AWL Agri Business Ltd (formerly Adani Wilmar Ltd) reported a mixed performance for the first quarter of FY26, as the company navigated muted consumer demand and volatile commodity prices while maintaining growth in key segments and alternative channels.
The company’s revenue rose 21% year-on-year (YoY) in Q1 FY26, supported by higher realizations in edible oils, even though overall volumes declined by 4% YoY. The rice category was the main drag on volumes, while core categories showed healthy growth.
Key Highlights:
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Revenue growth: 21% YoY despite a 4% decline in volumes.
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Quick commerce: Sales in this channel grew over 75% YoY in Q1, reflecting strong consumer pull.
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Alternate channels: Revenue from modern trade, e-commerce, quick commerce, and e-B2B surpassed ₹3,900 crore on a trailing twelve months basis.
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Branded exports: Volumes grew 22% YoY, exceeding ₹300 crore in revenue.
Segment Performance:
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Edible Oils: Volumes declined 2% YoY due to palm oil weakness, but mustard oil supported low single-digit growth in branded volumes. Recent import duty cuts improved domestic refiners’ competitiveness.
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Food & FMCG: Revenue (excluding government-to-government rice sales) fell 2% YoY, while G2G rice business was largely discontinued after Q3 FY25. Basmati rice volumes rose in double digits due to improved distribution and product gaps addressed.
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Industry Essentials: Volumes grew 9% YoY, surpassing ₹2,000 crore revenue in Q1, led by de-oiled cake and castor oil exports.
The company also made strides in wheat flour by increasing brand premiums and expanding its portfolio into value-added flours, though volumes faced pressure from higher competition and premiums.
AWL consolidated its regional (non-basmati) rice operations to improve profitability, which impacted volumes but bolstered basmati sales and margins.
Sales Mix (Standalone, excluding G2G):
| Segment | Volume Growth YoY | Value Growth YoY | Business Mix (Value) |
|---|---|---|---|
| Edible Oils | -2% | +28% | 79% |
| Food & FMCG | -7% | -2% | 8% |
| Industry Essentials | +9% | +15% | 13% |
On a reported basis (including all segments), standalone volumes declined 4% while revenue rose 21%.
Outlook:
AWL expects growth momentum to continue in its edible oil business, aided by normalization of palm oil prices and favorable policy changes. In food & FMCG, further gains are expected in wheat flour and basmati rice, with newer products and improved margins driving performance. Industry Essentials is expected to maintain growth in exports and de-oiled cake sales.
