Rice Stocks Rally on August 24

Shares of rice exporters LT Foods and KRBL rallied up to 13% in Monday's trade, according to Business Standard. The surge came amid heavy volumes in an otherwise tepid market, with the BSE Sensex down 0.17% at 77,412 at 11:22 AM.

LT Foods hit a 52-week high of ₹482.85, surpassing its previous high of ₹479.80 touched on September 19, 2025. CNBC TV18 reported that the stock surged to a one-year high of ₹487 by midday, up 13%, with over 32 million shares exchanging hands in the first half of trade—more than 86 times the average volume in the last 10 days. Moneycontrol noted that LT Foods shares hit an intraday high of ₹489 before trading 8% higher at ₹462.75 at 1:45 pm.

KRBL's stock price jumped 9% to ₹443.50 on a three-fold rise in average trading volume, as per Business Standard. Moneycontrol reported that KRBL and Chaman Lal Setia were trading 8% and 8.5% higher, respectively, at 1:45 pm.

The rally in rice stocks was part of a broader surge in soft commodities. Moneycontrol noted that after recent gains in sugar stocks, milk and rice stocks also witnessed a rally on August 24, with dairy companies like Milky Mist, Parag Milk Foods, and Hatsun Agro rising up to 6%.

What's Driving the Rally?

LT Foods' management said in its Q1 earnings conference call that underlying demand fundamentals remain healthy, and the company expects gradual normalization over the coming quarters as the business mix improves, according to Business Standard. The company also said its RTH facility in the US is expected to become operational this quarter.

KRBL management told NDTV Profit that rice prices could remain firm for the rest of the year, attributing the strength to higher demand and lower crop size. "Profitability depends on revival of exports and paddy prices in coming periods," the management said. KRBL expects a normal basmati crop this season, with sowing levels broadly in line with previous years, according to CFO Ashish Jain.

KRBL's optimism about export revival is backed by Religare Broking, which expects export volumes to recover progressively from Q2FY27 as shipping conditions in West Asia stabilise. India's basmati export volumes declined to 1.5mt from 1.7mt year-on-year amid the disruption, while realizations increased 20% YoY and 13% QoQ.

LT Foods' exposure to West Asia had affected its shares earlier this year, when rice exports to the region were briefly impacted by geopolitical tensions, as CNBC TV18 reported. The company's FY25 revenue from West Asia exports stood at 9%.

Strong Financials and Analyst Optimism

LT Foods reported revenue of ₹1,172.08 crore for the quarter ended June 2026, up 11.56% from ₹1,050.56 crore in the year-ago period. Net profit rose 89.67% to ₹70.16 crore, and total income increased 10.77% to ₹1,176.11 crore, according to a regulatory filing cited by CNBC TV18.

Moneycontrol noted that LT Foods reported a strong revenue growth of 28% in 1QFY27, with 34% YoY growth in Basmati and Other Specialty Rice. EBITDA grew 33% YoY, with operating margins improving to 11.2% from 10.8% in Q1FY26 and 9.3% in Q4FY26.

Brokerages remain optimistic. Geojit Investments maintains a 'Buy' rating on LT Foods with a target price of ₹514, valuing the stock at 17x FY28 EPS. The brokerage noted that the core basmati franchise continues to deliver strong volume-led growth, while market share gains in India reinforce the premiumisation thesis. Near-term margins face two transitory drags: the organic segment's shift from a wholesale model to a direct CPG model and changes in related-party shipment terms.

Motilal Oswal also gives a 'Buy' rating on LT Foods with a target price of ₹520, raising FY27 and FY28 earnings estimates by 9% each. Religare Broking has a 'Buy' rating on KRBL with a target price of ₹461 per share, expecting revenue, EBITDA, and profit after tax to grow at approximately 10.9%, 18.4%, and 21.4% CAGR respectively over FY26–FY28E. KRBL management maintains its guidance of meaningful export growth for FY27.

Company Profiles

LT Foods is a Gurugram-based FMCG company specializing in basmati rice, organic foods, and ready-to-eat/cook (RTE/RTC) products. Its flagship brands include Daawat in India and Royal in North America, and it has a presence in more than 80 countries with significant exposure in the US, Europe, and West Asia. The company exports to 85 countries including the US, UK, and West Asia.

KRBL produces basmati and non-basmati rice and is also engaged in manufacturing by-products such as bran oil, furfural, and de-oiled cakes. India Gate is its flagship brand.