Oriental Aromatics Limited — Q3 FY26

Oriental Aromatics reported Q3 FY26 revenue of ₹252 cr (+13% YoY), but EBITDA margin contracted sharply to 5.26% (down ~559 bps YoY) and PAT swung to a loss of ₹1.92 cr. Volume growth remained healthy (sales +10% YoY), driven by market share gains in a soft pricing environment. However, margin compression persisted due to pricing pressure in aroma ingredients, unfavorable seasonal mix (post-festive camper slowdown), and the drag from Mahad's greenfield ramp-up (still at 30-35% utilization). Management guided for 8-10% full-year revenue growth and expects Mahad to reach breakeven in 2-3 quarters as commercial shipments ramp up. The recent US-India trade deal (tariff reduction to 18%) is seen as a positive catalyst for North American demand. Key risk: if pricing recovery is delayed or Mahad stabilization takes longer than expected, margins could remain under pressure.