AWL Agri Business reports Q1 earnings: Profit falls amid rising expenses

AWL Agri Business Ltd (formerly known as Adani Wilmar) reported a 24% fall in net profit for the June quarter. Net profit slipped to Rs 236 crore in Q1 from Rs 313 crore on a year-on-year basis.

AWL Agri Business' stock closed 1.74% lower at ₹263.25 following the earnings announcement, marking a 20% decline in 2025 so far. Market cap of the firm fell to Rs 34,214 crore. 

The company's net sales increased by 20.5% to Rs 17,058 crore, primarily driven by improved edible oil realisations. However, rising expenses, which grew by 23% year-on-year to ₹16,954 crore, exerted pressure on the company's profitability, leading to a reduction in its EBITDA by 41.5% to ₹366 crore. This fall in margins was coupled with a contraction from 4.42% to 2.15%, reflecting the challenging conditions the company faced during the quarter.

The company cited several adverse factors, including muted consumer demand, a strategic consolidation of regional rice operations, and fluctuating edible oil prices, as primary challenges during the quarter.

Overall volumes decreased by 4%, with rice being a significant drag. Despite these setbacks, AWL Agri Business maintained its full-year volume growth forecast at 7% to 9%, attributing most of the volume drop to edible oil and rice, while quick commerce sales soared by 75% during the quarter.

Revenue from alternate channels, including modern trade, e-commerce, quick commerce, and e-B2B, exceeded ₹3,900 crore over the past twelve months, indicating a shift towards diversified sales channels.

The company had forewarned of subdued results earlier this month due to ongoing market headwinds. The management's outlook remained cautious, highlighting that the convergence of various challenges had impacted both margins and overall financial performance. Investors have shown concern over the company's ability to navigate these headwinds, with the quarterly results reinforcing the need for strategic adjustments in the face of a competitive market environment.