Oriental aromatics Limited has announced that ICRA Limited has reaffirmed the company's credit ratings while revising the outlook from stable to negative. The rating agency communicated this decision through their letter dated February 23, 2026, covering financial instruments worth Rs. 393.33 crore.

Credit Rating Details

ICRA Limited maintained the existing credit ratings across Oriental Aromatics' financial instruments but implemented an outlook revision. The rating reaffirmation covers both fund-based and non-fund-based facilities across different tenures.

Regulatory Compliance

The company disclosed this information in compliance with Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. The announcement also adheres to SEBI circular SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023, which mandates timely disclosure of credit rating actions.

Communication and Documentation

Oriental Aromatics Chairman & Managing Director Dharmil A. Bodani signed the regulatory filing on February 23, 2026. The company has uploaded the complete rating information on its official website at www.orientalaromatics.com for stakeholder access.

The rating reaffirmation maintains Oriental Aromatics' existing credit profile while the negative outlook revision indicates ICRA's assessment of potential challenges in the company's credit fundamentals over the rating horizon.

Oriental Aromatics Limited held its quarterly earnings conference call on February 13, 2026, where management discussed the company's third quarter and nine-month FY26 performance with institutional investors and analysts. The call provided detailed insights into operational strategies, market challenges, and future outlook amid ongoing industry headwinds.

Management Commentary on Q3FY26 Results

Chairman and Managing Director Dharmil A. Bodani, along with Executive Director Shyamal A. Bodani and CFO Girish Khandelwal, addressed investors regarding the company's performance during a challenging quarter. The management reiterated their strategy of protecting and growing volumes while deepening customer relationships in a soft pricing environment.

For the nine-month period FY2026, operating revenue reached Rs. 748 crore, representing an 11% year-on-year increase, while EBITDA stood at Rs. 49 crore with a margin of 6.49%.

Operational Performance and Volume Growth

Despite margin pressures, the company demonstrated resilience in operational metrics. Production increased 3% year-on-year in Q3FY26, while sales volumes grew 10% year-on-year. For the nine-month period, both production and sales volumes recorded 10% growth, reinforcing management's focus on volume maximization and market share expansion.

The company experienced sequential softness in Q3FY26, particularly in specialty aroma ingredients and camphor volumes, consistent with historical seasonal patterns. However, plant-wise performance showed encouraging trends with Bareilly sales up 27% year-on-year and Vadodara production increasing 15% year-on-year.

US Trade Deal Impact and Market Outlook

Management highlighted the positive impact of recent trade developments, particularly regarding US tariff reductions. The company derives 16% to 20% of its sales from the American market, which had been affected by tariff uncertainties. Executive Director Shyamal Bodani noted that American customers had been buying hand-to-mouth due to uncertainty, but positive signs are emerging with customers returning to place orders.

The tariff reduction from previous levels to 18% provides Oriental Aromatics with a competitive advantage over Chinese suppliers, potentially improving pricing power and market positioning in North America.

Mahad Facility Progress and Strategic Priorities

The management provided updates on the Mahad facility, which remains in its stabilization phase. Real production at the 18-acre site commenced in June 2025, and the plant is currently operating at 30-35% capacity within seven months of commercial operations. The facility targets a 30% domestic and 70% export sales split with a capacity of 250 tonnes.

Management expects the facility to achieve greater independence in the coming quarters, following the typical six-month cycle between sample submission and commercial approval for global customers.

Financial Position and Future Strategy

As of December 31, 2025, the company maintained a net debt-to-equity ratio of 0.65x, providing financial flexibility for growth investments. Cash profit for nine-month FY2026 stood at Rs. 22.65 crore.

Looking ahead, management outlined three key priorities: protecting and growing volumes across all product segments, executing process improvements to rebuild margins independent of pricing cycles, and accelerating Mahad's commercial ramp-up to transform it from a temporary drag to a meaningful growth driver.