AWL Agri Business Q1 FY26: Volumes Dip, But Revenue Shines!
Hey there, finance fam! 👋 Let’s dive into the latest updates from AWL Agri Business Limited (formerly Adani Wilmar Limited), a major player in India’s Food & FMCG sector. They’ve just released their preliminary Q1 FY26 business insights, and it’s a mixed bag of results that paints an interesting picture.
Overall, AWL faced a challenging quarter. The company reported a 4% year-over-year (YoY) decline in overall volumes for Q1 FY26. This was mainly due to muted consumer demand, strategic moves in regional rice operations, the phasing out of government-to-government (G2G) rice sales, and fluctuating edible oil prices. However, it wasn’t all headwinds! 🌬️ On the flip side, revenue remarkably soared by 21% YoY, largely thanks to higher edible oil realizations.
Let’s break it down by segments:
Edible Oil Segment
The Edible Oil segment saw a 2% YoY volume decline, primarily due to ongoing pressure on palm oil sales. But here’s the bright spot: excluding palm oil, branded volumes still managed low single-digit growth, with mustard oil showing strong performance. Good news for local refiners too – recent import duty reductions on crude edible oil have actually strengthened their market position in India. 💪
Food & FMCG Segment
This segment, excluding the G2G business (which was mostly discontinued after Q3 FY25), saw a 21% YoY volume decline and a 13% YoY value decline in Q1 FY26. The exit from the G2G rice business and consolidation of regional rice operations were significant factors.
However, there’s some sweet success brewing! Basmati rice volumes grew in double digits, thanks to strategic portfolio adjustments and better distribution. Other categories like pulses & besan, soya nuggets, sugar, and poha all enjoyed high-teen percentage volume increases, driven by rising quick-commerce demand and expanded reach. In wheat flour, despite volume challenges, AWL gained about 30 basis points in market share over the last 12 months, and they’re expanding their value-added flour offerings.
Industry Essentials
This segment was a star performer, with volumes growing by 9% YoY and value by 15% YoY. It even crossed the INR 2,000 crores quarterly revenue milestone! 🎉 AWL remains India’s top exporter of Castor Oil, constantly exploring new markets.
The Digital Leap: Alternate Channels
AWL’s quick commerce sales continued their impressive run, delivering over 75% YoY growth in Q1. The strength of their brand portfolio truly shines through these channels. Combined revenue from Modern Trade, e-commerce, quick commerce, and e-B2B has surpassed INR 3,900 crores over the last twelve months (LTM). Plus, they’ve hit their rural reach target of 50,000 towns in General Trade, now focusing on maximizing throughput.
Q1 FY26 Performance at a Glance (Standalone Basis):
| Business Segment | Q1'26 – YoY Growth (Volume) | Q1'26 – YoY Growth (Value) |
|---|---|---|
| Edible Oil | (2%) | 28% |
| Food & FMCG | (21%) | (13%) |
| Industry Essentials | 9% | 15% |
| Standalone (Overall) | (4%) | 21% |
Note: These figures are indicative and will be finalized with book closure.
Business Mix for Q1 FY26:
| Business Segment | Q1'26: Business Mix (Volume %) | Q1'26: Business Mix (Value %) |
|---|---|---|
| Edible Oil | 60% | 79% |
| Food & FMCG | 17% | 8% |
| Industry Essentials | 23% | 13% |
| Standalone (Overall) | 100% | 100% |
AWL Agri Business Ltd. is a powerhouse in essential kitchen staples, with its flagship ‘Fortune’ brand reaching a significant portion of Indian households. With 24 manufacturing facilities and a vast distribution network, they continue to innovate and expand their offerings, even venturing into Home & Personal Care products. You can learn more about them on their official website: www.awl.in.
It looks like AWL is navigating a complex market with strategic adjustments and a focus on high-growth areas like alternate channels. Keep an eye on how these strategies play out in the coming quarters! 👀
source: Corporate Announcement
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