Orkla India management guides for double-digit volume-led growth ahead; stock jumps 4%

Shares of Orkla India surged more than 4% on Wednesday after the company’s management expressed confidence in sustaining double-digit growth going forward, supported by both pricing and volume expansion.

Speaking in an interview with a media channel, the company said it expects overall revenue growth to be driven by a combination of price hikes and volume growth. Management also reiterated that the company remains focused on driving volume-led growth across its portfolio.

The company further noted that supply chain operations to West Asia are beginning to stabilise, which could support smoother business execution and international operations in the coming quarters.

The commentary comes after Orkla India reported a mixed set of quarterly earnings. Revenue for the quarter stood at ₹625.8 crore, up 4.97% year-on-year from ₹596.18 crore, though marginally lower by 1.61% sequentially.

EBITDA came in at ₹97.28 crore compared to ₹95.22 crore in the year-ago period, reflecting a growth of 2.16% YoY. However, EBITDA declined 5.89% on a quarter-on-quarter basis. EBITDA margin stood at 15.54% versus 15.97% a year earlier and 16.25% in the previous quarter.

Profit before tax excluding exceptional items rose 6.28% YoY to ₹98.83 crore from ₹92.99 crore. On a sequential basis, PBT increased 7.26%.

Net profit more than doubled to ₹73.43 crore compared to ₹35.24 crore in the corresponding quarter last year, registering a sharp 108.37% YoY growth. Sequentially, PAT rose nearly 30%.

The sharp move in the stock followed management’s optimistic growth commentary and improving visibility on operational trends, particularly around demand and overseas supply-chain normalisation.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice.