AWL Agri Business registers muted volume growth in Q3

According to the company's exchange filing, standalone volumes in Q3 FY26 were largely flat compared with Q3 FY25, while revenues grew 5% year on year, indicating modest price or mix-led growth.

At the segment level, the Edible Oil business delivered relatively better performance, with volumes rising 3% and value increasing 6%.

The Food & FMCG segment reported a marginal 1% decline in volumes but managed to post a 1% increase in value, reflecting stable realizations.

In contrast, the Industry Essentials division underperformed, with volumes contracting 7% and value declining 1% during the quarter.

AWL Agri Business stated that growth during the quarter was primarily led by uptick in both Edible Oil and Food & FMCG segment.

However, the overall volumes were dragged by de-growth in castor and de-oiled cakes classified under the Industry Essentials segment. Festive demand was relatively subdued during the quarter as trade continued to operate with lean inventory levels.

The Food & FMCG business has shown a gradual recovery over recent quarters with improved offtake, on the back of multiple interventions and improvements in the rice business.

While the overall rice business (ex-G2G) marginally declined in low single digits, the branded domestic rice business grew in strong double digits. Wheat Flour consumer pack business remained flat during the quarter, as demand continues to remain subdued this year.

However, wheat flour & refined flour business catering to HORECA segment recorded strong double-digit growth during the quarter.

Food & FMCG products other than rice & wheat business, contributing over one-third of the segment, recorded a strong growth exceeding 30% YoY in Q3 FY26.

Alternate channels (E-com, Q-com, MT) continued the strong growth momentum during the quarter, growing at 42% YoY in volumes. The channel recorded a revenue of ~INR 4,800 crore in the last twelve months. The strong momentum in channel was led by record 65% YoY volume growth in Quick Commerce.

Most of the products on e-commerce recorded a solid growth, with atta & rice registering a growth exceeding 40% YoY. With the increasing relevance and competition across e-commerce platforms (including quick commerce), marketing spends towards the channel are being gradually rationalized in favor of alternate channel.

HoReCa and Branded exports (edible oil & foods) too recorded a strong double digit volume growth during the quarter. The company continues to focus on both these channels as they represent huge potential in the coming years.

AWL Agri Business is engaged in manufacturing of wide range of products, including edible oils, non-edible oil, de-oiled cake (DOC), vanaspati, specialty fats, food & FMCG products such as wheat, besan, atta, rice, and oleo chemicals, among others. Singapore-based Wilmar Group is the largest stakeholder in the company.

The company had reported 21% drop in net profit to Rs 245 crore despite a 22% increase in revenue from operations to Rs 17,605 crore in Q2 FY26 as compared with Q2 FY25.

The scrip shed 0.79% to currently trade at Rs 232 on the BSE.

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