AWL Agri Business Limited has released its preliminary quarterly business update for Q3FY26, revealing mixed performance across different business segments. The company recorded low single-digit volume growth during the quarter ended December 31, with growth primarily driven by uptick in both Edible Oil and Food & FMCG segments, though overall volumes were impacted by declining Industry Essentials performance. The company noted that festive demand remained muted during the quarter as trade operated with lean inventory levels.

Q3FY26 Financial Highlights

The company demonstrated resilient value growth despite volume challenges during the quarter:

Segment-Wise Performance Analysis

The company's performance varied significantly across business segments during Q3FY26:

The Edible Oil segment demonstrated resilience with close to 3.00% YoY growth, led by strong performance in mustard oil and improved traction in palm oil. However, sunflower oil sales remained flat amid elevated inflationary pressures. The segment benefited from relatively lower price volatility during the quarter, with palm oil prices correcting to levels similar to soybean oil.

Food & FMCG Segment Recovery

The Food & FMCG business showed gradual recovery with 3.00% YoY growth (excluding G2G sales), supported by improved offtake and multiple interventions in the rice business:

Food & FMCG products other than rice and wheat, contributing over one-third of the segment, recorded strong growth exceeding 30.00% YoY. Wheat flour consumer packs remained flat amid subdued demand, though the company implemented multiple interventions including pricing adjustments and consumer promotions to improve profitability.

Digital Channels Drive Growth

Alternate channels continued their strong momentum, with impressive performance metrics:

The strong performance in e-commerce and quick commerce platforms reflects changing consumer preferences and the company's successful digital strategy adaptation.

Distribution and Marketing Initiatives

The company's distribution footprint expanded to close to 9.50 lakh outlets, representing 18.00% YoY growth. Having scaled distribution significantly over the past 3-4 years, particularly in rural markets, the focus has shifted toward consolidation and efficiency improvements.

During the quarter, AWL Agri Business stepped up marketing intensity with five new television campaigns, including a refreshed pan-India campaign featuring Akshay Kumar and region-specific campaigns for East and South India. The company also launched "Pakko Gujarati" campaign for Fortune Cottonlite Refined Cottonseed Oil featuring prominent regional actors.

Industry Essentials Face Headwinds

The Industry Essentials segment faced significant headwinds with 7.00% YoY volume decline, primarily due to weak sales of castor and de-oiled cake products. This decline partially offset the positive performance in other segments and contributed to the overall modest growth trajectory.

GD Foods, focusing on sauces and condiments, delivered strong 18.00% YoY growth driven by improved execution and leveraging AWL Agri Business's distribution infrastructure. The company continued bundling 'Tops' products with 'Fortune' products to drive trials and achieve cost efficiencies.

AWL Agri Business Limited has received a penalty order of ₹1,76,763 from Maharashtra tax authorities for alleged GST violations. The company disclosed this regulatory action in a filing to the stock exchanges on December 31, 2025, pursuant to SEBI listing regulations.

Penalty Details and Authority

The penalty was imposed by the Office of the Deputy Commissioner of State Tax, Nagpur, Maharashtra, under Section 73 of both the Central Goods and Service Tax Act 2017 and Maharashtra Goods & Service Tax Act 2017. The company received the order dated December 30, 2025, on the same day it was issued.

Nature of Violation

The penalty relates to a demand order issued under Section 73 regarding input tax credit reversal under sections 42 and 43 of the CGST and MGST Acts, 2017. The tax authorities identified contraventions related to the company's input tax credit claims and processing.

Company's Response and Impact Assessment

AWL Agri Business Limited has announced its intention to challenge the penalty order through appropriate legal channels. The company stated it is taking appropriate steps to appeal against the penalty before the relevant authority.

Regarding the financial impact, the company has assessed that it does not foresee any material impact on its financial, operational, or other activities due to this penalty. The relatively modest penalty amount of ₹1.77 lakh appears manageable for the large-cap FMCG company.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, and SEBI Circular No. SEBI/HO/CFO/CFD-PoD1/P/CIR/2023/123 dated July 13, 2023. The company secretary Darshil Lakhia signed the regulatory filing, ensuring proper corporate governance protocols were followed in disclosing this material information to investors and stakeholders.