This article first appeared on GuruFocus .
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Volume Growth (Q2):1.68 million tonnes, 7% sequential growth, 2% year-on-year growth.
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EBITDA (Q2):INR 600 crore, 7% sequential growth, 9% year-on-year degrowth.
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Consolidated PAT (Q2):INR 245 crore, 3% sequential growth, 21% year-on-year degrowth.
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Volume Growth (H1):3.26 million tonnes, flattish growth compared to last year.
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EBITDA (H1):INR 1,200 crore, 13% year-on-year degrowth.
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Consolidated PAT (H1):INR 483 crore, 23% year-on-year degrowth.
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Gross Margin (H1 & Q2):INR 11,000 per tonne.
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EBITDA per Tonne (H1 & Q2):INR 3,500 per tonne.
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Revenue Growth:20% driven by high commodity prices.
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Alternate Channel Revenue (LTM):Over INR 4,400 crore, growing at 80-85%.
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Branded Export Growth (LTM):37%.
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Edible Oil Revenue Growth:26%, driven by high prices.
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Edible Oil PBT:INR 171 crore, 55% year-on-year drop.
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Food and FMCG Volume (Q2):320,000 tonnes, 10% degrowth.
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Food Basket PBT (Q2):INR 56 crore.
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Market Share (Basmati Rice):Increased from 7.3% to 7.7%.
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Market Share (Wheat Flour):Maintained at 5.5%.
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Sugar Growth:20%+.
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Poha Growth:30%+.
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Industry Essential Volume Growth:20%, with a three-year CAGR of 8%.
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GD Foods Volume Growth:8%.
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GD Foods Revenue Growth:4%.
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Alternate Channel Growth (Q2):35%, with quick commerce growing by 86%.
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Direct Outlet Reach:Close to 900,000 outlets.
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Warning! GuruFocus has detected 2 Warning Signs with BOM:543458.
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Is BOM:543458 fairly valued? Test your thesis with our free DCF calculator.
Release Date: November 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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AWL Agri Business Ltd ( BOM:543458 ) reported a sequential volume growth of 7% in Q2 FY26, indicating a recovery in demand.
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The company achieved a sequential EBITDA growth of 7%, reaching INR600 crore in Q2 FY26.
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AWL Agri Business Ltd's alternate channel is showing strong growth, with quick commerce growing over 80% and branded exports increasing by 37% on a last twelve months basis.
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The company has maintained a gross margin of INR11,000 per tonne and an EBITDA of INR3,500 per tonne, aligning with their guidance.
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AWL Agri Business Ltd is expanding its distribution network, now reaching close to 900,000 outlets directly, with significant growth in rural areas.
Negative Points
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Year-on-year, the company experienced a 9% decline in EBITDA and a 21% decline in PAT due to last year's exceptional commodity cycle gains.
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The edible oil segment saw a 55% drop in PBT due to low volumes and higher interest costs from increased working capital.
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Imports from Nepal, benefiting from a differential duty structure, are impacting the domestic edible oil market, contributing to a decline in AWL Agri Business Ltd's market share.
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The food and FMCG segment experienced a 10% volume decline, attributed to increased competition from small regional players.
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The company's overall market share in refined oil consumer packs has decreased by approximately 50 basis points due to competitive pressures from cheaper Nepalese imports.
Q & A Highlights
Q: Can you provide insights on the current margin trends and future stabilization expectations? A: We recommend analyzing margins on a per tonne basis rather than as a percentage of revenue due to commodity price fluctuations. Our target is a gross margin of INR11,000 per tonne and an EBITDA of INR3,500 per tonne. Despite last year's exceptional numbers due to commodity cycle gains, we expect to maintain these targets in H2.
Q: Could you elaborate on the performance and outlook for the Industry Essentials segment, particularly Oleo Chemicals? A: The Industry Essentials segment includes Oleo Chemicals, castor oil, and cakes and meals. This quarter's performance was driven by Oleo Chemicals, especially glycerin and stearic acid. While margins can be volatile, we aim for gross margins of INR11,000 per tonne and EBITDA of INR3,000 per tonne.
Q: How do you foresee the edible oil market in H2, considering the pricing trends and industry volume? A: We expect palm oil prices to stabilize, with soyabean and sunflower oil prices adjusting post-harvest. The GST cut should boost consumption in snack foods, increasing edible oil demand. H2 typically accounts for 60% of annual consumption, and we anticipate improved performance.
Q: What impact does the Nepal import issue have on the industry, and how might it be resolved? A: Nepal exports soyabean oil at 0% duty, creating a pricing advantage over domestic production. This affects border states like UP and Bihar. Despite trade body efforts, the SAFTA agreement limits government intervention. The issue may persist, impacting volumes.
Q: Can you discuss the market share dynamics in the edible oil segment, particularly regarding the impact of Nepalese imports? A: Nepalese imports have led to a market share decline of about 2.5%-3% in soyabean oil, affecting our overall market share by 50 basis points. We are the largest player in affected regions, and the cheaper Nepalese oil has impacted our sales.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
