Orkla India Ltd (formerly known as MTR Foods) reported a consolidated net profit of ₹57 crore for the December quarter, down from ₹66 crore a year earlier, impacted by continued deflation in raw material prices.
Revenue from operations rose 3.4% to ₹636 crore, comprising product sales and other income, including production-linked incentives, export incentives and scrap sales. The results also included a ₹16 crore impact arising from the implementation of New Labour Codes.
Managing Director & CEO Sanjay Sharma said the company used the deflationary phase to realign Minimum Retail Prices with lower mandi prices, expand household penetration and strengthen its leadership in branded spices, particularly in South India. Growth in convenience foods, digital commerce and international markets helped offset lower realisations in spices, he said in a letter to shareholders.
Rural markets were a key growth driver, recording double-digit volume expansion during the quarter. The company expanded distribution in smaller towns and villages, rolled out region-specific campaigns and introduced affordable pack sizes to boost trial and adoption. Stronger distributor partnerships and improved retail visibility enhanced availability, while digital channels widened consumer access.
Internationally, around 70% of revenues came from GCC countries. Orkla India has set up a dedicated international business unit and is expanding its value-added convenience foods portfolio in the region. New launches include ready-to-eat sweets, five-minute breakfast formats for the Indian diaspora and Arabic spice variants tailored to local tastes.
Digital commerce continued to gain traction, contributing 9.5% of domestic revenue compared with 6.8% a year ago. The launch of MTR Prakriti, a digital-first brand with its own direct-to-consumer platform, marks a strategic move beyond conventional distribution. Positioned as a premium range of authentic, single-origin spices, the brand targets metro consumers across India and supports expansion beyond the company’s southern base.
On capital allocation, Sharma said priorities remain brand building, distribution expansion, capacity optimisation and strengthening digital capabilities. Backed by its multinational parent, the company will continue disciplined, growth-oriented investments while maintaining balance sheet prudence.
Reaffirming its focus on governance, food safety, sustainability and responsible capital deployment, Orkla India said it is well placed to accelerate value creation and deliver sustainable long-term returns.
“Looking ahead, our priorities remain unchanged — deepening penetration in core geographies, strengthening brands through culturally rooted marketing, scaling digital commerce and expanding our international business, particularly in the GCC. With strong fundamentals and improving macro tailwinds, we remain cautiously optimistic about delivering consistent and profitable growth,” Sharma said.