AWL Agri Business formerly known as Adani Wilmar reported a 24% decline in its June quarter consolidated net profit which was reported at Rs 236 crore versus Rs 313 crore in the year ago period as muted consumer demand, strategic consolidation of regional rice operations and one-off G2G rice business in the base year along with the fluctuations in edible oil prices, weighed on the earnings.
Meanwhile, the company recorded its highest-ever Q1FY26 revenue at Rs 17,059 crore which was up by 21% on the year-on-year basis.
The challenges led to a 5% YoY decline in overall volumes in Q1, with rice category being the key drag. However, the core categories delivered healthy volume growth and revenue rose 21% YoY, driven by higher realizations in edible oil.
Segment-wise, revenue from edible oils rose 26% YoY reaching Rs 13,415 crores. Excluding palm oil, branded volume grew in low single digits, supported by continued strong performance in mustard oil.
The Industry Essentials segment posted a 12% increase. Food & FMCG revenue declined by 8% as it was impacted by the consolidation of non-basmati rice business, one off G2G rice business in base year and lower rice exports.
On an LTM (last twelve month) basis the company delivered operating EBITDA of Rs 2,384 crores. In Q1 FY26, operating EBITDA stood at Rs 519 crores.On the distribution front, the company’s direct retail reach grew 18% YoY to 8.7 lakh outlets, with rural town coverage of around 55,000 — a tenfold rise from FY22.”Having achieved our rural reach target of 50,000 towns, we are now primarily focused on driving higher throughput from the newly added towns and outlets,” the company filing said.
Alternate channels generated over Rs 3,900 crores in revenue in LTM June 2025, led by strong volume growth in Quick Commerce, with Q1 growth of 75%.
Q1 headwinds
Raw-material prices in Q1 were around 30% higher, compared to base quarter, leading to a muted consumer demand. Additionally, market volatility in crude edible oil prices—driven by reduced customs duties, global geopolitical events, and higher biodiesel mandate in the U.S.—led to trade destocking during the quarter.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)