AWL Agri Business clocks PAT of Rs 245 crore in Q2; sales volume up 7% QoQ

AWL Agri Business has reported 21% drop in net profit to Rs 245 crore despite a 22% increase in revenue from operations to Rs 17,605 crore in Q2 FY26 as compared with Q2 FY25.

COGS for the period under review was Rs 15,555 crore, up 23% YoY.

The company stated that over the past four quarters, edible oil prices have experienced significant inflation, leading to softness in consumer demand. Growth has been primarily price-led, while consumption volumes remain under pressure. Q2 edible oil revenue was Rs 13,828 crore, up 26% YoY, with an underlying volume growth of 2% YoY.

The Food & FMCG segment posted strong sequential momentum with 21% QoQ volume growth and revenue of Rs 1,681 crore. As compared with Q2 FY25, the revenue and volume are down by 2% and 10%, respectively.

The Industry Essentials volume grew by around 20% YoY driven by the growth in oleochemicals and de-oiled cake business. The segment recorded revenue of Rs 2,096 crore, up by 19% YoY.

EBITDA declined by 9.2% to Rs 609 crore in Q2 FY26 from Rs 671 crore posted in Q2 FY25.

Profit before tax in Q2 FY26 stood at Rs 313 crore, down by 22% from Rs 402 crore recorded in Q2 FY25.

Angshu Mallick, MD & CEO, AWL Agri Business, said: Consumer demand remained below expectations through the fiscal year, leading to lower-than planned volume growth.

Nevertheless, the company demonstrated agility in navigating external challenges, delivering a 7% sequential increase in sales volumes in Q2 over Q1.

Realization in edible oils business was higher due to YoY increase in the commodity prices, which also led to the softening of consumer demand in edible oils.

In the rice business, we delivered a strong turnaround in this financial year, achieving 30%+ volume growth in our branded Basmati business in both Q1 and Q2, along with improved overall profitability in the rice portfolio.

Quick commerce sales maintained strong momentum, delivering 86% YoY volume growth in Q2 and overall revenue from alternate channels (MT + Ecom) surpassed INR 4,400 crores over the last twelve months.

According to internal estimates, our market share in e-commerce (including quick commerce) stands at roughly 50% in Soya oil, approximately 40% in Mustard oil, around 30% in besan (gram flour), nearly 25% in Sunflower oil and in the low teens for wheat flour - reflecting strong consumer preference for the Fortune brand.

Food & FMCG volumes have already surpassed edible oils in alternate channels, and we aim to drive deeper penetration in general trade to achieve double-digit volume growth for the segment.

AWL Agri Business is engaged in manufacturing of wide range of products, including edible oils, non-edible oil, de-oiled cake (DOC), vanaspati, specialty fats, food & FMCG products such as wheat, besan, atta, rice, and oleo chemicals, among others. Singapore-based Wilmar Group is the largest stakeholder in the company.

The scrip shed 0.53% to currently trade at Rs 273.15 on the BSE.

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