LT Foods shares rise 5% on strong Q1 revenue growth and margin expansion
Shares of the Indian FMCG company climbed after reporting a 26 percent year-on-year increase in quarterly revenue, signaling sustained demand despite marginal year-on-year pressure on profitability.
LT Foods shares jumped nearly 5 percent in intraday trading on the Bombay Stock Exchange on Friday, following the release of its first-quarter fiscal 2027 earnings. The stock opened at 400.40 rupees and reached an intraday high of 416.60 rupees, extending its gains for a third consecutive session.
The Mumbai-based fast-moving consumer goods company reported a 26 percent year-on-year increase in total revenue to 3,161 crore rupees for the quarter ended in June. Profit after tax rose 9 percent annually and 35 percent sequentially to 183 crore rupees.
Earnings before interest, taxes, depreciation and amortization climbed 20 percent year-on-year to 363 crore rupees. However, the EBITDA margin contracted by 60 basis points annually to 11.5 percent, even as it improved by 130 basis points from the previous quarter.
The results highlight a nuanced profitability picture for the food products maker. While sequential margin expansion suggests improving operational efficiency, the annual margin compression indicates ongoing input cost pressures in a competitive fast-moving consumer goods landscape.
Investor attention is also focused on upcoming corporate actions. The company has set September 18, 2026, as the record date for its final dividend for the financial year ended March 31, 2026. Shareholders will vote on the recommended payout of 1 rupee per share at the annual general meeting on September 29, 2026.
The recent rally builds on a strong long-term track record, with the stock delivering returns of 1,280 percent over the past decade and 125 percent over the last three years. Year-to-date, the shares are up 6 percent, recovering from a 52-week low of 332.25 rupees in January. Prominent investor Mukul Mahavir Agrawal maintained his conviction in the company, holding 3.9 million shares, representing 1.12 percent of total voting rights, unchanged from the March quarter.
