Oriental Aromatics Limited reported a consolidated revenue from operations of INR 1,030.8 crore for the financial year ended March 31, 2026, marking an 11% year-on-year growth. This milestone was achieved despite a challenging external environment characterized by pricing pressure and raw material cost inflation. The Board has recommended a final dividend of INR 0.50 per equity share, subject to shareholder approval at the upcoming Annual General Meeting.

For the fourth quarter of FY26, operating revenue stood at INR 282 crore, reflecting a growth of 12% quarter-on-quarter and 11% year-on-year. EBITDA for the quarter improved to INR 19.5 crore compared to INR 13.2 crore in the previous quarter, with margins expanding to 6.89%. Profit after tax for Q4 FY26 was INR 3.98 crore, recovering from a loss of INR 1.92 crore in the preceding quarter.

Financial Performance

The company's full-year EBITDA declined to INR 68 crore from INR 93.3 crore in FY25, resulting in EBITDA margins of 6.6% compared to 10.06% in the previous year. Profit after tax for FY26 stood at INR 3.3 crore, down from INR 34.3 crore in FY25. The net debt equity ratio as of March 31, 2026, was 0.58x, and the Return on Capital Employed (ROCE) was 4.85%.

Operational Highlights

Total sales volume for Q4 FY26 increased by 16% quarter-on-quarter and 5% year-on-year. For the full year, total sales volume grew by 9% over FY25, while production volume increased by 5%. Management attributed the margin compression to a combination of factors, including pricing pressure in the Aroma Ingredients division, rising raw material costs, currency depreciation, and the drag from the Mahad facility ramp-up.

The Mahad facility, operated by Oriental Aromatics & Sons Limited, continues to be in the ramp-up phase and is currently impacting consolidated EBITDA margins by 1% to 1.5%. Management expects the plant to achieve EBITDA neutrality at a utilization level of 75% to 80% within the next year. The facility is anticipated to add approximately INR 60 crore to INR 65 crore in revenue at optimum utilization.

Outlook

Management noted that input costs, particularly for gum turpentine, CST, and alpha-pinene, are at all-time highs. While the company has implemented price increases of 25% to 27% to mitigate these costs, the buyer's market has led to resistance. The company remains focused on volume growth, market share expansion, and internal efficiency programs to rebuild margins structurally.

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:

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.