Orkla India’s Q2 revenue rises 19.4 per cent as spices and digital commerce drive growth

Orkla India is broadening its packaged-food presence beyond its southern strongholds through convenience foods, digital commerce and wider distribution. The strategy helped the branded spices and food company deliver revenue from operations of Rs 776 crore in the second quarter of FY27, up 19.4 per cent YoY.

Profit after Tax before exceptional items, net of tax, rose 19.2 per cent to Rs 91 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 12.6 per cent to Rs 124 crore, though the EBITDA margin fell by 100 basis points to 15.9 per cent as higher input costs weighed on profitability. The profit after tax margin was steady at 11.8 per cent.

Product sales grew 18.4 per cent, while volume growth was 2.9 per cent. This indicates that pricing and product mix remained meaningful contributors during a quarter marked by inflation in key agricultural inputs such as spices. Management said revenue growth was broad-based across categories, geographies and channels.

The spices business was the main growth engine, with quarterly revenue rising 25.1 per cent YoY to Rs 498 crore. Convenience Foods revenue increased 7.7 per cent to Rs 271 crore, despite a shift in the festive calendar into the third quarter. Domestic revenue grew 20 per cent to Rs 623 crore, while international revenue rose 11.7 per cent to Rs 145 crore amid geopolitical volatility.

Digital commerce grew 23 per cent and accounted for 10 per cent of domestic revenue. Growth outside South India was stronger at 33.6 per cent, supporting Orkla India’s effort to use online channels and Project Bolt to build a wider national platform. The company introduced 15 innovations during the quarter and said its Kerala distribution restructuring was progressing, although benefits are expected to build over multiple quarters.

For the first half ended September 30, 2026, revenue from operations rose 15.1 per cent to Rs 1,435 crore. EBITDA grew 7.8 per cent to Rs 239 crore, while the EBITDA margin declined to 16.6 per cent from 17.8 per cent a year earlier.

As of 3:28 pm on November 6, 2026, Orkla India shares were trading at Rs 570.20, down 0.14 per cent from the previous close. The stock was about 20 per cent below its 52-week high of Rs 713.40, while remaining above its 52-week low of Rs 509.30. At the prevailing price, the company had a market capitalisation of about Rs 7,824 crore and traded at 25.31 times trailing 12-month earnings.

What This Means for Investors

The quarter reinforces that Orkla India has multiple growth drivers beyond its traditional regional spices franchise. Strong spices growth, a 20 per cent rise in domestic revenue and digital commerce expansion outside South India support its attempt to build a more diversified packaged-food platform. The faster digital channel also provides access to convenience foods and blended-spice formats, which can improve product mix over time. However, the 2.9 per cent volume growth shows that a significant portion of the sales increase came from pricing and mix during a period of input inflation.

The result is supportive for the operating trajectory, but the margin trend remains the key qualification. EBITDA margin declined to 15.9 per cent despite management’s cost and pricing actions, while the Kerala distribution overhaul is still in progress. The company has financial flexibility, with Rs 544.50 crore of Mutual Fund investments as of March 31, 2026, and no disclosed Bank borrowings. At 25.31 times trailing earnings, sustained execution in convenience foods, digital commerce and Kerala will be important to support earnings visibility.

Disclaimer: The article is for informational purposes only and not investment advice.