This article first appeared on GuruFocus .
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Revenue:Consolidated revenue grew 18% year-on-year to Rs. 20,048 crore, supported by 7% underlying volume growth.
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Operating EBITDA:Grew 34% year-on-year to Rs. 693 crore.
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Profit Before Tax (PBT):Grew 48% year-on-year.
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Profit After Tax (PAT):Grew 48% year-on-year.
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Food and FMCG Segment Revenue:Grew 22% year-on-year to Rs. 1,726 crore.
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Food and FMCG Segment EBITDA:Rs. 104 crore, with a margin of 6%.
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Edible Oil Volume Growth:Low single-digit growth of 2% year-on-year.
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Edible Oil Revenue:Up 15% year-on-year.
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Edible Oil EBITDA per Metric Tonne:Up 33% year-on-year.
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Industry Essentials Volume Growth:13% year-on-year.
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Industry Essentials Revenue Growth:28% year-on-year.
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Industry Essentials EBITDA Growth:Up 47% year-on-year.
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Rice Revenue Growth:Over 40% year-on-year.
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Sauces, Pickles, and Convenience Food Growth:23% year-on-year.
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Alternate Channel Growth (Modern Trade, E-com, Quick-com):27% year-on-year.
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Quick Commerce Growth:56% year-on-year.
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Direct Outlet Reach:Close to 970,000 outlets.
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Total Outlet Reach:2.6 million outlets.
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Rural Presence:More than 63,000 towns.
Release Date: July 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Revenue grew 18% year-on-year to Rs.20,048 crore, with operating EBITDA up 34% and profit after tax up 48%, reflecting strong broad-based growth.
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Food and FMCG segment delivered 22% revenue growth, with rice growing over 40% and sauces, pickles, and convenience food up 23%, showcasing strong portfolio momentum.
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Industry Essentials segment reported 13% volume growth and 28% revenue growth, driven by oleochemicals and specialty chemicals, which now contribute over 40% of segment revenue.
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Future-ready channels (modern trade, e-commerce, quick commerce) grew 27% year-on-year, with quick commerce surging 56%, indicating strong adoption of structural shifts in consumer behavior.
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The company maintains a strong distribution network with direct reach to 970,000 outlets and a total reach of 2.6 million outlets, supporting cross-selling and market penetration.
Negative Points
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Edible oil volume growth was only 2% year-on-year due to temporary channel destocking and supply chain disruptions from sharp global price volatility.
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Food and FMCG EBITDA margin was 6% in the quarter, but management cautioned that this is not sustainable as a guidance, expecting it to revert to the average of the last four quarters (3-4%).
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The company faces ongoing challenges from edible oil price volatility, which is described as the 'new normal', potentially impacting future profitability.
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India's heavy dependence on edible oil imports (over 70%) remains a structural risk, with limited near-term reduction expected despite domestic sourcing initiatives.
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The Madhur brand acquisition involves a royalty payment of 0.5% on sales, and management prioritizes topline growth over margins, which may pressure near-term profitability in the sugar category.
Q & A Highlights
Q: What is the revenue and EBITDA margin guidance for the Food and FMCG segment going forward? A: Shrikant Kanhere (CEO & MD) stated that the company expects to continue delivering double-digit revenue growth, specifically guiding for 18-20% growth. He cautioned that the 6% EBITDA margin achieved this quarter should not be considered the run-rate, as the business remains in a growth and investment phase. Instead, the company expects to consistently deliver the average margin of the last four to five quarters.
Q: Can you provide details on the Madhur brand acquisition, including its current revenue, target scale, and the terms of the agreement with Shree Renuka Sugars? A: Shrikant Kanhere (CEO & MD) explained that Madhur is the number one sugar brand in the country, but Shree Renuka struggled to scale it. The objective is to leverage AWL's distribution network to grow the brand from its current 15,000 tons per month to 20,000 tons per month by year-end. This implies a full-year revenue potential of Rs. 700-800 crore. The brand is licensed, not owned, so AWL will pay a royalty of 0.5% on sales. The margin profile for this brand is expected to be in line with the overall food segment.
Q: Given the 2% volume growth in the edible oil business in Q1, what is the expected volume growth for the rest of the year? A: Shrikant Kanhere (CEO & MD) attributed the low growth to temporary channel destocking, supply chain disruptions, and sluggish trade due to price volatility. He clarified that this is not a new guidance and expects growth to recover to a moderate single-digit range of 5-6% for the remaining nine months, driven by the festive season and a return of demand.
Q: What is the company's long-term 2030 vision in terms of revenue, EBITDA, and the associated capital expenditure (CapEx) plan? A: Shrikant Kanhere (CEO & MD) reiterated the 2030 guidance of crossing Rs. 100,000 crore in revenue and Rs. 4,000 crore in EBITDA. While he couldn't give a specific CapEx number, he noted that edible oil refining capacity is currently at 60-61% utilization and will require expansion in the next couple of years. Additionally, 50% of the food business is currently on a tolling basis, which they plan to convert to owned operations. For modeling purposes, he suggested assuming an annual CapEx of around Rs. 700 crore.
Q: With Wilmar's increased ownership, what specific efficiencies or synergies can AWL expect to leverage? A: Shrikant Kanhere (CEO & MD) stated that sourcing efficiency was already a core strength due to Wilmar's market intelligence. The biggest new leverage will be in R&D, where Wilmar has significant expertise in extracting value from the supply chain. AWL will also continue to benefit from Wilmar's technical expertise.
Q: What is the current mix of B2C and B2B in the Food and FMCG business, and how is this expected to evolve? A: Shrikant Kanhere (CEO & MD) revealed that the food business is currently over 80% B2C and only about 15-20% B2B. However, they see significant potential in the B2B segment, as their large institutional clients who buy edible oil also require food products like wheat flour and rice. They are building this channel slowly, and it is expected to grow over time.
Q: What is the company's strategy regarding domestic sourcing of oilseeds, and can it reduce India's reliance on imports? A: Shrikant Kanhere (CEO & MD) acknowledged that India will remain dependent on edible oil imports for a long time, as it still imports close to 70% of its requirements. However, the company is focusing on the mustard segment and has a program with an NGO called Solidaridad to improve the efficiency of 3,500 model mustard farms. This initiative, supported by government efforts, is expected to have some impact on reducing import dependence.
Q: What is the company's approach to hedging and managing raw material inventory for edible oils? A: Shrikant Kanhere (CEO & MD) explained that the company does not speculate. The strength of its brands acts as the biggest hedge. They also hedge through forward sales. Regarding inventory, they typically carry 30-35 days of stock, which is necessary due to the 35-40 day voyage period for imported raw materials. Mark-to-market is done on a quarterly basis as per accounting standards.
Q: What is the regional mix of the edible oil business by type of oil? A: Shrikant Kanhere (CEO & MD) provided the breakdown: Palm oil accounts for 30% of the portfolio, Soybean oil for 30-35%, Sunflower oil for 20%, and the remaining 15% comes from local oils like mustard, groundnut, cotton, and rice bran.
Q: Is there any friction in cross-selling FMCG products through the existing edible oil distribution network? A: Shrikant Kanhere (CEO & MD) confirmed there is no friction. The company leverages its oil distribution network to offer a basket of products, including both edible oil and food items. This cross-selling strategy has been a key driver of the growth achieved in the food segment and will continue to be a focus.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
