Oriental Aromatics Ltd (NSE: OAL) Q1 2026 Earnings Call dated Aug. 11, 2025
Corporate Participants:
Unidentified Speaker
Dharmil Bodani — Chairman & Managing Director
Shyamal Bodani — Executive Director
Girish Khandelwal — Chief Financial Officer
Parag Satoskar — Chief Executive Officer
Analysts:
Unidentified Participant
Nupur Jainkunia — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Oriental Aromatics Ltd. Q1FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call please signal an operator by pressing star then zero on your touch tone telephone. I now hand the conference over to the management. Thank you and over to you.
Nupur Jainkunia — Analyst
Hello, my name is Nupur Jenkunia from Valeram Advisors. We represent the investor relations of Oriental Aromatics Ltd. On behalf of the company I would like to thank you all for participating in the earnings conference call for the first quarter of financial year 2026. Before we begin let me mention a short cautionary statement. Some of the statements made in today’s earnings call may be forward looking in nature. Such forward looking statements are subject to risks and uncertainties which could cause actual results to differ from those anticipated. Such statements are based on management’s belief as well as assumptions made by and information currently available to the management.
Audience are cautioned not to place any undue reliance on these forward looking statements in making any investment decision. The purpose of today’s earnings call is purely to educate and bring awareness about the company’s fundamental business and financial quarter under review. Now let me introduce suitors of management participating with us in today’s earnings call and hand it over to them for their opening remarks. We have with us Mr. Dharmal Budhani, Chairman and Managing Director Mr. Shyamal Budhani, Executive Director Mr. Girish Khandelwa, Chief Financial Officer Mr. Parag Sadokar, Chief Executive Officer and Ms. Kiranpreet Gill, Company Secretary.
Without any further delay I request Mr. Dharmet Boudani to start with his opening remarks. Thank you and over to you sir.
Dharmil Bodani — Chairman & Managing Director
Thank you Purubhani. Good afternoon everyone and welcome to our earnings call to discuss the performance of the first quarter of the financial year 2026. Our executive director Shyamal Bodani shall be briefing you all on the operational highlights for the first quarter after which our CFO Mr. Girish Khandelwal will brief you on the financial highlights. Over to you Shamal.
Shyamal Bodani — Executive Director
Thank you Dharma. Good afternoon ladies and gentlemen. It is my privilege to address you at the close of a quarter that underscores the resil, resilience and adaptability of Oriental Aromatics Limited in Q1 FY 202526 we achieved a 10% year on year increase in production volumes even as we undertook a planned maintenance shutdown at our Bareilly site. To safeguard long term asset health Group sales volume rose 4% year on year driven primarily by the enhanced output of our hydrogenation plant, improved market acceptance and the initial sales contribution from our Mahad facility. This growth supported by the trust of our customers is particularly noteworthy given that Q1 is seasonably softer across all our business segments.
In India, our EBITDA margin improved sequentially to 8.03%. While margins could have been higher, they reflect the initial yet promising ramp up phase of our Mahad facility, an impact we expect will continue for a few quarters ahead. Delivering this performance in a traditionally slow quarter for camphor and select aroma chemicals reinforces the strength of our diversified portfolio and our unwavering customer focus. Stable raw material prices provide cost visibility while disciplined sourcing allows us to manage forex driven pressures effectively. With festive demand ahead, robust capacity and the right products mix, we are optimistic and expecting a stronger quarter.
2 the Indian market operates with a distinct seasonality with Q2 and Q3 benefiting from the festive and winter months that drive higher consumer spending and product usage. This period is particularly favorable for our camphor fragrances and aroma chemicals businesses as demand accelerates across region. Household personal care and Home Care segment In camphor and terpenes, we have secured adequate feedstock well ahead of the festive production cycle to ensure uninterrupted supply. By maintaining value based pricing in our premium, religious and household formulated camphor as well as powdered camphor and terpene chemicals, we aim to capture peak seasonal demand delivering sequential volume growth in the fragrance division.
Our teams are locking in briefs from national and regional brands ahead of key festive season market windows. We are delivering winning fragrances optimized for the theme of premiumization and performance. By combining strong creative execution with exceptional service reliability, we will safeguard our large accounts and deepen client trust during this high demand period. International demand from our global customers for fragrances also remains strong. Stronger demand in the fragrance division naturally translates into increased demand for our specialty aroma ingredients division. Here we continue our efforts to position ourselves as a global sustainable supplier to the international fragrance and flavour industry.
Incremental output from our hydrogenation facility and growth acceptance of Evermoss by the global customer community are encouraging signs that we are on the right path. At the same time, we must acknowledge potential headwinds. Recent developments regarding a 50% tariff on certain categories of Indian exports could create near term uncertainty in select overseas fragrance and aroma chemical shipments. While our strong domestic presence and diversified product mix provides a natural cushion, we are closely monitoring these measures. We have already begun evaluating alternate market channels, making supply chain adjustments and engaging in customer side negotiations to mitigate any potential impact.
Our brief remains firm. Challenges are inevitable in global business but it is how we anticipate, adapt and act that defines our trajectory. Oriental Aromatics has navigated demand cycles, currency fluctuations and input cost spikes. And each time we have emerged stronger. Now let me request our CFO Mr. Girish Khandelwal to give the financial highlights. Thank you. And over to you, Girish.
Girish Khandelwal — Chief Financial Officer
Thank you very much, Shamal. Good afternoon everyone. Let me begin my sharing by sharing our consolidated performance for the Q1FY26. The operating revenue stood at rupees 226 crore reflecting a 4.5% year on year growth and a 10.9% decrease quarter on quarter. EBITDA was reported at Rs. 18 crore compared to rupees 19 crore in the previous quarter and 22 rupees in the corresponding quarter. EBITDA margins stood at 8.03% as compared to 7.62% in the previous quarter and 10.29% in the corresponding quarter. Net profit after tax stood at 0.5 crore as it is impacted by higher depreciation and finance cost from recent capacity expansions.
Cash profit stood at Rupees eight crore as compared to Rupees nine crore in the previous quarter. With this we can now open the floor for questions and answer sessions. Thank you.
Questions and Answers:
operator
Thank you sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touch tone telephone. If you wish to remove yourself from the question queue, you may press STAR and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Mr. Moksh Ranka from Aurum Capital. Please go ahead.
Unidentified Participant
Hello. I just wanted to know the camphor pricing and what has been the trend last quarter and this quarter.
Parag Satoskar
So we are seeing a gradual hardening of camphor pricing across the past past few months. The raw material prices stay at the elevated level. However, we also will probably have to factor in the impact of forex. Hence to answer your question, we’ve seen firming of pricing over the last few months. Okay.
Unidentified Participant
And what are the current KG prices in the market? And we sell some premium camps as you said. So do we have a. Do we sell at a much higher price than market?
Parag Satoskar
It will be difficult for you to give me a per kg price because that will depend on various Factors. However, we can say that we, we have a relatively good amount of cost leadership when it comes to powder camper as well as our formulated camp.
Unidentified Participant
Okay. Is it possible to give some broad. Range at what campus for normal camper or even just normal, if that’s possible. Just a broader.
Parag Satoskar
I mean it could be, I mean just to give you a perspective, it could be between 450 to 550 rupees, which is a very broad range, if that helps.
Unidentified Participant
Okay. And I think this is the price which has been stable also. Are you seeing like stable price for the last one and a half years? There’s not much volatility. I think.
Parag Satoskar
That’S what I’m saying. I mean pricing is something which is very, which is very customer centric, which is driven by volumes, which is driven by multiple factors. So you know, it’s something which, which would, which is. This is not an ideal platform to really discuss about micro pricing of cancer.
Unidentified Participant
Okay, okay. Okay. That’s the only question I get back.
Parag Satoskar
Thank you.
operator
Thank you. The next question is from the line of Mr. Somil Shah from Paris Investments. Please go ahead.
Unidentified Participant
Hi, good afternoon and thanks for the opportunity. Sir, I would like to know what is our current capacity utilization?
Parag Satoskar
So across except Mahad where we are seeing volumes kind of grow in terms of monthly production and monthly sales, we can very safely say that all the rest of the plants across all our sites are running at optimal capacity of anywhere between 75 to 80% of their total peak capacity. And the Ambarnath fragrance compounding facility runs on one shift. So there we have the ability to expand capacity by one more shift.
Unidentified Participant
Okay. Because I’m think I’m new to this company. So I think we had a big capex in FY24.
Parag Satoskar
So we had a big capex which was spread over the past one and a half to two years because we had a brownfield project where one of the chemistries, which is the hydrogenation chemistry, we built a brand, we built a facility in our Baroda facility, Baroda site. And we also did a greenfield expansion in Mar where we acquired a new site which we first developed. And then we have done phase one of a single product plant. Okay.
Unidentified Participant
So even, I mean the new capacity which we did, even that is running at 75, 80% utilization.
Parag Satoskar
No, that is the only facility which currently is kind of post commissioning. We are ramping up our production and you know, we have a window of say five to six months where we go through the process of sampling, getting approvals and then starting commercial shipments. So that facility is currently running at between 20 to 30%.
Unidentified Participant
Okay. And that we do expect by end of the year it would be running at a similar capacity.
Parag Satoskar
That’s our objective.
Unidentified Participant
Okay. Okay. And so out of our 45% international business, how much is it to the US?
Parag Satoskar
So I wouldn’t get into numbers, but it’s something which is not very substantial to really have a large impact on an immediate basis.
Unidentified Participant
Okay. So we are, we are not seeing much impact due to the tariff on the US Business.
Parag Satoskar
We, we probably are in a wait and watch approach where I think in the perfumery side of the business, especially for aroma chemicals, to really have a new vendor in takes time. So, you know, we are kind of watching how the geopolitical situation emerges. And based on that, we will take a decision. Having said that, even in a very broad sense, even if you have to kind of move out from that supply chain entirely, you know, we have the possibilities of earmarking those materials in other markets.
Unidentified Participant
Okay. Okay. And sir, can you share any revenue and EBITDA guidance for the current financial year and for FY27?
Parag Satoskar
So we normally girish, correct me if I’m wrong. What? Our EBITDA guidance is between 8 to 10%. Am I correct?
Shyamal Bodani
Yes.
Girish Khandelwal
Yes.
Parag Satoskar
Yeah. So we stick to that guidance. We would like to, we would like to kind of cross that guidance deliver and then come back to the investor community. Currently the EBITDA also gets kind of restricted a bit because of the impact of the Mahad post commissioning activity that’s going on.
Unidentified Participant
Okay. And in terms of revenue.
Parag Satoskar
In terms of revenue, we. If I’m, if, if I’m not offed, completely off target, we’ve done an investment of around 200 crores. 200 odd crores. And so we always say, say in a very conservative basis that the incremental sales would be 1.7x in a period of two to three.
Unidentified Participant
Okay. Okay, that’s it from my side. Thank you and all the best.
Parag Satoskar
Thank you. Thanks Swami.
operator
Thank you. Participants, if you wish to ask a question, you may press star and one on your Touchton telephone. The next question is from the line of Mr. Saket from Sagiri Capital. Please go ahead. Sir.
Unidentified Participant
Hi. Am I audible?
operator
Yes, please go ahead.
Parag Satoskar
Yes.
Unidentified Participant
Yeah, yeah. So my first question would be, you know, if you can help me within the standalone number, I think there is also this trading business. So if you exclude that trading business, what remains is our core pre Mahad business. So what is the EBITDA margin of that core business excluding the trading P and L?
Girish Khandelwal
Hello?
Unidentified Participant
Yeah.
Girish Khandelwal
Yeah, you see trading business also we are getting that same type of margins, 8 to 10%.
Unidentified Participant
I’m sorry. So my question is excluding trading, our core business right now is at 8 to 10% margin. Is the EBITDA. Is it? Is it correct?
Shyamal Bodani
Right.
Unidentified Participant
Yeah.
Girish Khandelwal
So percentage, it remains in the same range, 1% plus or minus.
Unidentified Participant
Okay, okay, fair point. So, so then see the question to Dharmal Bhai is you know our broader normalized margin used to be in the 14 to 17% range right now. And if I look at some of our peers, you know even most of them have crossed those, you know, these normalized margins that they used to report. And again it could vary from company to company but broadly they are in the upper rand or upper band or they have crossed them. On top of that in the last two to three years we have taken multiple initiatives like backward integration, forward integration, even say these brownfield capacities which are typically margin accretive in nature now.
But despite all these initiatives and fairly I think stable business environment in the last couple of quarters. If I look at your say annual report as well as commentary, but our margin is way below the normalized range. So my question is what the reason for that? Is it like we lost any major account which was profitable, Maybe that account went under the bus post Covid or any profitable product. So in that case what is the now new normal? Is it like it will remain at 8 to 10% or is it maybe at best you can do 10 to 11% for the normal, the core business.
I’m not talking about the Mahada and the trading. That will be my subsequent question. But that’s one question that I had for Dharamil Bhai.
Dharmil Bodani
So I won’t comment on the Parag. I’ll take the first part and then you can take the second part. I won’t comment on the other companies. As far as Oriental Aromatics is concerned, our core business will stay in the revised guidance margins which we’ve given which are not off the top of my head. But you can look at the transcripts and unless Parag, you have those numbers for the margin and Parag you can take the other half of it.
Parag Satoskar
So primarily just to answer your question, I think like Dharmal rightly said, you know, we are unable to understand and we are not ready to comment on, on our peers as to first of all how they are able to achieve the sustainable EBITDA margins because those, those margins actually are not even sustainable by the end industry, which is the fragrance and flavor industry. Having said that, I think if you look at pure CAMHR manufacturers, I think the name that you mentioned, probably their profitability has come only in the current quarter. So we need to kind of look at what is the exact reason otherwise pure standalone camphor manufacturers are also having this massive problem of extremely high level of capacity in the market and very low demand.
So I mean for US companies which have brand new plants where we have fully depreciated plants and are able to deliver margins which are much higher than your end industry margins, it’s something which we don’t understand and we don’t want to comment upon. What we can tell you is that our customer base remains loyal with us. All the product categories that we operate out of continue to show growth. I mean, the last few quarters there were a lot instability in terms of global instability in terms of delays, in terms of overstocking. So all these factors, like we’ve just started saying since the last two investor calls that we are seeing normalization and naturalization of demand coming into the picture and hopefully as days go by, we should be in a position to improve our performance.
Unidentified Participant
Okay. Okay. Now and within the campus.
operator
Sorry to interrupt, sir. Sorry to interrupt. Could you rejoin the queue again please? Sir, we do have other participants in the queue.
Unidentified Participant
Okay, okay, thank you.
operator
Thank you so much, sir. Participants, please restrict your questions to two per participant. We’ll move on to the next question. That’s from the line of Mr. Yash Nayak from Kamakhya Wealth Management Private Limited. Please go ahead, sir.
Unidentified Participant
Thank you for the opportunity. So first question is the FMCG stream seem to be the steady growth for our business. So could you outline your strategy to deepen the penetration in the FMCG space both with large established layer and emerging regional brand.
Parag Satoskar
So to answer this question, I’ll have to divide it into two compartments. I mean when you look at our engagement with the FMCG business, I mean on the free, we have a very active line of communication going on with all the national and the regional brands who are active in the FMCG space in India and also our customers in Asia. And we continue to grow in our existing business with them. And we continue to acquire more and more brands which are fragranced by us. And that is something which is achieved because of our combination of our creativity done by the creativity Creative team and our backward integration.
So that’s on the, on the part of our FMCG strategy. When it comes to the fragrance division, when it comes to the camphor division, we are again engaging with various FMCG players who are Active in the camphor selling space. And we are exploring opportunities where we can co work with them on our camphor powder as well as formulated camphors.
Unidentified Participant
And sir, what is your current internal utilization of camphor?
Parag Satoskar
We. We are at Girish. Correct me if I’m wrong but we are at around between 60 to 65% internally consumed.
Girish Khandelwal
Right. Right.
Unidentified Participant
Thank you. Thank you. That’s it. From.
operator
Thank you. The next question is from the line of Mr. Arun Arora from NB Investments. Please go ahead. Sir.
Unidentified Participant
Good afternoon. Is it audible?
operator
Yes sir. Please.
Unidentified Participant
Yes sir. Since I’m new to the company, I’m just asking one basic question. Like if you see our past revenue, let’s say take revenue of FY21. The revenue was 709 crores and PAT was 102 crores. Now fast forward to FY24. It was 836 crores and 9 crores was the profit. My first question was we know that you know, there was a sudden reduction in the price of camphor and then more players came out with additional capacity. So during this period the camphor we had a tough time. Now other than camphor, we also deal with aromatic ingredients as well as fragrance and flavor.
So does these two divisions also had a tough time during this period? Then second question in the same one is now FY25. The revenues have gone to 924 crores. But the PAT is 34 crores. So there is a sudden jump in the profit. So just wanted to know now also you said camper vertical is still undergoing lot of challeng. So which other two verticals is it that both the verticals have improved their revenue and the profitability or is it only one of them? If you could share some details about that.
Parag Satoskar
So Arun, to answer your question, if you actually look at what happened say in 2021 and then kind of look at 2024, you know, probably, you know we can compare it to what we internally call as a perfect storm. Because you know, we had a R D pipeline and we had an investment program for our specialty ingredients division which was kicked off in 2019 and continued till around 2023. We continue to invest, we continued to make new products and all these new products were at. At various levels of approvals with our customers. So you know, we had ended up doing the investment cycle and we had still not got economies of scale when it came to sales of these products.
And on the top of that we had this situation of camphor which suddenly came within a period of one year and. And These two situations combined together led to a situation where we had substantial reduction in profit margin over the past one and a half to two years. We have kind of done a lot of things on the camphor side to create and to enforce our competitive moat so that we become strong there. All the products that were kind of launched on the specialty aroma ingredient side between 2019 to 2022 are now being accepted by the customers.
And hence we are see capacity utilization of those plants coming at optimum levels. And because these materials are also used internally by our fragrance division to add value to the fragrance, the fragrance division also has kind of benefited from the whole piece. And so a combination of these three positive factors is what you are seeing in terms of the improvement of the path. And, and the reduction was primarily because of two or three completely negative factors coming together at the same time. Okay, I hope I answered your question.
Unidentified Participant
Small clarification. The recovery in FY25 pad, was it due to recovery in only two segments, two verticals or is it only because of, you know, all ingredients which you had, you know, started the production? New products that have reached a, you know, stable level and they have started contributing more? Is that I wanted to know.
Parag Satoskar
So like I said Arun, it’s a bit of all the three divisions turning positive in terms of their contribution to the overall business. You know, the camphor by us taking some internal steps in terms of formulation, in terms of pharma camphor contributing more than what it was doing in the fragrance division because of the backward integration, we have started winning more business and the profitability is better there. And the third part is now that all our aroma ingredient launches, except evermore have crossed that critical path of 500 days to 600 days which is what is needed for us to go through the cycle of product approval, product stabilization and eventual commercial orders.
All three divisions have now started contributing to an extent and hence we are seeing the improvement.
Unidentified Participant
That is very helpful, sir. So regarding the debt, see when we had started this CAPEX cycle, I think sometime during 22 or some, you know, 23, the CFO had predicted the peak debt of around 360 crores. But we have done 170 crores. If you see a year back when we completed most of the Capex. So one of the reason was that we had post to postpone few Capex, particularly the multi purpose plant at Mahad. Is there other than that? Is there any other Capex were postponed or did we do cost control and could able to complete whatever the CAPEX plan other than the multi Purpose plant at a lesser debt.
Parag Satoskar
So primarily your second observation is correct. I mean when we realized the challenges in terms of output pricing we went into a massive optimization mode at our Baroda facility and hence we could actually shave off certain capex which was scheduled to be done. But we found optimized ways of doing it in our current facility and current site in a very safe and a sustainable. So that’s why we. We kind of have not really invested in that capex and optimized.
Unidentified Participant
So that means only the multi purpose plant plan that Mahad was only postponed. Correct.
Parag Satoskar
So Mahad, there were multiple ideas. One of them has been implemented, the other is not postponed. It is still being evaluated but we also did a lot of optimization in our Baroda investments.
Unidentified Participant
Okay, fair enough. Sir. Sir, my last question is about your.
Parag Satoskar
Already I’ve had four questions sir, what I would recommend.
operator
Thank you so much. The next question is from the line of Mr. Yathart from Ige India. Please go ahead sir.
Unidentified Participant
Hello.
Shyamal Bodani
Hi.
Unidentified Participant
Thank you so much for the opportunity. Just wanted to ask a few questions regarding the mar plant like. As of. Now because quarter three union quarter three FY25 you mentioned it had a point five. Mr. Yathart, there is a disturbance at your end like a static disturbance. Could you please come again with your question? Hi, is it much better?
operator
No sir, I can still hear the static disturbance during.
Unidentified Participant
Any better? I just changed my network. Is it better?
operator
Yeah, please go ahead
Unidentified Participant
Again just wanted. To ask regarding the Mahar plan, the revenue contribution in quarter three SR25 it was said that was around negative 3.5 crore or 3.5 crore loss. What is the current update regarding that? How much revenue is it contributing?
Parag Satoskar
Girish, do you have answer to this? I mean A or we could probably get back to you but you said.
Girish Khandelwal
Q3:25 around 38 lakes in the current quarter to come in the next 38 lakhs. In the current quarter
Unidentified Participant
38 lakhs. Okay. And another thing you mentioned in today’s conference about the revenue growth about being 1.7 times in 2 to 3 years and EBITDA margin of around 8 to 10%. Just wanted to ask the reason behind. The 1.7 times what are you seeing in the future for the next two, three years how do you get the 1.7?
Parag Satoskar
So that’s the normal Girish, am I correct? That’s the normal asset turnover that we expect whenever we do an investment.
Girish Khandelwal
Yes, yes. For Mahara it is one point because of the Greenfield Capex.
Parag Satoskar
Yeah, and I think as and I Think as they’ve explained to you, I think the Mahat plant is in process. We’ve had scaling up going on sample approvals. So I think we’ll just have to be patient for a quarter or a quarter more after this. And I think the Mahat numbers will start showing in the positive.
Unidentified Participant
Okay, thank you so much.
operator
Thank you. Participants, if you wish to ask a question, you may press star and one on your touch tone telephone. The next question is from the line of Mr. Saket from Sagari Capital. Please go ahead.
Unidentified Participant
Hi. Thanks for the follow up. So I looked at the trading that stocking trade part, right. So so far we have spent around 25 crores on stocking trade. But in the annual report there was a inventory of 16 crores. So can you help me? What is the revenue for the last three quarters when this trading business has started? What has been the cumulative revenue for the last 3/4 and what has been the evenly for Q1 from trading business?
Girish Khandelwal
Regarding the trading revenue, I’ll give you separately.
Unidentified Participant
Okay, sure, sure. Now coming to this Mahad 1. So again Mahad 1 currently is at a again operational level. It is still making losses like 5 crore and all. So what’s the ramp up that we are expecting? And like it was 38 lakhs in Q1 and then 30 or lakh in Q4. So what the ramp up say looking at say Q2 onwards like is it EBITDA positive? And that means by said in couple of quarters maybe it can be positive. So are we talking about Pat positive or EBITDA positive for Mahab in couple of quarters.
And I think There was some 200 days also stabilization part. Right. Something that you had mentioned in the earlier calls.
Parag Satoskar
Yeah. So Saket generally I think every product is like a new baby. I mean and I would say that we are pretty encouraged by what is the feedback that we are getting from the samples and the commercial shipments that are being sent to customers and that are also being used internally by our fragrance division. So you know, whether it’s 200 days or whether it’s 250 days is something which is of academic interest. I think what we all must be, must be kind of aware of is that the product is now being made in a sustainable way.
The plant is running at not full capacity but at a good capacity. And we are in the process of ramping it up. And hopefully in the coming quarters as we have more information to share about its contribution, about its performance, you know, in our continuous engagement with the investor community, we’ll keep giving you updates on the same.
Unidentified Participant
Oh sure, thanks. Now coming to the branding that Saraswati and Pine 3, you know something that you had talked about in the annual report in last quarter as well. So right now in India is that is there any B2B business within camper or entire? We have shifted to I think our branded because some 60% was being talked about in annual report. That data that is now being devoted towards say Saraswati and Pine Tree. So it’s like 40% export and 60% all is now B2C. And what’s the stage on that? You know that should enhance our productivity.
Parag Satoskar
Right.
Unidentified Participant
Because even the company that we Talked about, their B2C business is what has turned around. And as you rightly said that another core B2B business still is struggling. So any thoughts on or guidance on that front?
Parag Satoskar
So Saket, it’s a combination of B2C plus B2B plus exports plus pharma which kind of contributes to our camphor and terpene chemical business. I wouldn’t be really be able to give you a complete break up of how much is each contributing like Girish has mentioned and in our annual reports that 60% of that remains in the formulated space. The remaining can be divided into these two three verticals.
Unidentified Participant
Oh and how has been the ramp up so far? You know, because I’m seeing very few listings right now on Amazon. Is it like we are working, you know, focusing more on the brick and mortar one or two online is still slightly less presence.
Parag Satoskar
So we are looking at all, we are looking at all options. We are looking at GT primarily because that’s something which we have been active historically. We are also looking at modern trade. We are also looking at private labels. Everything okay.
Unidentified Participant
And just for that 8 to 10%.
operator
Any follow up questions please? We do have other participants. Thank you so much. Sir. The next question is from the line of Mr. Arun Arora from NB Investments. Please go ahead.
Unidentified Participant
Sir. My question was regarding the Amarnath facility. Now if you see the capacity utilization must be going up and hence the cost of running should be fully leveraged out. So plus with many of the ingredients we are making in house, so we must be making better margins in fragrance and flavor compared to earlier years. So my question was is it, you know, if you see last a year or two, we have been getting good contracts in this segment or in this vertical. So question was are we getting this business by foregoing some of these increased margins or is it for any other reason?
Parag Satoskar
So I think if you look at the economics of The Ambarnath plant, I mean compounding has input output ratio of 1 is to 1 unlike the chemical business. Hence there’s not an extremely high level of contribution in terms of overhead costs. Having said that, all the business that we acquire is based on our expectation of profitability and is not and is not acquired by either reducing the margin or giving an extended credit etc to the customer.
Unidentified Participant
Okay.
Parag Satoskar
The ability to be a low cost sustainable manufacturer with the advantage of backward integration which is unavailable with most of the other fragrance companies that are in the market.
Unidentified Participant
Okay, that’s helpful sir. My next question is about camphor where we have taken over the our earlier distributors sales where we are making it directly to the consumers. My question was a year or two back when our competitors came out with the new capacity, there was a situation where the camphor price at which we were giving it to the dealer distributors had to be reduced while the dealers distributors did not reduce the price and they were selling at the higher price, making good margin in the process. Now my question to you is during that time Oriental did not take advantage of that.
So now that we are selling 60% of our production directly to the consumers, in future if such situation comes up, we would be getting that benefit.
Parag Satoskar
So like we mentioned in the like Shamil mentioned in the opening remarks that this business for us is something which is value added a whatever opportunities we get in terms of realization in terms of creating a credible business case so that we stay a very strong brand will be undertaken to ensure that the brand stays strong and the profitability improves. Having said that broadly we can say that between powdered camphor and formulated camphor you will have a little better margin in the formula.
Unidentified Participant
Okay. Am I allowed one more question or no?
Parag Satoskar
We have a strict moderator.
Unidentified Participant
Just wanted to know his management is inclined for any tie up with any, you know, the FNO big MNCs for something like CDMO or CMO type of business.
Parag Satoskar
So I think being active in all the areas of the FNF business which is compounding, which is ingredients. You know, any opportunity that comes to us as an opportunity of co working gets into a make or a buy situation. And to be very honest, whenever we have evaluated a make or a buy for us, it has always been that let’s make it. It might take a little while longer but it will be more sustainable. So for us any kind of such activities, if and when they are presented will be evaluated. But as of now we have no intention of getting into such a relationship.
Dharmil Bodani
And we’re a company that believes a lot in Freedom to operate, especially because we are in the generic space. So it’s going to stay that way.
Unidentified Participant
Point. Lastly, if all the three verticals put together with all the Capexes that we have.
operator
Sorry to interrupt. Could you come again into the queue please? Thank you so much. The next question is from the line of Mr. Dhawan Shah from Alpha Curate Advisors. Please go ahead.
Unidentified Participant
Yeah, thanks for the opportunity, sir. So my question is on the Mahat side, I think I missed your part. You mentioned some revenues from R during the quarter. So can you share the numbers? What was the revenue contribution from Mard last quarter and the Q4 and how much is the EBITDA loss?
Parag Satoskar
So we can. Dhavan, if you can reach out to Valoram and send your question, we could probably share it with you. Normally we look at all the revenue contribution commentary and EBITDA commentary based on the total group or based on the divisions. We do not go micro about offering site wise information.
But if there is something that we can offer, you can share it with Valorum and we will revert back to you.
Unidentified Participant
Understood. But on the margin wise, you know, if we want to reach to around 1314 EBITDA margin from the marred plant. So I mean is that achievable at the 34? I mean can it be break even 3040 capacity utilization or can you share some cost dynamics over there? If it is possible.
Parag Satoskar
So our intention is never to run the plant at 30 to 40%. Our intention is as we go and kind of reach this initial time frame of 500 to 600 days again more acceptance globally.
We are completely aware of the competitive landscape that is there in this product. It’s a matter of time when we will be in a position to get stabilized returns and stabilize profit margins. Whether it will be 14% or 12% or 10% will be decided by the market forces because this is a generic material. But we are very confident of achieving first the numbers of optimum utilization of the plant and then by a combination of internal process reengineering and being offering a globally sustained stable product to achieve our eventual margin goods.
Unidentified Participant
And in terms of product approvals, have we received majority of the approvals or how is it so from our side
Parag Satoskar
I have the.
I have the most severest of my customer which is my internal fragrance division. I mean if. If they approve a product then we are very confident that as we reach out to our global customers, we should not have a problem. Having said that, point number two is every single significant consumer of aroma ingredients in the world today. And I can very Proudly say that is buying if not multiples of ten, but at least one product from us. So I think we are known as a sustainable supplier of aroma ingredients to customers worldwide. So when a new product gets added it’s a good thing for them because it kind of gets added to the basket that Oriental is offering to them and hence they don’t have to look for just one supplier for one material.
And it’s a win win situation for us because it kind of gives us the ability to do basket pricing.
Unidentified Participant
Understood sir.
Parag Satoskar
All these points together we are looking at a very high level of confidence that we will be able to achieve our number.
Unidentified Participant
Understood. I think you mentioned that Mahad Capex we did roughly 200 crore and asset is roughly 1.7x. So I think peak revenues could be 350 odd crore from that facility. So out of that 50% is easily achievable by the end of the next year. I mean 121, 80 crore.
Parag Satoskar
You know, you, you will, I will probably.
Girish, correct me if I’m wrong because the Mahad Capex has two elements to it. 1ele was the plot development cost which has been done where the, the recovery of that cost will be achieved. When we do phase one, phase two, phase three, the, the investment that has been done in the Evermos plant there we are looking at a, at a asset turnaround of Girish corrected in the previous with the previous speaker for Mahad he’s looking at 1.25 so it will be a little longer gestation period. Having said that, I think we have shown time and again, I mean we have launched more than 40 products in the last five years and all of them today are globally accepted and all of them in our plants are running at 70 to 80% capacity.
So we are pretty confident that without getting into numbers, without getting into exact timelines because that’s something which is very difficult to predict. You know once you lose a window of 6 months RFQ then you have to, then you can reach out to that customer only after six months. All these things taken into consideration, we are pretty positive.
Unidentified Participant
Sure sir. That’s all from my side sir. Thank you so much.
Parag Satoskar
Thank you.
operator
Thank you. The next question is from the line of Mr. Arun Arora from NB Investments. Please go ahead.
Unidentified Participant
Thanks for the opportunity again sir, I just wanted to know you have been giving the asset turnover for the new Capex that are coming up. Just want to know if I have to put all the info facilities that we have in the three verticals together based on the Current prices, how much turnover we can expect.
Parag Satoskar
Arumba, it’s a very complicated question. I mean, I also would like to take the opportunity to invite you to come and have a cup of coffee with me and Girish. You have asked too many questions. So you know, we can have a one on one meeting and we can have a discussion. Why don’t you just drop an email to Valorum and we will probably look into the question and revert back to you, sir.
Unidentified Participant
Sure, sir. Okay. Lastly, any capex plan for this year.
Parag Satoskar
So we are going to go slow. We are going to probably take a pause. We are going to evaluate what’s happening with all the capex that we have done and take it to its logical conclusion. Having said that, nothing is on the table and nothing is off the table. If there are any opportunities that come by based on the ideas identified by our own creative team or any interactions that we might have with our customers globally, we are completely open to the idea and the balance sheet and the P and L has the leverage to kind of.
And we also have the land and the EC to go ahead and do the investment. As of now we are going to, we are going to pause and we are going to probably review and ensure that what we have started working upon, we take it to the conclusion.
Unidentified Participant
Thank you very much and all the best.
Parag Satoskar
Thank you Arun.
operator
Thank you. Ladies and gentlemen. That was the last question for the session. I now hand the conference over to the management from Oriental Aromatics Ltd. For the closing comments. Please go ahead, sir.
Dharmil Bodani
Thank you all for participating in this earnings conference call. I hope we have been able to answer your questions satisfactorily. If you have any further questions or would like to know more about the company, please do reach out to our IR managers at Valorem Advisors. Thank you.
operator
Thank you. On behalf of Oriental Aromatics Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.
Parag Satoskar
Thank you. Bye.