Agarwal Industrial Corporation Limited (AICL) has clinched a significant contract from Indian Oil Corporation Limited (IOCL), marking a major milestone for the company in the bitumen supply sector. The Mumbai-based firm announced that it has won a tender to supply bulk bitumen to IOCL's Kakinada locations, with the deal valued at approximately ₹330.05 crores.

Contract Details

The contract, which solidifies AICL's position in the bitumen supply chain, is structured as follows:

The firm order comprises approximately 60,500 MT of bitumen to be delivered across 11 parcels, while the optional quantity includes an additional 33,000 MT spread over 6 parcels. This brings the total potential supply to 93,500 MT of bulk bitumen in VG-30 and VG-40 grades.

Strategic Importance

This tender win is particularly noteworthy as it involves supplying to IOCL, one of India's leading public sector undertakings. The contract not only demonstrates AICL's growing presence in the bitumen market but also reinforces its reliability as a supplier to major corporations.

Lalit Agarwal, Whole-time Director of Agarwal Industrial Corporation Limited, expressed enthusiasm about the contract, stating that it "underlines the Company's growing presence and reliability in the bitumen supply chain and further strengthens our long-standing relationship with IOCL."

Execution and Impact

The supplies will be executed in accordance with the terms and conditions specified in the respective tenders. This substantial order is expected to have a positive impact on AICL's revenue and market position in the coming quarters.

For Agarwal Industrial Corporation Limited, securing this high-value contract from a prestigious client like IOCL represents a significant achievement. It not only boosts the company's order book but also enhances its credibility in the industrial supply sector, potentially paving the way for more such contracts in the future.

Investors and stakeholders will likely be keeping a close eye on how this contract contributes to AICL's financial performance and market standing in the upcoming fiscal periods.

Agarwal Industrial Corporation Limited (AICL), a leading private sector bitumen and allied product manufacturing company in India, has reported a challenging first quarter for the fiscal year 2026. The company faced significant headwinds due to geopolitical tensions and weather-related disruptions, resulting in a decline in revenue and profitability.

Financial Performance

AICL reported revenues of Rs. 594.00 crores for Q1 FY26, marking a 16.1% year-over-year decline from Rs. 708.00 crores in Q1 FY25. The company's EBITDA fell by 38.7% to Rs. 38.00 crores, with margins contracting to 6.4% from 8.7% in the same quarter last year. Profit after tax (PAT) saw a sharp drop of 66.6% to Rs. 13.00 crores.

Operational Highlights

• Bitumen volumes decreased by 26.9% to 124,614 MT.

External Challenges

The quarter was marked by significant external challenges that impacted AICL's operations:

1. India-Pakistan war led to disruptions in trade flows and shipping schedules, affecting operations for approximately 15 days.
2. Heightened geopolitical tensions across the USA, Iran, and Israel disrupted UAE and Middle East regional trade, impacting shipping movements for nearly a month.
3. Early onset of monsoon slowed construction activity, leading to softer demand for bitumen.

Management Commentary

Mr. Lalit Agarwal, Whole Time Director of AICL, commented on the results: "This performance reflects steady operations across business segments but in a quarter heavily influenced by external factors. Despite these headwinds, India's road infrastructure sector continues to provide a positive demand environment."

Future Outlook

Despite the short-term challenges, AICL remains optimistic about the long-term prospects:

• The Indian government has targeted project awards worth Rs. 7 lakh crore by FY26, scaling up to Rs. 10 lakh crore annually thereafter.
• Programs such as Bharatmala and PM Gati Shakti are expected to drive growth in the infrastructure sector.
• The government's target of building 100 km of roads per day reflects the scale of opportunity in the sector.

Agarwal Industrial Corporation, with its integrated platform of import-led sourcing, seven port-based storage facilities, dedicated shipping fleet, and 650+ vehicle logistics network, is well-positioned to address India's rising demand for bitumen as infrastructure investments accelerate.

The company will hold a conference call with analysts and investors on Friday, August 22, 2025, at 4:00 PM to discuss the Q1 FY26 financial results in more detail.