The Ministry of National Economy in Hungary has officially rejected LT Foods ' bid to acquire Global Green Group, marking a significant setback for the Indian food company's international expansion efforts.

Regulatory Decision Details

The Hungarian regulatory authority's decision effectively blocks the proposed acquisition that would have expanded LT Foods' presence in the European market. The Ministry of National Economy serves as the key regulatory body overseeing foreign investment and acquisition activities in Hungary.

Impact on Expansion Strategy

This regulatory rejection represents a notable development in LT Foods' international growth plans. The company had been pursuing the acquisition of Global Green Group as part of its strategy to strengthen its position in global markets.

Market Implications

The denial by Hungarian authorities highlights the regulatory challenges that Indian companies face when pursuing international acquisitions in European markets. Such regulatory decisions can significantly impact corporate expansion strategies and market entry plans.

The rejection of this acquisition bid may prompt LT Foods to explore alternative growth opportunities or reconsider its approach to European market expansion. The company will likely need to reassess its international acquisition strategy following this regulatory setback.

LT Foods Limited released the complete transcript of its investor and analyst conference call held on January 30, 2026, to discuss the unaudited financial results for the quarter and nine months ended December 31, 2025. The transcript was disseminated to stock exchanges on February 3, 2026, in compliance with SEBI Listing Regulations.

Financial Performance Overview

The company reported record quarterly and nine-month performance during the earnings call. Key financial highlights include:

For the nine-month period, LT Foods achieved record revenue of ₹8,085 crores with 24% year-on-year growth, while normalized growth excluding U.S. tariff and Golden Star impact stood at 12%.

Management Commentary on Key Challenges

During the earnings call, Managing Director Ashwani Kumar Arora addressed several critical issues affecting the business:

U.S. Tariff Impact

The company has successfully passed on the majority of the 50% U.S. tariff to consumers. CFO Sachin Gupta clarified that the tariff applies to imported value, translating to approximately 25-26% impact on overall sales value. Management indicated some slowdown in January consumption but expects clearer trends by March quarter-end.

Basmati Crop Situation

The company reported that basmati crop yields fell short of earlier projections across major production states, resulting in higher price levels. Average paddy price increases of 7-8% are expected on a consolidated basis, with the company maintaining its policy of covering 80% of annual requirements.

Segment-wise Performance Updates

Management provided detailed insights into various business segments:

Geographic Market Analysis

The earnings call revealed strong performance across key markets:

North America (46% of revenue): Normalized growth of 12% excluding tariff and Golden Star impact. Royal brand maintains 60% market share in basmati segment.

India (29% of revenue): 10% year-on-year growth with Daawat household reach expanding from 45.56 lakh homes in March 2023 to 58.11 lakh homes in September 2025.

Europe (16% of revenue): Robust 35% year-on-year growth, primarily driven by U.K. operations that became operational in the latter part of last year.

Strategic Initiatives and Future Outlook

Management outlined several strategic developments during the call:

Hungary Acquisition Update

The proposed acquisition of Hungary-based Global Green Group was not approved by the Ministry of National Economy Hungary due to identified national, economic, and sectoral risks.

Middle East Expansion

The company launched Hadeel brand specifically for HoReCa segment in Saudi Arabia, with branded revenue from Saudi Arabia reaching ₹35 crores in nine months compared to ₹17 crores last year.

CVD Duty Status

Regarding Ecopure Specialties Limited, the final determination on CVD duty, originally expected by November 17, 2025, has been extended to February 17, 2026, due to U.S. government shutdown.

Management Guidance and Outlook

During the Q&A session, management reaffirmed their double-digit revenue growth guidance while acknowledging margin pressures. Ashwani Arora emphasized that current challenges are temporary and geopolitical in nature, with strong underlying business fundamentals across diversified global operations.

The company maintains its target ROCE improvement from current 20% levels to 23%, supported by strong brand equity, disciplined investments, and expanding market penetration across segments and geographies.