Upgrades

Godrej Agrovet (GOAGRO) has exhibited a pronounced and sustained recovery across its metrics over the last 12–18 months, as cost and margin gains prevailed over soft volume growth.

LT Foods (LTFOODS) reported a strong quarter with revenue growth of 19% in 1QFY26, led by 18% YoY growth in Basmati and Other Specialty Rice (branded business volume up 22% YoY) and 32% YoY growth in Organic Foods.

Despite a challenging macroeconomic environment, the company’s domestic crop protection segment delivered a strong performance in FY25, led by robust growth in the in-house portfolio, particularly the Hitweed herbicides.

LT Foods (LTFOODS) reported a decent quarter with revenue growth of 7%. 4QFY25 revenue growth was led by 7% YoY growth in Basmati and Other Specialty Rice (branded business volume up 13% YoY) and 10% YoY growth in Organic Foods.

Company Update

LT Foods (LTFOODS) is a leading Indian basmati and specialty rice producer with over
70 years of experience in offering a diverse range of rice products under brands,
Daawat and Royal.

Godrej Agrovet (GOAGRO) demonstrated a resilient performance in FY24 despite facing significant sectoral challenges. With a strategic turnaround underway, the company focuses on structural changes.

Godrej Agrovet (GOAGRO) reported strong operating performance (EBIT up ~22% YoY) in 1QFY25, driven by improved profitability in the animal feed (AF) business (EBIT up ~45% YoY).

Godrej Agrovet (GOAGRO) reported strong operating performance (EBIT
up ~3.4x YoY) in 4QFY24, driven by improved profitability in crop protection (EBIT up 3.5x YoY) and a turnaround in dairy business (EBIT of
INR203m vs. operating loss of ~INR83m).

Godrej Agrovet had reported average EBITDA margin of 8.1% over FY13-22 but its EBITDA margin dropped to 5.6% in FY23 due to steep inflationary pressures. With correction in commodity prices, its EBITDA margin recovered 130bps but it was lower than our expectations.