AWL Agri Business

“We expect margin to improve progressively from these levels with an aspiration to move towards high single-digit margin over the medium term, beginning FY28 onwards.”

“But going we always give a guidance of high single digit or low double digit kind of growth for the Industry Essentials which we should continue in H2 and therefore blended growth for the full year should not be kind of '26.”

“So, we are hoping that we should continue to get that volume growth of mid-single digit or a high single digit for overall scheme of the things for AWL in H2.”

“Our food and FMCG business remains a key growth driver, delivering 32% revenue growth and crossing INR2,200 crores in quarterly revenues.”

“Within rice, our basmati portfolio continued to gain market share while Kohinoor also delivered double-digit revenue growth.”

“We are particularly encouraged by the performance of Fortune pulses, which grew over 40% year-on-year with quarterly revenue crossing INR100 crores.”

“Our health and convenience portfolio is also gaining meaningfully with LTM revenues exceeding INR1,400 crores.”

“Moving to edible oils, the business delivered a 5% volume growth during the quarter. Despite a challenging operating environment, we maintained our market share supported by growth in domestic oils, particularly mustard, groundnut and cottonseed oil.”

“We see significant opportunities as consumption increasingly shifts towards branded and packaged foods, particularly across staples such as rice, wheat flour, pulses, besan and sugar.”

“Pulses remain a largely unorganized category with significant headroom for branded penetration.”

“See, for us, the urban grew better than rural, fact number one. But the difference between both is not that staggering.”

“So, the festivities will also spike in some demand and which may negate these kind of pressures.”

“Yes, the standardized pack is always favorable for branded companies like us because then you have a value level playing field across.”

“The stronger profitability was supported by an improving product mix, particularly the increasing contribution from oleochemicals and specialty chemicals, which accounted for 45% of the segment revenue.”

“But in our scheme of the thing most of the finance cost which increase, we recover it in our pricing part.”

“And since you have to declare the result by taking cutoff for a particular quarter or a half, you declare the number and therefore lots of many times the mark-to-market gains or losses either moves between one quarter to another quarter and therefore you will see the H1 number is quite better than the quarter two.”

“Yes, there might be some impact, but I think we should be able to recover everything from our pricing and that's what we are saying that our H2 should be similar to what which we have delivered in H1.”

“Given that, yes, in near term you may see some bullishness in palm oil but not the very high bullishness which is what generally the commentary is going on around the commodity world as we speak today.”

“So, because of that the inventory buildup, actually inventories have gone up by INR6,000 crores, not INR600 crores and that is primarily been then funded through our working capital lines.”

“So, company is actually building little more inventory on sunflower so that we don't go out of the market given the fact that we have a very strong brand as far as sunflower is concerned.”

“And therefore, the cash flow from the operation is shown as negative. But it's something which gets corrected in this upcoming quarter which is OND.”

“See this 8,500 of trade credit is nothing but a suppliers credit which we obtain for our imports.”

“I think for calculating net debt, this 8,500 should not be considered.”

“No, I don't think there is any plan. It is a very significant part of our business given the fact that it is a forward integration for us of a palm refining”

“growing at plus of 25% in GD Foods. And we have been able to maintain the margins also which were there.”

“Now we have started working particularly on the east part of India and the central part of India. So these are the 2 territories that we would be targeting in next maybe one one and a half years”

“There is still huge amount of scope which is still left in north itself for the company. Plus these 2 markets, East and Central, will come. Once these are stabilised, maybe we will think of West and going to the South.”

“Profit before tax grew 4% year-on-year to INR344 crores, while profit after tax stood at INR239 crores, marginally lower by 2% year-on-year. The marginal decline in PAT was primarily attributed to minimum corporate tax computed on revenue of Bangladesh subsidiary under local regulations, which impacted consolidated tax expense during the quarter.”

“Number two, with this deficit in rainfall of 12%, 13% across overall India and then couple of territories experiencing deficit more than 30%, 35%, 40% also and with the wheat growing areas of like Rajasthan, Haryana, Punjab where deficit I understand is more than 30%. So, therefore, this may have some impact on the Kharif harvest and the Rabi sowing.”

“And if this happens, then we may see some sluggishness in the rural demand.”

“The inflation is again another spoil factor which is going on right now, which is sitting at a very high with headline CPI touching close to 6% as we speak today.”

“It will not impact the profitability as such because of the fact that we have a brand in front of us and it impacts to usually the players where who do not have a brand equity in the market and therefore you can sustain the prices at which you have maybe bought the inventory.”

“And within that CPI, 6% food inflation is already at 7%, 7.5% kind of level.”

“We have delivered a strong performance in Q2 FY27 with consolidated revenue growing 26% year-on-year to INR22,202 crores, supported by underlying volume growth of 14%.”

“Coming to our distribution and channel strategy, our direct retail reach now stands at 9.7 lakhs outlets, while our total retail reach remains at around 26 lakhs outlet.”

“Normalized operating EBITDA grew 11% year-on-year to INR623 crores, reflecting continued profitable growth across our diversified businesses.”

“For H1 FY27, consolidated revenue grew 22% to INR42,250 crores, supported by underlying volume growth of 11%. Normalized operating EBITDA increased 25% to INR1,378 crores.”

“Profit before tax grew 27% to INR822 crores, while profit after tax grew 22% to INR591 crores.”