Q1 2026 Oriental Aromatics Ltd Earnings Call Transcript
Key Points
- Oriental Aromatics Ltd (BOM:500078) achieved a 10% year-on-year increase in production volume despite a planned maintenance shutdown.
- Group sales volume rose 4% year-on-year, driven by enhanced output from the hydrogenation plant and initial sales from the Mahad facility.
- EBITDA margin improved sequentially to 8.03%, reflecting the promising ramp-up phase of the Mahad facility.
- Stable raw material prices provide cost visibility, and disciplined sourcing helps manage foreign exchange pressures effectively.
- The company is optimistic about a stronger Q2 due to festive demand, robust capacity, and the right product mix.
- Net profit after-tax stood at INR 0.5 crores, impacted by higher depreciation and finance costs from recent capacity expansions.
- EBITDA decreased to INR 18 crores compared to INR 22 crores in the corresponding quarter of the previous year.
- The Mahad facility is currently running at only 20% to 30% capacity utilization, indicating a slow ramp-up.
- Recent developments regarding a 50% tariff on certain Indian exports could create near-term uncertainty in select overseas shipments.
- The fragrance division's margins are restricted due to the impact of post-commissioning activities at the Mahad facility.
Ladies and gentlemen, good day, and welcome to Oriental Aromatics Limited Q1 FY26 earnings conference call. (Operator Instructions)
I now hand the conference over to the management. Thank you. And over to you.
My name is Nupur Jainkunia from Valorem Advisors. We represent the Investor Relations of Oriental Aromatics Limited. On behalf of the company, I would like to thank you all for participating in the earnings conference call for the first quarter of financial year 2026. Before we begin, let me mention a short cautionary statement. Some of the statements made in today's earnings call may be forward-looking in nature.
Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those anticipated. Such statements are based on management's beliefs as well as assumptions made by and information currently available to the management. Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any
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