LT Foods Limited's Board of Directors concluded their meeting on February 26, 2026, approving significant director appointments and corporate structure changes. The board meeting, held from 2:30 PM to 3:40 PM IST, addressed key governance matters pursuant to Regulation 30 of SEBI Listing Regulations, with all decisions subject to shareholder approval through postal ballot process.

Director Appointments and Re-appointments

The board approved multiple director appointments based on recommendations from the Nomination & Remuneration Committee. The appointments include both re-appointments of existing independent directors and new appointments to strengthen board composition.

Director Profiles and Expertise

Mr. Abhiram Seth holds a Graduate degree in Economics from Delhi University and Master's in Management Studies from Jamnalal Bajaj Institute, Bombay University. He is the founder of Aquagri, an enterprise promoting aqua agriculture through self-help groups, and served as Executive Director – Exports & External Affairs at PepsiCo India.

Mrs. Ambika Sharma graduated summa cum laude with Gold Medal in Business Economics from Delhi University. She brings over 30 years of experience in international trade and economic relations, having served as Director General – International at FICCI. Her expertise spans foreign trade policy, bilateral and regional engagements.

Ms. Rima Gupta contributes nearly 40 years of professional experience in marketing and brand strategy across diverse sectors including FMCG, IT, hospitality, and automobiles. She has worked with leading organizations including Nestle, ITC Limited, Tata Motors, and Unilever, and is the founder of Open Doors Consult.

Mr. Ashok Kumar Arora, part of the promoter group, brings extensive experience in FMCG business operations and product sourcing. Currently serving as President – Punjab Operations at LT Foods Limited, he is also a Director on the Board of Daawat Foods Limited, a wholly owned subsidiary.

Memorandum of Association Amendment

The board approved significant changes to the company's Object Clause by inserting new sub-clause III(A)(5). The amendment expands the company's business scope to include:

Regulatory Compliance and Next Steps

The company has established March 6, 2026 as the cut-off date for determining member eligibility for the postal ballot notice and e-voting process. All proposed directors have been confirmed as not being debarred from holding directorship positions by SEBI or any other regulatory authority.

The appointments align with the company's strategic governance objectives and regulatory compliance requirements. Mr. Ashok Kumar Arora's appointment strengthens the promoter group representation, as he is related to existing leadership including Chairman & Managing Director Mr. Vijay Kumar Arora, CEO and Managing Director Mr. Ashwani Kumar Arora, and Managing Director Mr. Surinder Kumar Arora.

LT Foods Limited has received a significant credit rating upgrade from CRISIL Ratings Limited, with its long-term rating enhanced to 'Crisil AA/Stable' from the previous 'Crisil AA-/Positive'. The rating agency also reaffirmed the company's short-term rating at 'Crisil A1+' on February 25, 2026.

Rating Action Details

The upgraded ratings apply to LT Foods' total bank loan facilities worth Rs 880 crore. This rating enhancement reflects the sustained improvement in the company's business risk profile and strengthened financial position.

Strong Financial Performance

The LT group demonstrated robust financial performance with operating income of Rs 8,039 crore in the first nine months of fiscal 2026, compared to Rs 6,453 crore in the corresponding period of the previous fiscal. The company is expected to achieve revenue of Rs 10,500-11,000 crore for full fiscal 2026, backed by increased sales through the basmati and specialty rice segment and organic segment.

Business Strengths and Market Position

CRISIL highlighted several key strengths that supported the rating upgrade:

• Established Market Leadership: Seven decades of experience in the rice industry with strong market position as a top player in the domestic basmati rice industry
• Global Presence: Operations across 80 countries with manufacturing units in India, US, Europe, UK and Africa
• Strong Brand Portfolio: More than 10 brands including flagship brands Daawat and Royal with high brand recall
• Extensive Distribution Network: Over 1,400 distributors and more than 1,95,000 retail outlets in India, plus over 100 international distributors

The group generates majority of its revenue (70% in fiscal 2025 and 73% in the first six months of fiscal 2026) from exports, with the US and European markets commanding leading positions.

Financial Risk Profile

The company maintains a strong financial risk profile with expected debt to EBITDA ratio of 0.6-0.7 times as on March 31, 2026, compared to 0.7 times as on March 31, 2025. Networth is expected to be Rs 4,300-4,400 crore as on March 31, 2026, up from Rs 3,765 crore as on March 31, 2025, driven by healthy accretion to reserves.

Operational Highlights

The group reported operating margin of 11.6% in the first nine months of fiscal 2026, with operating margins expected to be 12-13% in the near term. The company has successfully passed on the 50% tariff to its customers in the US, which account for approximately 46% of overall revenue in the first six months of fiscal 2026.

Outlook and Rating Sensitivity

CRISIL maintains a stable outlook, believing the LT group will continue to benefit from its established market position, strong brands and diverse geographical presence. The rating agency noted that upward factors include steady revenue growth and sustained operating margins of 12-13%, while downward factors could include substantial decline in operations or large debt-funded acquisitions that weaken the financial risk profile.