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.

AWL Agri Business , a prominent player in the agricultural sector, has released its financial results for the first quarter, revealing a mixed performance with increased revenue but decreased profitability.

Revenue Growth Amidst Challenges

The company reported a significant increase in net sales, which rose by 20.50% to ₹17,058.00 crore in Q1. This substantial rise in revenue demonstrates AWL Agri Business's ability to expand its market presence and sales volume, primarily driven by higher edible oil prices.

Profitability Under Pressure

Despite the impressive revenue growth, AWL Agri Business faced headwinds in maintaining its profit margins. The company's net profit declined by 24.00% to ₹236.00 crore, primarily due to increased expenses. This reduction in profitability highlights the challenges the company faced in managing costs and maintaining operational efficiency during the quarter.

EBITDA and Margin Contraction

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a significant decrease, falling by 41.50% to ₹366.00 crore. This drop in EBITDA was accompanied by a contraction in the EBITDA margin, which fell to 2.15%.

Key Challenges and Growth Areas

AWL Agri Business faced several challenges during the quarter, including:

1. Muted consumer demand
2. Strategic consolidation of rice operations

However, the company also saw positive developments:

• Quick commerce sales grew by 75.00%

Conclusion

While AWL Agri Business has successfully grown its top line, the challenge ahead lies in translating this revenue growth into improved bottom-line performance. Management may need to focus on addressing the challenges of muted consumer demand and optimizing their rice operations while capitalizing on growth areas such as quick commerce. The company's future performance will depend on its ability to balance growth with profitability as it navigates the dynamic agricultural business landscape.