Synopsis: AWL Agri Business is in focus after the company laid out a strong guidance for its Food & FMCG division to reach Rs 10,000 by the next 2-3 years with a strong 59 percent growth from its present scenario.
The shares of this leading company engaged in the edible oil and food and other FMCG products are in focus after making a strong guidance towards one of its business divisions. In this article, we will dive more into the details of it.
With a market capitalisation of Rs 34,156 crore, the shares of AWL Agri Business Ltd reached a day’s high of Rs 264.10 per share, up 1 percent from its previous day’s closing price of Rs 261.35 per share. In the last one year, the stock has corrected by over 16 percent, underperforming NIFTY 50’s positive return of 10 percent.
Management Guidance
The management of AWL Agri cited that the company’s primary focus in the coming days will be on the expansion of the food business, increasing the distribution network, and enhancing the margins. They have also conveyed that the exit of Adani has not affected the company’s operations, and it remains business as usual.
Currently, the contribution of food to the total volume is around 20 percent and to total sales is about 10 percent, and the management is targeting to take this to more than 25 percent (volume). Besides, they set an ambitious target for the food division to achieve Rs 10,000 crore in revenue within the next 2-3 years, which is a staggering growth of 59 percent from its FY25 sales figure from the Food division.
Moreover, the management expressed their intention to raise the rural sales share from 31 percent to 35 percent within the next couple of years as they see a continuous growth in rural demand. At the same time, they confessed that the domestic edible oil market has remained stagnant, and therefore, the major thrust will be from the expansion of the food category. In general, the management is confident that the food business will become the main impetus of AWL Agri’s subsequent growth journey.
Q2 Highlights
AWL Agri Business reported a core revenue of Rs 17,605 crore in Q2 FY26, a growth of 22 percent as compared to Rs 14,460 crore in Q2 FY25. Additionally, it grew by 3 percent from Rs 17,059 crore in Q1 FY26.
Strongly YoY, the Edible Oil segment was the main contributor to the overall performance of the business with a 26 percent increase. The sales hence went from Rs 10,966 crore in Q2 FY25 to Rs 13,828 crore in Q2 FY26. The Industry Essentials segment has also been able to maintain a good momentum by recording a 19 percent growth compared to the previous year. Its revenue was raised from Rs 1,766 crore in Q2 FY25 to Rs 2,096 crore in Q2 FY26. However, the Food & FMCG segment had a 2 percent YoY decline in its revenue, which went down a bit from Rs 1,718 crore in Q2 FY25 to Rs 1,681 crore in Q2 FY26.
Regarding its profitability, it reported a net profit of Rs 245 crore in Q2 FY26, a decline of 21 percent as compared to Rs 311 crore in Q2 FY25. However, it recorded a growth of 3 percent from Rs 238 crore in Q1 FY26.
Coming to its volume highlights, AWL Agri reported an overall volume growth of 2 percent YoY and 7 percent QoQ, reaching 1.68 million MT in Q2 FY26 from 1.64 million MT in Q2 FY25 and 1.58 million MT in Q1 FY26. On a segmental basis, Edible Oil constituted of 60 percent of the total volume, followed by Food & FMCG with 19 percent and the remaining 21 percent from Industry Essentials.
Will the FMCG Outlook be achieved?
The Food & FMCG segment of AWL Agri has been a significant contributor to the company, with strong and steady growth. This segment sales has grown from just Rs 2,621 crore in FY22 to Rs 6,273 crore in FY25. It is also to be noted that the Food & FMCG segment contribution to the company’s total sales is also rising; it went up from just 4.84 percent in FY22 to 9.85 percent in FY25.
The growth rate corresponds to a healthy CAGR of almost 34 percent, with the annual increase being consistently more than 20 percent. Due to this excellent performance and the food business gaining more and more strength, the company’s forecast of reaching Rs 10,000 crore in the next 2–3 years is a very realistic scenario and is actually an easy target, if the distribution expansion and rural demand go on as expected.
Written by Satyajeet Mukherjee
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