Manorama Industries shares surge over 8% after strong Q1 results

Manorama Industries shares rallied over 8% to Rs 1,747.25 on the BSE on Friday after the specialty fats and cocoa butter equivalent (CBE) manufacturer reported strong earnings for the June quarter. The sharp buying momentum pushed the stock near its 52-week high of Rs 1,867, driven by investors reacting positively to a 67.6% surge in net profit.

The strong operational performance was backed by an improved value-added product mix, enhanced processing capacity, and robust demand across key consumer industries like chocolate, confectionery, and cosmetics.

Financial performance

For the first quarter ended June 30, 2026, Manorama Industries posted a consolidated net profit of Rs 786.6 million, marking a massive 67.6% jump compared to Rs 469.4 million reported in the corresponding period last fiscal. On a sequential basis, net profit surged 49.9% from Rs 524.6 million in the March quarter.

Consolidated revenue from operations increased by 39.5% year-on-year to reach Rs 4,040.1 million, up from RS 2,895.5 million in Q1 FY26. This performance marked the first time the company crossed the RS 4,000 million quarterly revenue mark. On a quarter-on-quarter basis, revenue rose 3.2% from RS 3,913.4 million. The revenue mix between domestic and export markets stood at 40:60 during the quarter, highlighting its diversified global footings.

Operating performance remained robust, with EBITDA rising 42.2% year on year to Rs 1,062.1 million compared to RS 747.0 million in the base quarter. EBITDA margin expanded by 49 basis points year on year to 26.3%. Profit after tax margin also expanded by 326 basis points to reach 19.5%, aided by operational efficiencies and improved leverage. Diluted earnings per share stood at Rs 13.17 compared to Rs 7.85 a year ago.

Business expansions and global sourcing updates

During the quarter under review, Manorama Industries completed key strategic milestones to reinforce its global supply chain. The company incorporated a wholly owned subsidiary, Manorama Savannah Agro Chad SARL, in the Republic of Chad to strengthen its Shea sourcing operations in West Africa.
Additionally, the firm acquired nearly 10 hectares (24 acres) of land in Burkina Faso for a dedicated Shea seed processing facility. Regulatory approvals for this facility are currently underway. The company noted that these investments in West Africa will enhance raw material security, traceability, and supply chain proximity to international customers.The company also announced the successful completion of its Qualified Institutions Placement (QIP), which has strengthened its balance sheet and provided the financial flexibility to fund future growth opportunities across manufacturing, raw material sourcing, and value-added product categories.

Growth outlook

Commenting on the results, Ashish Saraf, Chairman and Managing Director of Manorama Industries, stated that the company commenced FY27 with strong momentum, driven by sustained demand across end-user industries and a growing contribution from its specialty fats portfolio.

Looking ahead, management expressed confidence in maintaining its long-term growth trajectory. The company plans to leverage its expanding product offerings, deeper customer partnerships, and growing presence in cocoa butter alternatives to deliver sustainable growth and long-term value for stakeholders.