Orica Limited

This report is an updated version of the report published on 6 March 2026 at 11:39 AM AEDT.  

Section 1: Company Overview, Low Carbon Emission Initiatives and Fundamentals

Section 1.1: Company Overview: Orica Limited (ASX: ORI) is an Australia-based mining and infrastructure solutions provider. The Company is engaged in the production and supply of explosives, blasting systems, mining chemicals and geotechnical monitoring to its cutting-edge digital solutions. Kalkine’s Low Carbon Research Report covers the Investment Highlights, Low Carbon Emission Initiatives, Key Financial Metrics, Risks, and Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

Section 1.2: Why Low Carbon Emission Matters?

The shift toward a low-carbon economy is one of the most significant challenges of current time, spurred by the urgent need to combat climate change and reduce the environmental impact of corporate activities. This report covers ASX-listed low-carbon emission company (ASX: ORI), that is committed to sustainability and responsible environmental practices.

Carbon and Waste Management - Key Metrics

Orica has shown the declining trends in CO₂ emissions intensity and energy use per revenue can be explained by several operational and strategic factors. One of the primary drivers of the reduction in CO₂ emissions intensity is Orica’s decarbonisation strategy. The company has implemented industrial abatement technologies and emissions reduction initiatives across its chemical manufacturing operations, which lowered operational emissions. As a result, Orica has already achieved over 50% reduction in Scope 1 and Scope 2 emissions compared with its 2019 baseline. In addition, Orica has improved energy efficiency across its manufacturing network, optimised supply chains, and invested in more efficient plant operations, lowering energy consumption relative to output. The shift toward higher-value and technology-driven segments such as Digital Solutions and Specialty Mining Chemicals, which generate greater revenue with comparatively lower energy intensity, has also contributed to the decline in emissions and energy intensity over time.

Peer Comparison: Carbon Emission and Waste Management Metrics

Orica’s position in the peer comparison reflects its moderate emission reduction target and relatively stronger waste management performance compared with other Australian materials companies. The company has set a 30% emissions reduction target by FY2026, which is earlier than several peers targeting 2030–2035, indicating a short-term operational decarbonisation focus. Its total CO₂ emissions of ~1.16 million tonnes are influenced by the energy-intensive nature of its ammonium nitrate and explosives manufacturing, which requires significant chemical processing. However, Orica’s waste recycling ratio of ~32.6%, one of the higher levels among peers, reflects its efforts in process optimisation, resource recovery, and environmental management programs across its manufacturing sites. The company’s sustainability strategy—focused on industrial emissions abatement, operational efficiency improvements, and environmental remediation initiatives—supports gradual emissions reduction while maintaining large-scale chemical production for the mining industry.

1.3 The Key Positives, Negatives, Investment Highlights, and Risks

1.4 Top 10 Shareholders:

The top 10 shareholders together form ~30.15% of the total shareholding. AustralianSuper and The Vanguard Group, Inc., hold maximum stakes in the company at ~7.12% and ~6.17%, respectively.

1.5 Key Metrics: ORI's EBITDA Margin increased to 18.7% in FY25 vs 15.3% in FY24. Below are captured other metrics:

Section 2: Business Updates, Financial and Operational Highlights

2.1 Recent Business Updates:

2.2 FY25 Results Highlights

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary

The stock price has declined by ~6.92% in the last one month, whereas over the last six months, it has increased by ~11.36%. The stock has a 52-week low and 52-week high of AUD 14.880 and AUD 26.47, respectively, and is currently trading above the mid-points of its 52-week low and 52-week high. ORI was last covered in a report dated ‘21 May 2025’.

4.2 Fundamental Valuation

Valuation Methodology: P/E Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 6 March 2026. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Dividend Yield may vary as per the stock price movement.

Note 5: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.