Orkla India is shifting its international strategy to offer a wider range of food products in GCC markets, moving beyond its traditional spice business. The company reported a 10.4% revenue increase in the June 2026 quarter, even as it navigates margin pressure from high spice prices.
Orkla India, the parent company of brands like MTR and Eastern, is broadening its international strategy. The company is moving to offer a comprehensive food portfolio in the Gulf Cooperation Council (GCC) markets, shifting away from its long-standing focus on spices alone. This strategic change follows a strong performance in the region, where the company saw an 18.1% rise in business during the June quarter.
For the first quarter of the 2027 fiscal year, Orkla India reported a consolidated revenue of ₹659 crore, marking a 10.4% increase compared to the same period last year. Profit after tax also grew, reaching ₹87.7 crore, an 11.1% improvement year-on-year. While revenue and profit figures showed growth, the company faced some operational headwinds. EBITDA margins contracted to 17.05% from 18.73% a year ago. This dip is largely attributed to the rising costs of raw materials, particularly chili and coriander, which have seen sustained inflationary pressure.
Domestically, Orkla India is heavily pushing its convenience food and breakfast product lines. The company has introduced a new three-pronged strategy, including a range of protein-rich breakfast items aimed at younger consumers. It is also leveraging digital commerce to expand its reach and scaling up production of regional favorites like rice and rava batter in key markets such as Hyderabad. To improve efficiency, the company has begun restructuring its distribution networks, including a pilot project in Kerala that has shown early improvements in sales productivity.
Investors should keep an eye on how these new product lines and distribution changes perform in the coming months. While the company maintains a strong financial footing with a zero net-debt status, its profitability remains sensitive to commodity price fluctuations. The ongoing inflation in spice prices continues to be a factor that can impact operating margins. Additionally, the company faces the challenge of managing international supply chains amidst complex geopolitical conditions in West Asia, which could influence the growth of its GCC business.
Looking ahead, stakeholders can watch for updates during the upcoming Annual General Meeting scheduled for August 19, 2026. This meeting is expected to cover internal management plans and provide further insights into the company’s strategic priorities for the remainder of the year.