Orkla India Q4 FY26 Revenue Up 5% YoY

Full Year FY26 Performance:

Revenue from operations: INR 2,509 crores, up 4.8% YoY
Revenue from sales of products: INR 2,493 crores, up 5.7% YoY
Volume growth: 5.9% (highest in four years, up from 1.8% in FY23)
EBITDA: INR 424 crores, up 7% YoY
EBITDA margin: 16.9% (improved from 14.4% in FY23)
Underlying EBITDA growth excluding PLI impact: 12.4%
PAT before exceptional items: INR 298 crores, up 3% YoY
Reported PAT: INR 286 crores, up 11.7% YoY
Exceptional items: INR 16.7 crores related to gratuity expenses from new labor code implementation
PLI income: None recognized in FY26 (vs INR 20.5 crores in FY25)
Cash surplus: INR 600 crores as of March 31, 2026
Return on capital employed: 27.7%
Cash from operations before taxes: INR 355 crores
Trade working capital days: Improved by 2 days

Q4 FY26 Performance:

Revenue from operations: INR 626 crores, up 5% YoY
Revenue from sales of products: Growth of 6.2% YoY excluding PLI/other income
Volume growth: 2.2%
EBITDA: INR 100 crores, up 7% YoY
EBITDA margin: 16% (improved 30 bps YoY)
PAT before exceptional items: INR 74 crores, up 7.5% YoY
Underlying EBITDA growth adjusting for PLI absence, elevated freight costs, and Project BOLT investments: 28.9%

Spices:

Revenue growth: 6.1% YoY
Domestic growth excluding Kerala: 11.1% with volume growth of 6.5%
Market share changes (MAT March 2026): Karnataka +30 bps, Kerala -50 bps, Andhra Pradesh stable
Kerala impact: Affected by distribution restructuring and reduced HoReCa demand due to LPG crisis

Convenience Foods:

Revenue growth: 6.4% YoY
Double-digit growth in Meals and Sweets categories
Breakfast portfolio remained steady due to temporary slowdown in two quick commerce platforms

Geographic Performance (Q4 FY26):

Domestic revenue growth: 6.5% (8.9% excluding Kerala)
International growth: 5.1%
GCC region growth: 11.8% (70% of international business)
North America: Soft growth due to tariff-related uncertainty and inventory adjustments

Commodity Inflation:

After two years of deflation, spice prices showed 6.5% uptick in Q4 versus earlier lows
Key spices inflation: Chili 20-30%, Coriander 10-15%
Company initiated calibrated price increases (~4% in Q4) with another round expected in Q1 FY27

Distribution Restructuring (Kerala):

Initiative to rearchitect Eastern's distribution model (acquired in 2021)
Aims to enhance spices coverage, accelerate convenience foods growth, and create dedicated modern trade structure
Project started in Q4 FY26, expected to complete by January 2027
Near-term disruption expected for next two quarters

Project BOLT (Digital Commerce):

Initiative to accelerate digital commerce capabilities with external agency support
Three pillars: Digital commerce playbook, online market share ambition, channel-specific innovations
Q4 digital commerce growth: 23% YoY; FY26 growth: 38% YoY
Digital commerce contribution: 8.7% of domestic revenues (up from 6.6% last year)
MTR Prakriti expansion: Now available in five metros across quick commerce platforms
38% of digital commerce sales from non-South markets
D2C repeat rate: 21%

International Business Challenges:

West Asia conflict caused elevated freight costs, port closures, and increased transit times
Company ensured continuity of supplies through calibrated interventions
Safety and security of teams on ground maintained

Manufacturing and Sourcing:

Volume-led growth strategy remains priority
Focus on driving penetration in rural markets through consumer activations (400+ schools and mandis reached)
Innovation launches: MTR Karam Gold chili powder for pickles and MTR Karam for Andhra Pradesh/Telangana markets
Eastern brand positioning: Building as food company beyond spices, focusing on Malayali diaspora products
Fresh wet batter portfolio expanded to Hyderabad city
No specific margin guidance provided, but focus on operational efficiencies and cost optimization
PLI scheme: FY27 is final year, recognition dependent on meeting threshold criteria

Kerala distribution restructuring impact expected for next two quarters, completion by January 2027
GCC growth remains strong at 11.8% despite West Asia challenges
US business soft due to tariff-related inventory adjustments
Digital commerce growth driven by both new household penetration and channel migration
Margin improvement driven half by raw material price reductions and half by operational efficiencies
Eastern margins improving but still below MTR levels; convenience foods expansion expected to improve profitability
Management incentives aligned with shareholder value creation through ESOP program