Shares of AWL Agri Business Limited (formerly Adani Wilmar) rose nearly 6% to ₹278.05 as of 11:06am on Wednesday, after Nuvama Institutional Equities retained its ‘Buy’ rating on the stock with a target price of ₹397, implying a potential upside of 51%.
Nuvama’s optimism stems from the company’s robust 20% YoY revenue growth in Q1FY26, largely driven by higher realisations in the Edible Oil segment. However, the earnings report also revealed a sharp 41% YoY decline in EBITDA due to persistently high input costs. A commodity derivative gain of ₹150 crore helped cushion the margin hit.
Despite the topline performance, volumes slipped 5% YoY as rice and palm oil segments underperformed. Gross margin contracted 340 basis points to 9.4%, while EBITDA margin narrowed 222 bps YoY to 2.1%.
“In light of a weak Q1, we are cutting our FY26 and FY27 EBITDA estimates by 6.8% and 5.3%, respectively,” Nuvama noted in its report.
The stock witnessed strong trading activity with over 16.5 crore shares exchanged and the day’s high touching ₹283.70. AWL Agri’s market cap currently stands at approximately ₹34,214 crore.
Disclaimer: Views expressed are from the brokerage report cited and do not constitute investment advice.
