Orkla India Q2 FY27 Results (NSE: ORKLAINDIA)

4 Nov 2026 · Analysis by Alpha Inflection

Signal: Growth reaccelerated

The read

The key inflection is revenue growth accelerating to 19.4% YoY from 10.4% in Q1FY27, but the margin arc remains fragile: gross margin contracted 190bps YoY to 42.5% as raw-material intensity rose to 46.9%, leaving PAT growth at 19.2% rather than signaling a fresh margin-led expansion.

P&L walk

Consolidated revenue increased 19.4% YoY and 17.7% QoQ to ₹7,761.6 million, but gross margin fell to 42.5% from 44.4% as raw-material intensity rose to 46.9%; PAT still grew 19.2% to ₹914.2 million with no current-quarter exceptional charge.

Segments

The company reports a single operating segment, Food products and beverages; the consolidated PAT uplift over standalone was ₹18.3 million in Q2FY27, despite a ₹1.1 million loss from the associate and joint venture.

Key positives

• Consolidated revenue reached ₹7,761.6 million, up 19.4% YoY and 17.7% QoQ, re-accelerating from 10.4% YoY in Q1FY27.
• Other expenses rose 17.5% YoY, 190bps slower than revenue growth, and fell to 17.8% of revenue from 18.4% a year ago.
• PAT increased 19.2% YoY to ₹914.2 million while EPS increased 19.6% to ₹6.7; the PAT-to-EPS cross-check is clean.
• Operating cash flow was ₹1,081.9 million in H1FY27 versus an outflow of ₹232.2 million in H1FY26.

Key concerns

• Gross margin compressed 190bps YoY to 42.5% as raw-material and packing-material cost increased to 46.9% of revenue from 44.1%, indicating cost absorption; the filing does not disclose the driver.
• Purchase of stock-in-trade increased to 15.9% of revenue from 11.6% YoY, a 430bps increase that compounded gross-margin pressure.
• PPE declined to ₹3,224.5 million from ₹3,302.6 million at March 31, 2026 while depreciation remained broadly flat at ₹126.4 million versus ₹127.1 million YoY, warranting monitoring of the asset-investment cycle.

View original filing

Research and educational content only. Not investment advice.