Revenue edges up but higher festive spends and one-time costs weigh on quarterly earnings
Orkla India, the parent company of MTR Foods, reported a 7.3 per cent decline in net profit for the July–September quarter of FY26, with earnings falling to Rs 77 crore. This marks the company’s first quarterly results since its stock market debut.
Revenue from operations rose to Rs 650.2 crore, reflecting a 4.9 per cent increase over the same period last year and an 8.9 per cent rise compared to the previous quarter.
The Convenience Foods division delivered strong momentum, posting a 19.2 per cent year-on-year jump in revenue. The surge was driven by festive-season demand, particularly in South Indian sweets, which grew 26.4 per cent year-on-year.
Volumes in the Spices category improved 5.9 per cent over last year, though overall revenue in the segment remained flat at 0.1 per cent due to ongoing price deflation in key raw materials. The company noted that MTR’s pure spices line recorded solid double-digit volume growth in its core geographies.
The GCC region, one of Orkla India’s biggest international markets, registered a 14.7 per cent rise in revenue, supported by strong uptake in both convenience foods and the Arabic spices portfolio.
Digital commerce continued to be the fastest-expanding channel for the company, growing at a 41.5 per cent CAGR between FY23 and FY25. In Q2 FY26 alone, online sales were up 48.7 per cent year-on-year.
Despite operational efficiencies achieved during the quarter, Ebitda slipped 3.3 per cent year-on-year to Rs 109.7 crore. The decline was attributed to higher advertising and promotional spending during the festive period, one-off expenses linked to GST 2.0 transition, and lower production-linked incentives. When adjusted for these one-time costs, Ebitda increased 7.6 per cent for the quarter.
“In this quarter, we continued to deliver high single-digit volume growth. This is the second consecutive quarter of strong volume growth, pursuant to which our H1 FY26 volume growth has been the highest when compared with that of past three preceding financial years”, said Sanjay Sharma, MD and CEO, Orkla India.
