Adani Wilmar slides as Q1 PAT slumps 24% YoY to Rs 238 cr

However, revenue from operations jumped 20.52% YoY to Rs 17,058.65 crore in the quarter ended 30 June 2025, marking the company's highest-ever Q1 revenue.

Profit before tax was at Rs 310.60 crore in Q1 FY26, down 25.72% as against Rs 418.17 crore in Q1 FY25.

In Q1FY26, operating EBITDA stood at Rs 519 crore. On an LTM basis, the company delivered an operating EBITDA of Rs 2,384 crore.

The company faced a challenging quarter, impacted by a combination of headwinds, including subdued consumer demand, the strategic consolidation of regional rice operations, the absence of a one-off G2G rice order from the base quarter, and fluctuations in edible oil prices. These factors led to a 5% year-on-year decline in overall volumes in Q1 FY26, with the rice segment being the primary drag.

However, core categories showed healthy volume growth, and revenue increased by 21% YoY, driven by higher realizations in the edible oil segment.

In Q1 FY26, revenue from edible oils rose 26% YoY to Rs 13,415 crore, despite a 4% YoY decline in volumes to 0.96 million tonnes. Excluding palm oil, branded volumes grew in the low single digits, driven by sustained strong performance in mustard oil. Volatility in crude edible oil prices, driven by reduced customs duties, global geopolitical tensions, and a higher biodiesel mandate in the U.S., led to trade destocking during the quarter.

In Q1, the Food & FMCG segment reported revenue of Rs 1,414 crore, reflecting an 8% YoY decline, primarily due to the consolidation of the non-basmati rice business, the absence of a one-off G2G rice order in the base year, and lower rice exports.

In the wheat flour category, volumes were impacted by subdued consumer demand, higher brand premiums, and increased local competition.

Other food categories continued to register robust growth, with pulses & besan, soya nuggets, sugar, and poha all sustaining high-teen percentage increases in volume. The company expects these categories to maintain strong momentum, supported by rising demand from quick-commerce channels and an expanding outlet reach.

The Industry Essentials segment saw a volume growth of around 6% YoY, driven by strong performance in the de-oiled cake business. Meanwhile, volumes in oleochemicals and castor oil & derivatives remained largely flat in Q1, primarily due to near full utilization of capacity.

The Industry Essentials segment crossed the Rs 2,000 crore quarterly revenue milestone in Q1, recording Rs 2,230 crore, up 12% YoY.

In castor oil, the company retained its position as India's highest exporter and continued to expand into newer markets. The segment also delivered strong profits, with a PBT of Rs 100 crore, marking the highest profit in the last 12 quarters.

On the distribution front, direct retail reach grew 18% YoY to 8.7 lakh outlets, with rural town coverage expanding to around 55,000'representing a tenfold increase since FY22. Having surpassed the target of 50,000 rural towns, the focus is now on driving higher throughput from newly added towns and outlets. Alternate channels generated over Rs 3,900 crore in revenue on an LTM basis as of June 2025, driven by strong volume growth in quick commerce, which saw a 75% increase in Q1. This growth reflects continued improvements in assortment, availability, and promotional strategies.

Angshu Mallick, MD & CEO, AWL Agri Business, said, 'the company witnessed a temporary volume decline, primarily influenced by the consolidation of its regional rice operations and muted consumer demand. Encouragingly, the core categories delivered healthy volume growth, and revenue rose 21% YoY, driven by higher edible oil realizations. We also delivered healthy profits in LTM Jun '25 with operating EBITDA of Rs 2,384 crores and PAT of Rs 1,151 crores, nearing our highest-ever rolling 12-months profits, despite the headwind of custom duty cuts on edible oils.

Our focus on improving the profitability in the Food & FMCG segment has led to highest-ever PBT of 75 crores in Q1, with PBT margin of 5.3%. The reduction in customs duty on crude edible oils is expected to positively impact domestic refiners by boosting sales and curbing refined oil imports from both SAARC nations and edible oil producing countries. Additionally, the normalization of palm oil prices is likely to support volume growth in the coming quarters.

In the rice business, we delivered a strong turnaround in Q1, achieving double-digit volume growth in our Basmati business along with improved overall profitability in the rice portfolio. With the resiliency of our core business and large opportunity, we expect to continue to benefit from the formalization of the Indian staple food industry.'

AWL Agri Business (formerly Adani Wilmar) is one of India's largest food and FMCG companies, offering a wide range of essential kitchen staples such as edible oils, wheat flour, rice, pulses, and sugar. Its flagship brand, Fortune, is trusted by over 123 million households, reaching one in three Indian families.

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