Orkla India reported a 19.2 per cent rise in profit to ₹91 crore for the second quarter of FY27. Revenue grew 19.4 per cent to ₹776 crore, helped by strong spice sales. Managing Director Sanjay Sharma said, "Convenience foods growth was a little muted, largely because Diwali was in the second quarter last year."
Orkla India reported a 19.2 per cent year-on-year increase in profit after tax (PAT), before exceptional items, to ₹91 crore in the second quarter of FY27, compared with ₹77 crore in the corresponding period last year.
Revenue from operations grew 19.4 per cent to ₹776 crore, driven by strong growth in the spices business and domestic markets.
Revenue from the spices segment rose 25.1 per cent to ₹498 crore, while convenience foods revenue increased 7.7 per cent to ₹271 crore. The latter's growth was moderated by a shift in the festive calendar, with Diwali falling in November this year, compared with the second quarter last year.
Domestic revenue grew 20 per cent to ₹623 crore, while international revenue increased 11.7 per cent to ₹145 crore.
Speaking to businessline, Sanjay Sharma, Managing Director and CEO of Orkla India, said the company had sustained its double-digit growth momentum from the first quarter, with domestic growth improving to 18.4 per cent. He added that Kerala, which had been lagging earlier, contributed to the improvement in both domestic and spices growth during the quarter.
"Convenience foods growth was a little muted, largely because Diwali was in the second quarter last year. That created a high base, whereas this year Diwali falls in the third quarter," Sharma said.
The company continues to face cost pressures from rising input prices, including sugar, crude-linked packaging materials and spices. Sharma said crude oil prices had crossed $110 a barrel during the quarter, while sugar and plastic prices had also risen. Speculative increases in spice prices added to the pressure.
"We have taken price increases, but the full effect of those increases has not yet flowed through to our profit and loss account. That has also led to some pressure on margins," he said.
Sharma added that inflation remained a challenge and that the company would have to monitor developments in the geopolitical environment and their impact on input costs.
Digital commerce continued to grow faster than the overall business, increasing 23 per cent year-on-year and contributing 10 per cent of domestic revenue. Outside South India, the channel recorded growth of 33.6 per cent.