OAL FY26 Net Profit Falls 90.7% on Higher Costs
Oriental Aromatics reported a 90.7% decline in FY26 net profit to INR 32 Mn, driven by increased finance and material costs, even as revenue grew 11% to INR 10,308 Mn. Q4 profit stood at INR 40 Mn with revenue of INR 2,824 Mn. The company recommended a final dividend of INR 0.5 per share for FY26.
*this image is generated using AI for illustrative purposes only.
Oriental Aromatics has reported its audited consolidated financial results for the quarter and year ended March 31, 2026. The company posted a net profit of INR 40 Mn for the quarter, while the annual net profit stood at INR 32 Mn. Revenue from operations for the year reached INR 10,308 Mn, marking an 11% increase year-on-year.
FY26 Financial Performance
The annual results reflect a contraction in profitability compared to the previous year. The following table summarises the key consolidated financial metrics for the year ended March 31, 2026:
| Metric | FY26 Current | FY25 Previous |
|---|---|---|
| Net Profit | INR 32 Mn | INR 343 Mn |
| Revenue | INR 10,308 Mn | INR 9,283 Mn |
| EBITDA | INR 680 Mn | INR 934 Mn |
| EBITDA Margin | 6.60% | 10.06% |
While revenue increased year-on-year, a significant rise in total expenses, including finance costs and material costs, impacted the bottom line. For the quarter ended March 31, 2026, revenue from operations was INR 2,824 Mn, compared to INR 2,532 Mn in the corresponding period of the previous year.
Operational Highlights
The Company surpassed the INR 1,000 crore revenue milestone during FY2025-26. Total sales volume in Q4 FY26 grew by 16% sequentially and 5% on a year-on-year basis. For FY26, total sales volume grew by 9% over FY25. As of March 31, 2026, the Net Debt-to-Equity ratio stood at 0.58x, while cash profit for FY26 stood at INR 34 crore.
Dividend Declaration
The Board of Directors has recommended a final dividend of Rs. 0.5 per equity share of face value Rs. 5.00, representing 10%, for the financial year 2025-26. This dividend is subject to the approval of shareholders at the ensuing 54th Annual General Meeting scheduled on August 18, 2026. The record date for determining entitlement has been fixed as August 5, 2026.
Historical Stock Returns for Oriental Aromatics
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.89% | +5.58% | +7.85% | +16.61% | -13.34% | -58.47% |
What specific cost reduction or operational efficiency measures is Oriental Aromatics planning to implement in FY27 to recover its EBITDA margin from 6.6% back toward the 10% range?
How is the company planning to manage its rising finance costs and debt obligations given the current Net Debt-to-Equity ratio of 0.58x, and what is the targeted deleveraging timeline?
Will the significant drop in net profit from INR 343 Mn to INR 32 Mn impact the company's ability to fund its planned capital expenditure or expansion projects in the near term?
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