loading
loading
AWL Agri Business Q2 profit falls 2.5% to ₹239 crore despite 26% revenue growth - Published OnOct 27, 2026 | 17:33 IST - Last Updated OnOct 27, 2026 | 17:33 IST AWL Agri Business saw robust double-digit revenue expansion countered by margin compression as rising operational expenses weighed on bottom-line profitability during the quarter. Discover how management plans to restore earnings growth amid persistent cost pressures. Food and FMCG company AWL Agri Business, formerly Adani Wilmar, reported a 2.5% year-on-year decline in net profit to ₹239 crore for the September quarter of FY27, compared with ₹245 crore a year earlier. The company said the marginal decline in profit after tax was primarily due to minimum corporate tax on its Bangladesh subsidiary’s revenue under local regulations, which increased consolidated tax expenses during the quarter. Revenue rose 26% year on year to ₹22,202 crore from ₹17,605 crore, driven by continued expansion of its Food & FMCG portfolio and healthy performance in Industry Essentials, the company said. However, earnings before interest, tax, depreciation and amortisation (EBITDA) fell 9.6% to ₹623 crore from ₹689 crore a year earlier. EBITDA margin narrowed to 2.8% from 3.9%. “We delivered a strong performance in Q2 FY27, with revenue growing 26% and underlying volume growth of 14%,” said Shrikant Kanhere, managing director and chief executive officer of AWL Agri Business. Food & FMCG revenue grows 32% in Q2 Revenue from the Food & FMCG business rose 32% year on year to ₹2,216 crore in the September quarter, with an EBITDA margin of 3.2%, in line with the company’s FY27 guidance. Industry Essentials recorded volume growth of 26%, supported by a higher contribution from oleochemicals and specialty chemicals. The company’s Health & Convenience portfolio crossed ₹1,400 crore in revenue over the last 12 months. “Our Food & FMCG business remained a key growth driver, delivering 32% revenue growth and crossing ₹2,200 crore in quarterly revenues,” Kanhere said. AWL Agri Business H1 FY27 performance For the first half of FY27, AWL Agri Business reported a 22% year-on-year increase in consolidated revenue to ₹42,250 crore, supported by underlying volume growth of 11%. Normalised operating EBITDA grew 25% to ₹1,347 crore. Profit before tax, including profit from joint ventures, rose 27% to ₹822 crore, while profit after tax increased 22% year on year to ₹591 crore. Subsidiaries report growth GD Foods, which owns the TOPS brand, recorded revenue growth of more than 30% year on year in its sauces and condiments business, supported by similar volume growth. The company attributed the performance to strong sales of sauces, instant noodles and vermicelli. Omkar Chemicals recorded 16% year-on-year volume growth in its specialty chemicals business as it continued to expand its value-added product portfolio. Distribution and new product launches AWL Agri Business’ direct retail reach stood at approximately 0.97 million outlets during the quarter. The company said it continued to focus on improving sales throughput and distribution efficiency in general trade. Revenue from alternate channels, including e-commerce, quick commerce and modern trade, grew 13% year on year. Quick commerce revenue increased by more than 40%, driven by a wider product range, better availability and execution across platforms, particularly in packaged foods, the company said. Revenue from the hotels, restaurants and catering (HoReCa) channel rose 22% year on year, with revenue over the last 12 months exceeding ₹800 crore. Branded exports revenue grew 72%, supported by wider international distribution and increased availability of its branded food products. The company launched Fortune Yellow Mustard Oil during the quarter. Products introduced earlier, including olive oil, cold-pressed mustard oil and multigrain atta, continued to gain traction, it said. Its subsidiary GD Foods also expanded the TOPS portfolio with the launch of chilli oil and multigrain chocos. AWL Agri Business shares ended 1.82% higher at ₹175.91 on Tuesday, gaining ₹3.14 ahead of the earnings announcement. Also Read: Honeywell Automation India Q2 profit rises 12% YoY to ₹134 crore
document fetched 2026-10-28 02:53 · canonical https://cnbctv18.com/market/earnings/awl-agri-business-q2-profit-falls-2-5-to-rs239-crore-despite-26-revenue-growth-20020491.htm