Oriental Aromatics Ltd
BSE:500078
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Oriental Aromatics Ltd
Oriental Aromatics Ltd. is a holding company, which engages in the manufacture of fine chemicals. The company is headquartered in Mumbai, Maharashtra and currently employs 714 full-time employees. The company went IPO on 2019-07-11. The firm is a manufacturer of various specialty-based aroma chemicals, and camphor, with a product range, including synthetic camphor, terpineol, pine oils, astromusk, other specialty aroma chemicals. Its custom-designed fragrances are in fragrances, incense sticks, candles, and various fast-moving consumer goods (FMCG) products, such as soaps, shampoos, hair oils and detergents, among others. Its products have applications in various industries ranging from food, beverages, perfumery, cosmetics, and toiletries. The company also provides flavors for ice creams, bakeries, confectioneries, beverages, chewing gums and chocolates, among others. In addition, it exports its products to Mexico, the United States, Argentina, Brazil, Chile, Colombia, Suriname, Austria, France, Germany, Switzerland, Turkey, among others.
Oriental Aromatics Ltd. is a holding company, which engages in the manufacture of fine chemicals. The company is headquartered in Mumbai, Maharashtra and currently employs 714 full-time employees. The company went IPO on 2019-07-11. The firm is a manufacturer of various specialty-based aroma chemicals, and camphor, with a product range, including synthetic camphor, terpineol, pine oils, astromusk, other specialty aroma chemicals. Its custom-designed fragrances are in fragrances, incense sticks, candles, and various fast-moving consumer goods (FMCG) products, such as soaps, shampoos, hair oils and detergents, among others. Its products have applications in various industries ranging from food, beverages, perfumery, cosmetics, and toiletries. The company also provides flavors for ice creams, bakeries, confectioneries, beverages, chewing gums and chocolates, among others. In addition, it exports its products to Mexico, the United States, Argentina, Brazil, Chile, Colombia, Suriname, Austria, France, Germany, Switzerland, Turkey, among others.
Record Sales: Oriental Aromatics posted its highest-ever quarterly sales in Q2 FY26, with group turnover rising 20% sequentially to INR 271 crores.
Volume Growth: Production increased by 26% quarter-on-quarter and 10% year-on-year, with sales volume up 30% QoQ and 21% YoY, reflecting strong demand and market share gains.
Margin Compression: EBITDA margin dropped to 6.34% from 11.20% last year, mainly due to conscious price alignment, ongoing ramp-up costs at Mahad, and persistent pricing pressures.
Profit Decline: Net profit for the quarter fell sharply to INR 0.74 crores from INR 14.78 crores a year earlier, as profitability was impacted by lower margins and operational pressures.
Mahad Plant Drag: The new Mahad facility is currently a 1.5%–2% drag on group EBITDA due to low utilization, though management expects this to normalize as the plant ramps up.
Outlook: Management remains optimistic on demand and aims to restore margins to the 8%–10% target as capacity utilization and process improvements advance.