AWL Agri Business Limited reported a mixed operating environment for Q3 FY26, marked by volatility in sunflower oil prices. Overall volumes grew by 3% YoY, with revenue up 10% YoY. Core brands like Fortune and Kohinoor showed robust growth, while the alternate channel delivered explosive volume growth of 42% YoY. Management remains focused on distribution leverage, especially for the expanding Food and FMCG portfolio.
Q3 FY26 Operating Environment and Financial Snapshot
During the Q3 FY26 conference call held on February 03, 2026, management noted a mixed operating environment. Key factors included heightened volatility in sunflower oil markets due to the Ukraine conflict, even as Russia emerged as the largest supplier to India. Edible oil prices remained largely rangebound. On the wheat front, prices were rangebound, putting players like AWL at a disadvantage compared to smaller repackers.
Financially, AWL reported that for Q3 FY26, overall volume grew by 3% year-on-year, while revenue increased by 10%. Profitability was in line with management estimates. On a consolidated basis, EBITDA for the quarter stood at INR637 crores, sustaining the trend of delivering over INR600 crores quarter after quarter. Last 12-month EBITDA reached close to INR2,200 crores.
Performance by Segment and Brand
Core brands demonstrated strong momentum. Fortune oils and Food delivered healthy 13% year-on-year growth. The acquired brand, Kohinoor, registered a strong 32% growth. Overall, Oil and Food together grew by close to 7% YoY.
Edible Oil volumes grew by 8%, showing broad-based growth across categories, including double-digit growth in mustard. Management noted that consumers are increasingly favoring preferred brands, with Fortune’s share increasing, possibly due to recent rate reductions ensuring affordability.
In the Food segment, volumes were flat overall, impacted by pricing actions in wheat and flat G2G sales. However, domestic branded rice delivered robust growth. Products other than rice and wheat (including sugar, nuggets, poha, suji, rawa, maida) grew by a strong double digit, now contributing 30% of the Food & FMCG volume.
Distribution and Channel Focus
Distribution remains a critical focus area. AWL now reaches close to 9,50,000 outlets directly, with rural distribution scaled up to over 60,000 towns.
The Alternate Channel continues to be a core focus, showing strong momentum with volume growing by an impressive 42% year-on-year. Quick commerce now accounts for close to 30% of overall alternate channel volumes, growing robustly by 65% YoY during the quarter.
On the recently acquired G.D. Foods (acquired April 2025), the business delivered a 15% revenue growth with underlying volume growth of 18%. Management confirmed that the healthy 54% material margins have been retained, leveraging AWL’s distribution network for scaling.
Outlook and Strategic Focus
For the Food business, management stated it has become EBITDA positive after price corrections but remains in an investment/growth phase for the next 2 to 3 years, expecting meaningful EBITDA margins around 5% to 7% long-term.
Key priorities include accelerating distribution expansion for G.D. Foods, investing in brand salience, and driving growth in value-added products, such as the recently launched Fortune Multi Grain Atta. Regarding the US tariff reduction, management anticipates benefits on the branded export side, where tariffs dropped from over 50% to 18%.
Source: BSE
