The company sells food products under MTR brand, a range of spices under Eastern brand, and sells ready-to-cook spice mixes under Rasoi Magic brand. It has a strong operating base in South India, which contributes 70% of the revenue, reflecting geographic concentration.
The company’s revenue and profitability have grown over the past three years. Given these factors, investors with high risk appetite may consider the IPO for the long-term.
AgenciesSpices and food products co’s revenue and profit growth makes the IPO attractive for long-term, high-risk investors
Business
Incorporated in 1996, Orkla India offers spices and convenience foods. It is a subsidiary of the Norway-listed Orkla ASA. The company exports to 45 countries and its spices brand Eastern has been the country’s largest branded spices exporter for the past 24 years. Exports form around 20% of the revenue.
The company’s exposure to the US is limited to 4% of the revenue. It holds regional leadership in South India with 41.8% market share in Kerala, 31.2% in Karnataka, and 15.2% combined in Andhra Pradesh and Telangana.
The company has nine manufacturing units and additional contract manufacturing facilities in the UAE, Thailand, and Malaysia with combined installed capacity of 1.8 lakh tonnes per annum, and capacity utilisation of 46%. About 65% of the revenue comes from spices. About 20% of revenue comes from exports and 4% from the US.
Financials
The company’s revenue and operating profit before depreciation and amortization (EBITDA) grew by 5% and 12.6% annually to ₹2,394.7 crore and Rs 396.4 crore, respectively, in FY23-25. Slower revenue growth was witnessed in FY25 due to lower price realisation in key spices. EBITDA margin improved to 16.6% in FY25 from 14.4% in FY23.
Profit before tax grew annually by 17.6% to ₹355 crore. However, net profit dropped to ₹255.7 crore from Rs 339.1 crore between FY23 and FY25 due to deferred tax adjustments on account of Eastern Condiments merger.
Operating cash flow improved to ₹391.7 crore in FY25 from ₹190.4 crore in FY23. In the June 2025 quarter, revenue and net profit rose by 6% and 10% to ₹597 crore and ₹78.9 crore, respectively, year on year.
Valuation
Considering the post-IPO equity and net profit for FY25, the company demands a price-earnings (P/E) multiple of up to 39. It does not have a direct publicly listed spices-to-food-products peer.
Anchors Invest ₹500 crore
Meanwhile PTI reported that Orkla India has raised around ₹500 crore from anchor investors, a day before its maiden public opening for subscription. The prominent investors included Nippon India MF, Aditya Birla Sun Life MF, LIC MF, Baroda BNP Paribas MF, Nomura Funds Ireland, Government Pension Fund Global, Jupiter India Fund, and Pinebridge India Equity Fund.