Orkla India, the owner of the MTR and Eastern spice brands, is betting on structural fixes and sharper execution to drive the next leg of growth, even as macro pressures persist. Post Q4 FY26, MD and CEO Sanjay Sharma said the company’s growth was “consumption-driven” rather than price-led, despite spice deflation pressures.

The company’s PAT grew 7.5 per cent year-on-year to ₹74 crore for Q4 FY26, while revenue rose 5 per cent to ₹626 crore despite geopolitical volatility and temporary market disruptions in Kerala.

Sharma said one of the biggest headwinds during the quarter came from Orkla’s ongoing restructuring of Eastern’s Kerala distribution network. “The Kerala restructuring may cause near-term disruptions, but these are structurally the right things to do to build a scalable distribution engine,” he said.

According to Sharma, Eastern historically operated on a direct-to-retail model, but evolving trade formats and changing consumer behaviour required a more segmented approach. The company is now creating dedicated systems for spices, convenience foods and modern trade channels to improve reach, outlet execution and visibility.

“Convenience foods remain highly underdeveloped for Eastern, and that is a major growth opportunity for us,” he added.

Macro headwinds, consumption trends

The company also navigated rising freight costs and supply-chain disruptions due to the West Asia crisis. However, Sharma said consumer demand in staples and foods continues to remain resilient.

“Even after taking 6.5 per cent price hikes in Q4, we still saw strong volume momentum in spices,” he said.

“The severe deflation we faced over the last two years has now come to an end. Our focus going ahead will be volume-led growth supported by calibrated pricing actions,” Sharma added.

He also noted that consumption momentum, particularly in staples and foods, remains intact despite inflationary concerns, aided by easing inflation and improving consumer sentiment.

Published on May 20, 2026