AWL Agri Business Limited (formerly known as Adani Wilmar Limited) has reported mixed results for the first quarter, with revenue growth offset by a decline in overall volumes.

Revenue Growth Amid Volume Challenges

The company recorded its highest-ever Q1 revenue at ₹17,059.00 crore, marking a 21% year-on-year increase. However, AWL Agri Business faced a 5% year-on-year decline in overall volumes during the quarter. This volume decrease was primarily attributed to the rice category, which experienced significant headwinds.

Segment Performance

Edible Oils

The edible oils segment saw a 26% year-on-year increase in revenue, reaching ₹13,415.00 crore. However, volumes in this segment declined by 4% compared to the same period last year. Excluding palm oil, branded volume grew in low single digits, supported by strong performance in mustard oil.

Food & FMCG

The Food & FMCG segment reported a revenue of ₹1,414.00 crore, an 8% decline year-on-year. This decrease was largely due to the consolidation of non-basmati rice business and the discontinuation of one-off G2G (Government-to-Government) rice business from the previous year.

Industry Essentials

The Industry Essentials segment showed positive growth, with volume increasing by around 6% year-on-year. This segment's revenue grew by 12% to reach ₹2,230.00 crore in Q1.

Profitability

Despite the volume challenges, AWL Agri Business reported a Profit After Tax (PAT) of ₹238.00 crore for Q1. The company's operating EBITDA stood at ₹519.00 crore for the quarter.

Market Dynamics and Challenges

The company faced several challenges during the quarter, including:

1. Muted consumer demand
2. Strategic consolidation of regional rice operations
3. Discontinuation of one-off G2G rice business from the base year
4. Fluctuations in edible oil prices

Raw material prices in Q1 were approximately 30% higher compared to the base quarter, leading to subdued consumer demand. Market volatility in crude edible oil prices, driven by reduced customs duties, global geopolitical events, and higher biodiesel mandates in the U.S., led to trade destocking during the quarter.

Distribution and Alternate Channels

AWL Agri Business continued to expand its distribution network, with direct retail reach growing 18% year-on-year to 8.7 lakh outlets. Rural town coverage expanded to around 55,000 towns, a tenfold increase from FY'22.

Alternate channels, including Quick Commerce, generated over ₹3,900.00 crore in revenue in the last twelve months ending June. Q-commerce revenue grew by approximately 75% year-on-year in Q1.

Management Commentary

Angshu Mallick, MD & CEO of AWL Agri Business Ltd., commented on the results: "The Company witnessed a temporary volume decline, primarily influenced by the consolidation of its regional rice operations and muted consumer demand. Encouragingly, the core categories delivered healthy volume growth, and revenue rose 21% YoY, driven by higher edible oil realizations."

He added, "With the resiliency of our core business and large opportunity, we expect to continue to benefit from the formalization of the Indian staple food industry."

Outlook

The company expects strong growth momentum in its edible oils business going forward, supported by recent policy changes and normalized palm oil prices. AWL Agri Business anticipates volume growth to continue exceeding industry rates in several categories, including wheat flour and other food products.

As AWL Agri Business navigates through these challenges and capitalizes on growth opportunities, investors and industry observers will be closely watching the company's performance in the coming quarters.

AWL Agri Business Limited (formerly known as Adani Wilmar Limited) has reported robust financial results for the first quarter of fiscal year 2026, showcasing resilience in a challenging market environment. The company also anticipates positive impacts from recent policy changes in the edible oil sector.

Q1 FY26 Financial Highlights

AWL Agri Business has posted its highest-ever Q1 revenue, recording ₹17,059.00 crores, marking a significant 21% year-on-year growth. The company's performance across key financial metrics for the quarter ended June 30, 2025, is as follows:

Segment Performance

The company's performance across its business segments showed mixed results:

1. Edible Oils: Revenue increased by 26% YoY to ₹13,415.00 crores, despite a 4% decline in volumes.
2. Food & FMCG: Revenue decreased by 8% to ₹1,414.00 crores, impacted by the consolidation of non-basmati rice business and lower rice exports.
3. Industry Essentials: Revenue grew by 12% to ₹2,230.00 crores, driven by growth in the de-oiled cake business.

Market Expansion and Distribution

AWL Agri Business continues to expand its market reach:

• Direct retail reach grew 18% YoY to 8.7 lakh outlets
• Rural town coverage expanded to around 55,000 towns
• Alternate channels, including Q-commerce, generated over ₹3,900.00 crores in revenue in the last twelve months

Outlook on Edible Oil Duty Cut

The company expressed optimism regarding recent policy changes in the edible oil sector. Angshu Mallick, MD & CEO of AWL Agri Business Ltd., stated, "The reduction in customs duty on crude edible oils is expected to positively impact domestic refiners by boosting sales and curbing refined oil imports from both SAARC nations and edible oil producing countries."

Future Prospects

AWL Agri Business anticipates several positive developments:

1. Normalization of palm oil prices is expected to support volume growth in coming quarters
2. The company achieved a strong turnaround in its Basmati rice business, with double-digit volume growth
3. Management expects to continue benefiting from the formalization of the Indian staple food industry

Mr. Mallick added, "With the resiliency of our core business and large opportunity, we expect to continue to benefit from the formalization of the Indian staple food industry."

As AWL Agri Business navigates through market challenges and capitalizes on emerging opportunities, the company remains focused on strengthening its position in the agri-business sector and delivering value to its stakeholders.