctly, prices of paddy has gone up, that's the point?

Yes. Cost has gone up, there will be further improvement in the gross margins in the coming years.

In absolute term, the gross margin will be more, yeah.

Okay. Okay.

Thanks, that's all from my side.

Hi, everyone, again. I've requeued myself to ask another question which I forgot earlier.

Regarding the insurance case that was going on, in simple terms because I'm a individual investor, I don't understand the nuances of the legal terms, but in simple terms, if ₹100 was expected to be received including the interest over the years for the Bhopal case, how much is it already on the books and how much more is expected and likely when?

I will simplify to you. The lower court and as well as High Court and Supreme Court has asked insurance company to give us money against bank guarantee.

That we have got, we have given the bank guarantee. In accounting, no accounting has been done whatever the gain is, like our books, 136 is outstanding with the insurance company where we have got 250, but we can't do the accounting till the final verdict will happen, which is in the June.

I hope that you get it.

Yes, sir. It greatly does answer my question.

You mean to say if that, sir, is the amount in an escrow account?

In fact not in an escrow account, we have that money. It is the court that has asked for the bank guarantees against that amount.

We have that amount. Because the bank guarantee was to be given, we have deposited a FD amount equivalent to the bank guarantee amount.

That is basically a FD account. That is

Very well understood, sir. Very well understood.

Thank you so much.

Thanks for the opportunity again. I just wanted to have some guidance on the going forward capex.

If you can guide me a net asset turn figure or say capex as a percentage of sales figure, because as we keep on growing at a rate of say 14%, 15%, we'll have to have more capex. Going forward, can you give me a capex guidance?

This year we have spent ₹330 odd crore, and the next year also will be in the same range. This is the broader guidance on the capex.

We don't calculate on the percentage of our revenue, we calculate on the production tonnage.

Sir, if you can guide me a net asset turn or a gross asset turn number.

Basically, what we are telling, na, that this year this year or the coming forward year, because there was certain one-off built up of the spend. On a year-on-year basis, you can't tie up with that number because my capex for this year might service for the next 2 to 3 years.

That ways it goes like that. On a on a conservative or a basis, you can tie up with the amount of depreciation what we have.

That will be invested in the capex. Almost on a on a long-term trajectory itself, a ₹250 crore of capex each year that will be done.

This year, this year or a previous year, we invested because we are building a capacity for next 4, 5 3, 4 years, so that will be there.

Perfect. Thank you.

Mota-moti kya hota hai ki, jaise every year we grow by 60,000 ton, and there is formula that ₹3 crore per ton aapko lagta

hai. What did you say, per ton is?

Every year we grow 50,000 to 60,000 ton of rice. If we build paddy to rice capacity, the thumb rule is, it's a ₹3 ₹3 crore per ton ka paisa lagta hai.

Okay. Currently, what is the total capacity tonnage-wise which

we have? In terms of milling paddy to rice, we have 8 lakh ton ki capacity

hamare

paas India mein hai, main India-specific baat kar raha hoon abhi, aur chawal pack karte hain hum roughly again 8,

9. Okay.

Thank you. That helps.

Thank you.

Yes, hi, sir. Thank you for the follow-up opportunity.

Just wanted to check, in the domestic market, this regional rice is an opportunity that we have talked about in the past. Can you give an update on that, what is now the sales level that we have from this segment, how is it growing?

That would be helpful. Thanks.

It continues to grow in the last financial year at a higher double-digit growth. It's approximately now around ₹170 odd crore in revenue, which comes out of our regional rice portfolio, and it will continue to remain our focus, and we'll continue to grow this in the future as well.

All right. Lastly, just a clarification.

The normalized margins that you have presented for the full year, they don't incorporate the impact of your higher spending on A&P, brand building, or the higher level of UK investments, right? They are only adjusting for the US tariffs and the accounting adjustment.

Is that correct?

Correct. You are absolutely right.

That accounts only for the tariff and yes, tariff.

Sir, therefore, the slight 40 basis point reduction in the operating margin that we see from FY25 to FY26, that would be on account of the higher A&P and the UK investment?

Partly because of the tariff as well. The tariff, if I talk about the passing off of tariff to the end consumers, and building up of the inventory and UK and organic, that is the reasons for lower margins, reduced of 40 basis change in the margins.

Got it, sir. Thanks, and all the best.

On behalf of the management of LT Foods Limited, we sincerely appreciate your participation in our post-earnings call. We hope we have been able to address most of your queries and provide clarity on the performance and outlook.

For any further questions or follow-ups, please feel free to reach out to me or our investor relations partner, Ernst & Young. The team will be happy to connect with you offline and assist with you any additional information you may require.

Now you may please close the call. Thank you.

Thank you.