AWL Agri Business, a leading consumer products company, has reported its highest ever revenue in the first quarter of FY 2025-26. According to data released on Tuesday, the company’s total revenue stood at Rs 17,059 crore, up 21% over the same period last year.
The biggest contributor to this growth was the edible oil business, which registered a growth of 26% year-on-year. This segment earned Rs 13,415 crore, which is 78.6% of the total revenue and 61% of the volume mix.
At the same time, the food and FMCG segment also saw a slight increase, where revenue of Rs 1,414 crore was recorded with an increase of 4%. Although this segment contributed only 8% to the total revenue, its share in terms of volume was 16%. During this period, the company has also increased prices in this category.
In addition, the Industry Essentials segment grew 12%, contributing 12% to total revenue.
AWL is rapidly growing its food and FMCG business, riding on strong cash flows from the edible oil business, a strategy that is very similar to ITC’s strategy of growing its FMCG portfolio using profits from the cigarette business. The edible oil segment generates cash revenues of Rs 1,200 to Rs 1,500 crore per year for the company, which drives investments in new areas.
To expand its market reach, AWL has increased retail coverage by 18% to 8.7 lakh stores, including about 55,000 in rural areas, a tenfold increase over FY22.
Although the company’s revenue grew significantly, net profit declined to Rs 238 crore. This was mainly due to a sharp increase in raw material costs. Cost of goods sold (COGS) grew by 25%, far outpacing the company’s revenue growth. However, raw material prices have fallen by more than 10% in the last three months, which is expected to provide relief in the next quarters.
The company’s stock closed at Rs 263 on Tuesday, trading at a price-to-earnings ratio of 30 times based on last 12 months’ earnings – its lowest valuation in the last three years.
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