AWL’s Q1 FY26 revenue grew 20% YoY on pricing tailwinds in edible oils. Segment-wise, edible oil revenue rose 26% YoY (volumes -4%), food and fmcg declined 8% YoY (volumes -20%) due to discontinuation of G2G rice and consolidation in regional rice, while Industry Essentials grew 12% YoY.
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AWL Agri Business Ltd. reported 20% YoY revenue growth due to pricing action, while volume growth was impacted by weakness in palm oil and rationalisation of rice business. Key pressures included:
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low single-digit growth in branded edible oil (ex-palm), with palm drag leading to ~135bps share loss in value segment;
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21.2% YoY volume decline in Food and FMCG, impacted by G2G base and regional rice consolidation;
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overall profitability was impacted by commodity inflation (+30% YoY). Positive points: supportive policy changes (cut in import duty of crude edible oil) and normalisation of palm oil prices should lead to recovery in edible oil business; branded Basmati saw double-digit growth aided by supply chain improvement, Q-commerce revenue grew ~75% YoY, with alternate channels now contributing over Rs 39 billion (LTM) – 6% of sales (better profitability than general trade).
Management remains focused on throughput-led recovery, with foods execution and rural expansion key to de-risking edible oil business and supporting long-term re-rating. Buy.
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