AWL Agri Business reported its Q2 FY26 earnings, highlighting a 7% sequential volume growth. While EBITDA saw a 9% year-on-year decline, the company is optimistic about H2, expecting improved consumption driven by festivities and better agri production. The company aims to achieve mid-single-digit growth in edible oil volumes and is focused on expanding its alternate channel, which grew significantly by 35% in Q2.
Financial Performance Overview
AWL Agri Business announced its Q2 FY26 results, showcasing a volume of 1.68 million tonnes, a 2% year-on-year increase, and a 7% sequential growth. EBITDA reached INR600 crores, also reflecting a 7% sequential rise. PAT stood at INR245 crores. H1 volume totaled 3.26 million against 3.31 million from last year, with EBITDA at nearly INR1,200 crores.
Segment Performance
The company faced a 10% volume degrowth in the food and FMCG sector, closing at 320,000 tonnes. However, by normalizing against the government’s prior rice export business, this is essentially flattish. Edible oil witnessed a volume growth of 2%. The alternate channel saw a substantial increase of 35%, significantly driven by quick commerce, which grew by 86%.
Strategic Outlook
AWL Agri Business is targeting a mid-single-digit CAGR for edible oils and is focusing on expanding its distribution network. The company reached nearly 900,000 direct outlets and aims for 1 million. They anticipate improved H2 performance, fueled by the marriage season, better agricultural prospects, and the impact of GST reductions on snack foods. The edible oil industry is facing challenges with imports from Nepal, affecting market dynamics, especially in North India.
Margin and Growth Strategies
The company maintains a gross margin target of INR11,000 per tonne and an EBITDA of INR3,500 per tonne. While the company’s food segment has remained EBITDA neutral, there are plans for expansion that might shift the overall outlook going into the future. They are working to reach INR10,000 crores in the food segment by fiscal year 27 by increasing capacity and further optimising sales.
Source: BSE
