Ladies and gentlemen, good day and welcome to LT Foods Q2 FY 2026 earnings conference call hosted by Motilal Oswal Financial Services. As a reminder, our participant lines will be in listen-only mode, and there will be an opportunity for you to ask a question after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Meet Jain from Motilal Oswal Institutional Equity. Thank you, and over to you, sir.
Thank you. Good afternoon, everyone, and a very warm welcome to LT Foods Limited Q2 FY 2026 post-results earnings call hosted by Motilal Oswal Financial Services. 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. We will begin the call with comments from the management team. Thereafter, we will open the floor for a 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. Good afternoon, everyone. Welcome you all to LT Foods Limited Q2 financial year 2026 earnings conference call. 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 the 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. I would like to give you the overview of the business.
During quarter two financial year 2026, LT Foods achieved its highest-ever quarterly revenue of INR 2,772 crore, representing growth of 30%, and the normalized growth of 12%, excluding Golden Star and U.S. tariff, and EBITDA of INR 316 crore, representing growth of 24% compared to quarter two financial year 2025. For the first half of financial year 2026, the company reported a record half-year revenue of INR 5,273 crore, demonstrating year-on-year growth of 25%. Normalized growth of 15%, excluding Golden Star and U.S. tariff, and EBITDA of INR 619 crore, representing growth of 20% compared to the first half of financial year 2025. This robust performance is attributed to the strategic brand investments, sustained growth across multiple segments and geographies, increasing consumer demand and preference for our brands, and improved distribution channels across key markets.
The company reported an EBITDA margin of 11.4% in Q2 financial year 2026, down by 60 basis points from 12% in quarter two financial year 2025, primarily due to increased brand investments and certain strategic initiatives and digitalization initiatives undertaken by the company. Over the long term, the company has demonstrated consistent performance with a five-year compounded revenue growth of 16% and compounded PAT growth of 21%. Additionally, LT Foods maintains a strong investment-grade credit rating of CRISIL AA- A1+ with a positive rating outlook revised in July 2025. LT Foods strategically expanded its presence in the European processed canned food market through the acquisition of Hungary-based Global Green Europe kft. This acquisition marks entry into the GBP 15 billion market segment, compounding LT Foods' existing RTE and RTC packaged food portfolio.
The transaction was done at an enterprise value of GBP 25 million, contributing an additional GBP 40 million in revenue, subject to EUR 1 million in revenue subject to FDI approval. Management expects this acquisition to strengthen the group's competitive positioning and support sustainable long-term growth. It also establishes a third manufacturing hub in Hungary, reinforcing LT Foods' footprint across Central and Southern Europe and improving regional operational capabilities. I would like to provide an update on countervailing duty concerning Ecopure Specialties 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 U.S. Department of Commerce. The final determination has been extended by one month following the hearing and is now anticipated by November 17, 2025.
Segment-wise update, Basmati and other specialty rice businesses recorded a 24% growth, but otherwise the normalized growth is 11.4%, excluding the Golden Star and U.S. tariff. Year-on-year growth in the first half of 2026 was driven by enhanced brand investment and focused marketing initiatives that continue to strengthen consumer trust. The organic segment delivered a robust 26% year-on-year growth in the first half of 2026, reflecting the rising global demand for sustainable food choices and our strong presence across key international markets. Under our organic business arm, Nature Bio Foods Limited has entered the B2C segment in Europe with the inauguration of a new facility in Rotterdam. The initial capital expenditure for this facility was approximately INR 20 crores, with a planned additional investment of INR 15 crores over the next three years.
With this, leveraging the new capability, the company will sustain sourcing from India and Africa while expanding procurement from over 20 countries worldwide, aiming to supply premium organic ingredients to the European market. The revenue acceleration is expected to begin in financial year 2026-2027, with an estimated incremental revenue of INR 400 crores over the next five years, driven by this strategic investment. With the strategic move focusing on building a stronger RTE and RTC portfolio, the company expanded its three-kit portfolio with the launch of Daawat Thai Green Curry Rice Kit. The introduction of Daawat Thai Green Curry Kit was followed by a strong performance of Daawat Biryani Kit, which has crossed one million units of annual consumption since its starting.
Geography-wise update, North America accounts for 46% of our revenue and continues to be a key growth driver, with a 47% year-on-year revenue growth, the normalized growth of 16%, and excluding Golden Star and U.S. tariff. Our flagship brand revenue, Royal, holds a dominant position, commanding a 54% market share in the region and a 61% share in the Basmati rice import in the U.S. Golden Star is the number one Jasmine rice brand in the region. India contributes 30% of our revenue, recording a 13% year-on-year growth. Our brands collectively hold a 26% market share, with category leadership in the Western region. In India, the household reach of Daawat has grown significantly from 4.556 million homes in March 2023 to 5.62 million homes in March 2025. Europe and the U.K. currently contribute 15% of our overall revenue.
Our progress in this region has been robust, achieving 31% year-on-year growth, driven by expanding market reach and rising demand for our differentiated offerings. Besides, we have made investment in people and infrastructure in the EU. The Middle East and the rest of the world constitute the remaining 9% of our revenue. Of this, INR 280 million is from Saudi Arabia. Looking ahead to financial year 2026, our priority is to build a stronger, future-ready, more robust LT Foods by deepening brand equity, accelerating market expansion, investing in digital transformation, and evolving through strategic partnerships. We remain committed to delivering products that represent trust, quality, and value to consumers worldwide. With this, I would now like to hand over the call to the moderator to open the floor for questions and answers, please.
Thank you. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one. Am I audible now?
Yes.
Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Azharuddin Jariwala from Sameeksha Capital. Please go ahead.
Yeah, am I audible?
Yes, sir. Please go ahead.
Thank you for giving me the opportunity. My first question is on the working day working capital. We can see that year-on-year, our payable days have increased from 19 days- 30 days. Can you please throw some light on that?
Yes, sir. My working capital days on the payable side are 43 days. This is the current six-month data, up from the last 28 days. There is an increase of 15 days. This is basically on account of better negotiations which we have done with the vendors. That has increased our working capital payable days by 15 days if you compare it with the year-on-year data.
Okay. Recently, we have done an investment of GBP 5 million in our step-down subsidiary, which is LT Foods UK Limited. How are we planning to deploy the capital in the business?
That is for the leverage. The company leveraged once. It was in order to improve the leverage ratios. The investments are being made in one of my subsidiaries, that is in the U.K. We have set up our factory in London. In order to instill the capital and have a better debt-to-equity and debt-to-EBITDA ratios, the kind of funding is being given.
Okay, thank you.
Thank you. The next question is from the line of Amit Doshi from Care Portfolio Managers Private Limited. Please go ahead.
Thank you. The mention is about this volume growth of 23% and corresponding revenue normalized growth is 11%. What would be normalized volume growth? How have you accounted for this U.S. tariff part? If you just can clarify so we could understand it better.
Yes, if you talk about the U.S. tariff, a certain portion has been the incremental revenue that has been there in the financial itself. If we normalize that revenue itself, and yes, in this half year, the Golden Star has also got consolidated. If we normalize both the revenues, our revenue has increased on a year-on-year basis by 14.5%. That is the growth which is there.
Normalized volume growth?
The normalized volume growth is 23%. The volume growth, if we reduce the Golden Star in this, will be around 18%.
Okay. When you say U.S. tariff, if we exclude Golden Star, I understand that Golden Star had roughly INR 300 crore quarterly run rate, at least till last quarter. Around 130 crores, 150 crores is an impact on account of U.S. tariff. That 50% of the goods that we sold in the U.S. is that figure? I mean, or yes. Which means that we have passed on all the tariff to the end consumer?
Yes, if you look at our financial numbers now, almost INR 353 crore have come because of the consolidation of the Golden Star. We are in the process of passing it on to our customers, the increased impact. That has to be seen in the coming quarter. There are two parts of duty. First, the 10% duty was imposed, then 25%, and then 50%. The first phase duty, we have negotiated and we have passed on, and the impact is of that. The now duty of 25%, 50%, that we are in the process of negotiation with our customer.
Okay. In September, till September, we would have already done something, right?
Yeah, that's how. What Sachin just said, the initial duty, which is 10%, partly we have passed on.
Okay. On the organic and the RTE/RTC business, both have not grown sequentially. Any reason? Because organic, we have just last quarter, we did this EU-U.K. tie-ups and all. Anything that you would want to comment on that?
Yeah. Rohan will comment on this. As far as revenue is concerned, we have grown. Margin has gone impacted. Rohan, who's the CEO of Nature Bio Foods, will explain more. Rohan, to you.
I'm happy to answer that. See, we have invested in Europe for creating a private label infrastructure here, which will make us enter into the new channel. Now that we already have that establishment in the last six months or H1, we had to move a lot of our operations to third party. Given that we were expanding two, three times of our capacity is what we had before, to make that possible in the six months of period, we had to move our operations to third party. That has made us spend some extra cost, which has impacted our margins, as one of the components of why our margins are reduced. On the revenue side, I think if you see, you said it has not grown sequentially, but it has. Revenue-wise, we are seeing a good growth already from the last half-yearly of last year.
There, we don't see anything. I think it's a correction that once you will read it again. On the margin side, also, as you know, organic business does a lot of business in the non-basmati segment. Non-basmati, globally, its prices are under pressure, partly because India banned non-basmati rice, and just non-basmati as a category I'm mentioning. Given that there were more surplus inventory of non-basmati and a higher production that the numbers have stated now, this has given a high pressure on the prices globally. Because of that, we had to sell at the market prices for something which we harvested at a higher price at that time. That has also been shown in our margin structure that we had to have pressures on our margin. This will all be covered up in the coming quarters.
Okay. What I meant was revenue growth sequentially. Sequentially, based on the numbers of H1 and last Q1, I concluded that there was no growth on the revenue front.
Correct. Correct. Amit, you are right. On quarter-on-quarter basis, the immediate preceding quarter, the revenue size has remained more or less the same. What Rohan is saying of the six months, you need to compare with the six months. There is a growth of almost 26% that is coming in the six months. Yes, the margins have, as Rohan explained, there has been pressure on the margins. That too will be corrected in the coming year.
Got it. There is a purchase of stock in trade. There's a high jump in that. Is that something to do with some bulk orders?
Not really, Amit. This is basically on account of the GS and the Golden Star getting consolidated. It is more of a trading. We are getting it packed in the pre-packed form from our suppliers in Thailand. It was not there last year. Now, when it is getting consolidated, it is more of that.
That is the reason for reduction in other income as well. Correct?
Correct. Correct. There was an income from the GS that was sitting in the last year. That has now been consolidated.
Okay. Last one, now, this Thailand importing, I mean, U.S. importing from Thailand, this Golden Star. That also has around 19% tariff. That also has been passed on to the customer?
Yes. Yes.
Okay. Thank you. I'll join in the queue. Thank you.
Thank you. The next question is from the line of Nitin Shakdher from Green Capital Single Family Office. Please go ahead.
Hi. Good afternoon. This is Nitin Shakdher from the Green Capital Single Family Office. My question to the management is more from as an investor rather than an analyst. What is the company's thought process in terms of a larger brand strategy to become a larger food and beverage company maybe in the next few years in terms of brand expansions, let's say like yogurt-based drinks, lassi, buttermilk, lemonade, sherbets, which go very well with rice. On the same lines, the way you've done curry curry, rice meals, and European processed foods venture, is there a thought process on the strategy to become a larger company rather than just a rice brand?
Good question. As a brand, Daawat is a very strong brand in India and globally. Royal is a very strong brand in North America. We have in our five-year plan how to do the extension in this brand and what portfolio we can extend where we have a better right to win, a growth opportunity. We have a full plan. That's how we are reasonably giving the guidance on our five-year plan. This is what we do every five years. That's the rolling part of that. As far as just a rice company, we are very proud and very happy to be a specialty Basmati rice company. The category is growing year on year, 5%- 7%. It's a healthy business. We have a plan to grow specialty rice, dry rice, as well as extending. Is it okay or?
Yes.
Hello. Nitin. Is it okay?
Yes. Yes. My follow-up question is, if you could talk us through the European processed foods investment with Global Green Europe KFT, how's that shaping up? I know it's too initial right now, but what's generally the ramp-off and how is it going to be processed, and what's the initial date on that?
Yeah. We have signed SHA. We are waiting for the approval from the Hungary government. Once the approval is there, the transaction will proceed. Yes, it will take two to three months.
Okay. Thank you. All the best. Thank you.
Thank you.
Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question is from the line of Hitesh Goyal from Oregon Capital. Please go ahead.
Yeah. Thanks for taking my question. Can you tell me what is the volume growth in the U.S. in 1H FY 2026 and also in India?
Regarding the volume growth, our team will provide you with the data. You can ask our team members, they will provide you with the data.
Okay. In terms of input cost, how has input cost shaped up on a Q1 basis? Has there been a reduction or it has been flat?
I think the gross margin has improved. As far as input cost is concerned, I'm sure you know that in a year's time, 80% of the crop, 70% of the crop, we source in the month of October to February. It doesn't really vary quarter- on- quarter. It's a year on year. Our gross margin has improved. That impacts both the pricing power as well as the efficiency in the cost.
My final question on the Middle East market, there has been a decline, right? I mean, you're a very small player right now in the Middle East market. Still, we are seeing a decline. Can you talk about what is the strategy on the Middle East side? It's the biggest market in Basmati, right?
It is not a decline. If you look at my first quarter numbers, there was a decline of almost 33%. This decline has now been, in the quarter-on-quarter basis, we have improved. The first quarter was slightly sluggish in this regard, but we are improving. We have gained quite a reasonable share in that, the loss in the sales which was there in the second quarter itself.
As far as.
Yeah. But.
Middle East.
Middle East is very big. As it's earlier also, Middle East is one of our focus markets. We have started from kind of green field. It will take time, but it is in the focus. If you have seen in Saudi Arabia, we are building the business. Hopefully in the next five years, we will be able to build a sizable business in the Middle East.
Okay, thank you.
Yeah.
Thank you. The next question is from the line of Ishant Lalwani from Ashika Institutional Equities. Please go ahead.
Hello. Thank you so much for taking my question. Our PAT margins were trending downwards from the past seven to eight quarters. Earlier, it was around 8%. Now, it was around 6%. Can you just throw some light on this and your future outlook on the PAT margins?
Sachin will explain more. If you see our ROSI has started, it's the impact of the mix. It's adding Jasmine rice business where absolute margin in percentage may be lower, but in terms of ROSI, it is high. If you see our ROSI has improved to, Sachin, correct me, it's around 22%.
22%. If you look at our numbers, the PAT numbers, this year half-year, it's 6.2%. Last year, same, it was 7.2%. You need to normalize certain things in this regard. There was certainly the tariff which we had passed on. There was an incremental revenue that was given in this. One of my segments, the Nature Bio Foods, there was an organic segment. The organic segment didn't perform as per the targets. We are looking forward and having a better base in the going quarter as well.
In spite of these things, our growth in the PAT margin or in the year-on-year basis is almost 8.7%. That is the growth which we have. That's a resultant of a lot of investment in the brands and the digital. All these investments, if you see, the gross margins are improving. Correct.
Yes, thank you, sir.
Thank you. The next question is from the line of Raman KV from Sequin Investments. Please go ahead.
Hello, sir. Can you hear me?
Yes, Raman ji.
I just want to understand. It's more of a doubt with respect to the RTC, the margin declined because you had additional cost as you moved toward third-party manufacturer. Am I right?
No. Not. The margin decline is basically on account of the certain kind of promotions and the brand investments which we have done. There was an incremental brand investment which was done in the RTC and RTE segment in order to accelerate the sales.
We did third-party manufacturing for what?
Am I audible?
I think you had some issue in.
Hello?
Can you hear me?
Hello, can you hear me? Hello?
Excuse me, sir. Can you hear me?
A reminder to all the participants that you may press star and one to ask a question. Yeah. The next question is from the line of Rajesh Agarwal from Manikor. Please go ahead.
Hello, sir. The ability of crop is because of the rains, Basmati crop showing acreages increased by 1.5%. If we need to grow by double digit, the crops will be available for the next year?
That's a good question, Rajesh. As explained, the crop size is 1.5%. As healthy food, we contribute only 7% - 8% of the total crops.
Okay.
We have enough crop available as far as healthy food is concerned to grow.
Okay.
This is cyclical. Some years, it grew by more than the demand, and then the carryover takes growth. This is how the typical cycle goes. Sometimes more, sometimes at par, and then the prices will be a little bit firm up. Again, the growth will come.
Ability won't be a problem for the next year?
No. No. No. No. No.
Okay. Second, sir, your outlook on the tariff, how much can be passed on? How much has been passed on? How much heat either we have to take?
We are in the process.
Okay.
I think the next two months will tell us the impact of this. We are in the process. Yeah.
Nothing has come in this quarter. No, because we had a storm.
A little bit. Initially, when there was a 10% duty.
Okay.
We have taken partly price increase.
Okay.
Yeah. Yeah.
Okay.
There is a 2025, then again 2025.
for 2025. Right.
Yeah, there were three phases. Yes.
Okay. Are our stocks available there now still for the Christmas season?
Yeah. Yeah. Fully available.
Okay.
As long as we are very well presented on the shelf.
Okay.
Things are normal.
Okay. Understood. Thank you, sir. I wish you the best of luck.
Thank you so much. We need this.
Thank you.
Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question is from the line of KB Sankara Rao, an individual investor. Please go ahead.
Hello. Am I audible?
Yes, KB ji.
Just one question. There is an excellent improvement in revenue and operational profit. That did not get converted into PAT. I think there was already a question previously, but I did not fully understand. What are the top reasons for non-conversion of this operating profit into PAT?
Yes, there are two or three reasons for that. In our scenario, we are investing in our brand. Our brand investments as a % to revenue have increased. Likewise, we are investing in our digital initiatives and making future-ready organizations. That kind of investment as a % to the revenue has increased in this half-year. Likewise, earlier, the Golden Star, the share of profits was there, there was no revenue as such assigned. My overall profits, the share of profit used to reflect directly to my PAT numbers and getting better return ratios. Now, this year, with the consolidation of the Golden Star, the overall revenue and other size of the business is getting consolidated. We have grown, but at the same time, there are certain reasons associated with the PAT not following the growth of the revenue.
Okay, thank you.
Thank you. The next question is from the line of Prashant, an individual investor. Please go ahead.
Hello, gentlemen. Is my voice audible?
Yes, Mr. Prashant. Yes, very well.
First of all, thanks for the opportunity. I have a simple question. If we look at the balance sheet as of 30th September, you have cash and bank balances of around INR 600 crore+. You also have short-term borrowings of around INR 1,100-something, INR 1,200 crore. This looks like a dichotomy. We have an interest of around INR 50 crore+ for the half-year. Why should the company pay interest on short-term borrowings when it has cash of INR 600 crore+?
Yes, you are right in that sense. At the same time, you need to understand the geographical locations at which we operate. There are different companies in which we are operational. There are foreign companies. We can't have because foreign companies, they are relatively new. There, you require the loan for the working capital, whereas the same kind of cash, because in India, the procurement season hasn't started. We are sitting on the cash. That will be utilized in the coming quarters. That is because of my global operations. You can see now. One.
In India, we are cash surplus. Internationally, we have a borrowing. That's what Sachin wanted to explain. We can't transfer. Whatever surplus money we have, we are getting better returns than what we are paying.
It is in line with what kind of interest rates which we are paying. We are managing that kind of overall % of the ratios.
Okay. If we take the borrowing, short-term borrowings, what would be the blended cost of borrowing?
Overall, on the repeat terms I am talking about, that is around 7%. That includes the bank charges as well.
Okay. That's all from my side. Thank you.
Thank you.
Thank you.
Thank you. The next question is from the line of Meet Jain from Motilal Oswal . Please go ahead, sir.
Thank you. Sir, my question is regarding the Basmati segment. In terms of domestic market, we have seen a 7% kind of growth. On this, how do you look at the second half of 2026? Also, in terms of the overall outlook in the domestic market, as you know, we have seen a very good production as well as recent currency impacted. How is the overall demand supply scenario for this in the domestic market?
India category is growing in the range of 7%- 8%. Similarly, in international also, what is the latest thing? As far as demand is good, production is at par with last year, but there is a carryover from last year. We see no issue on the supply side. I hope that answers your question.
Yes, the second part is answered. The first part was how it's going to the second half would be.
Second half.
Second half guidance.
Yeah. Second half. As you know, in the U.S., there is a little bit of turbulence, although we are in the process of this price. The next two months will tell the things. We are reasonably optimistic about that. Rest of the business looks promising. India looks promising. Europe looks promising. The rest of the world also looks promising. U.S. is, we have to watch for the next two months.
Understood. The organic segment, sir, and also the different equation of the cash.
Rohan can explain more on the second half on the organic, but he's in control. Yeah, Rohan, please.
Yeah. We have, as I shared with you a little while ago, made some investments here, which has given us a slight dip in the margin. On the revenue side, as you have seen, the half-yearly has grown by 26% from previous years. We had to prepone some of the shipments to the U.S., given that this duty was 10%, 25%, and 50%. We see that the business is sustainably growing. We would rebound in the second half of the year. In coming years, on our strategies also, we are getting into the new private label channels here in Europe. Not knowing about the U.S. fully today, so far, the organic segment remains strong and sustainable. We believe that we will rebound to our last year's numbers by the end of the year.
Thank you. In terms of the margin, will we see similar kind of margin organic for the next two quarters as well, the higher cost weighing on the margin? Or was it this quarter phenomenon only, the organic segment?
It will take one more quarter to settle down. By the end of the year, we believe that in the fourth quarter, we will be back with our margin structures that we have been enjoying for the past few years.
Understood. Coming on to the convenience and health segment, the arts segment, I believe this quarter has already seen a big effect of our state health. Despite that, we have grown only by 9%. Just on the outlook for this segment, the artisan artists segment, also we were doubling the we have doubled the capacity in the U.S. market. What kind of blended growth can we see in coming quarters in the artisan segment? Consequently, is the U.S. market weighing on this segment as well?
Meet is doing very well. Mainly, the revenue of ready-to-eat and ready-to-cook comes from the U.S.A., but we have a capacity constraint. The production of the second unit, which we had just built last year, has gone a little delay. I'm sure in the next quarter, it will start, and then we will see growth. As far as demand is concerned, that is growing, but we were not able to capture that demand because of our constraint in the production.
We can see a similar blended in the next quarter as well, and from Q4, we can see the capacity ramping up from the new plant.
Quarter four.
Quarter four.
Okay. Will there be a certain impact on the EBITDA also? We are guidance for around INR 300 crore to INR 400 crore EBITDA Q1 or EBITDA positive. Are we on line with this? Can we expect this in FY 2026?
Yes, Meet, we are in line. Yes, because of this delayed production, we are delayed by almost six to nine months. This kind of break-even will also be certainly deferred to six to seven months. That is there, but we are on line for achieving the INR 400 crores and having a break-even.
Understood, sir. Thank you so much.
Thank you. The next question is from the line of Rajveer Tandon from Ventura Securities. Please go ahead.
Hi. Am I audible?
Yes, Rajveer ji. Yes, yes.
Yeah, I'd like to ask you about the impact on the financial statements of the new acquisition. What is the deal structure and how has it been taking place?
The deal size is EUR 25 million. That's the enterprise value we are buying at. We have assigned the SHA. Yeah, you add on. It's a SHA, and we will get an approval in coming two, three months. And it.
100% acquisition, basically, because you asked for the structure. After the FDI approval, it will become 100% acquired by LT Fellow subsidiary. Yeah.
Yeah. It's an all-cash deal?
Yes, it is an all-cash deal. Yes, it is an all-cash deal.
Okay. What is the value of the fixed assets, and how much would be the intangibles and goodwill that will be coming into the balance sheet?
Yes, there will be certainly the intangibles. It will be in the tune of EUR 6 million- EUR 7 million of intangibles that will be there. The remaining will be the asset value.
Okay. Got it. All right. Thank you.
Thank you. The next question is from the line of Shubhankar Oja from SKS Capital. Please go ahead.
Hi. Thanks. Basically, regarding the a cquisition only. Can you hear me?
Yes, yes, yes.
Regarding the acquisition only, what has been the past couple of years' trend of this entity? I mean, we have mentioned that EUR 40 million was the last revenue. How has it been growing, or is it like, in the last two, three years, has this business been growing there?
They were having some financial constraints, so they are not growing. As far as category, that is growing, and that is one of the theses to buy that, to have all the resources in place to grow that business.
Okay. Is it a profitable one in terms of EBITDA level?
It's a profit.
All right. This is why, secondly, sir, basically, this current 50% tariff, I mean, you said that when the 10% was applicable, we passed on. Right now, as we speak, how much of the tariffs have we been able to pass on?
We are in the process. 10% is whatever the proportion we have already passed on. The rest, the 35.
Still in negotiation?
Still in negotiation. Yeah.
Okay. All right. Got it. Thank you, sir.
Thank you. The next question is from the line of Krushi Parekh from Bugle Rock PMS. Please go ahead.
Hi, sir. My first question is India-centric. How is the competition shaping up, especially when it comes to modern trades? Even when it comes to this quick commerce, I believe that the top two players in India have a dominant market share in the quick commerce at least. How is the trend, and how are we geared to compete in this segment?
The category is growing. Daawat is the second largest brand. We are growing at 30%, very heavy growth. As Monika just explained, we are increasing our household. We are fully equipped from every aspect, from the strength of the brand. We are investing behind the brand. If we think in the H1, we have invested double money in advertising. That is how we are getting the growth. We are very strong.
Any indication on the competition intensity leaving, staying the same, or decreasing? What I've been hearing downstream is that some of the companies are now, I mean, all these players are now looking to have some other set of brands as well, considering the dominant position that the two players have.
I don't know. I have not understood your question exactly. We are in a stronger place, I can say. We are extending our brand to the strength of our brand. We have a better right to win.
Understood. Okay. Just from your overall strategy perspective, what are the top three or four considerations that we have whenever we are looking to enter into a new product category or maybe even acquiring a business? For the last two, three, four odd years, we have been on this spree of acquiring some of the smaller businesses or getting into a new product category. What are the key considerations that we have? Which are the top three considerations that we have?
Yeah. Very good question. As a company, as a brand, we have two strengths. One is Daawat as a brand. They have an equity. Second, we have a distribution. As a strategy, we will grow around this. Wherever the possibility will come where we can leverage the equity of the Daawat, we will expand there. That will be more the right plus. Other than rice acquisition, we will be evaluating which has a synergy with our distribution. As Daawat is a kitchen brand, we will be around that if that's the answer you're looking for.
Okay. It's the distribution synergy that we are looking for, coming in the periphery of where we are present.
Yes, that's right. That's right. Yeah.
Okay, thank you.
Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand over the conference to the management for closing comments.
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, Onsen Yang, for any further queries that you may have. They would connect with you offline. I would request the moderator. Now we can close the call. Thank you all. Thank you, everyone.
Thank you.
Thank you. On behalf of LT Foods and Motilal Oswal Financial Services, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.