Oriental Aromatics Limited has informed the Exchange about Transcript
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Oriental Aromatics filed the transcript of its Q1 FY'26 earnings call held on August 11, 2025. Consolidated operating revenue stood at INR 226 crores, up 4.5% year-on-year but down 10.9% sequentially, while EBITDA was INR 18 crores with margin at 8.03% versus 10.29% a year ago. Net profit was a weak INR 0.5 crores, dragged by higher depreciation and finance costs from recent capacity expansions, with cash profit at INR 8 crores. Management maintained its EBITDA margin guidance of 8-10% and reiterated the 1.7x asset turnover expectation on its INR 200+ crore investment over 2-3 years. The new Mahad greenfield facility is still in ramp-up at 20-30% capacity, while other plants are running at 75-80%. Management sounded optimistic about a stronger Q2 on festive demand, though flagged the potential impact of a 50% US tariff on certain Indian exports.
Near-term profitability remains under pressure as margins are well below the company's historical 14-17% range, with PAT nearly flat for the quarter. However, the festive demand outlook, planned Mahad ramp-up, and disciplined CAPEX pause (peak debt of INR 170 crores versus earlier estimate of INR 360 crores) provide some comfort for shareholders looking for a recovery in coming quarters.