AWL Agri Business shares fell sharply to a 52-week low after the company reported a decline in its September quarter profit. The company’s net profit dropped by 2.3%, and its earnings before interest, taxes, depreciation, and amortization (EBITDA) decreased by 10%, signaling challenges in its recent financial performance.
- Net profit declined 2.3% to ₹239 crore in July-September 2026.
- EBITDA dropped 10% to ₹623 crore, with margin contracting by 110 basis points to 2.8%.
- Total expenses rose 27.5% to ₹21,939 crore compared to the previous year.
- Revenue from operations increased 26% to ₹22,202 crore.
- Food and FMCG segment revenue grew 32%, reaching ₹2,216 crore.
- Shares fell as much as 9.5%, hitting ₹159.65, a 52-week low.
Why Did AWL Agri Business Profit Decline in the September Quarter?
The company’s net profit for the quarter ending September 2026 was ₹239 crore, down from ₹245 crore in the same period last year. This decline was mainly due to higher expenses and a one-time tax charge. Specifically, minimum corporate tax applied to revenue from the company’s Bangladesh subsidiary increased consolidated tax expenses, impacting overall profitability.
How Did Expenses and Revenue Change During the Quarter?
Total expenses surged by 27.5% to ₹21,939 crore, up from ₹17,213 crore in the previous year’s quarter. Despite this, revenue from operations grew by 26% to ₹22,202 crore, showing strong sales growth. The increase in expenses outpaced revenue growth, contributing to the profit decline.
What Was the Performance of Different Business Segments?
The Food and FMCG segment was a key growth driver, with revenue increasing 32% to ₹2,216 crore. This segment maintained an EBITDA margin of 3.2%, aligning with the company’s financial guidance for the fiscal year. Industry essentials saw a 26% volume growth, supported by oleochemicals, specialty chemicals, and a health and convenience portfolio that crossed ₹1,400 crore in revenues over the last twelve months.
The edible oils segment recorded a 5% year-on-year volume increase, with EBITDA around ₹4,100 per metric ton, consistent with management’s guidance of ₹4,000 to ₹4,500 per metric ton.
What Was the Market Reaction to the Earnings Report?
Following the earnings announcement, AWL Agri Business shares dropped as much as 9.5% to ₹159.65, marking a fresh 52-week low. By mid-morning trading, shares were down 8.11% at ₹162, underperforming the broader NIFTY500 index, which declined by 0.35%.
What Did Company Leadership Say About the Results?
Shrikant Kanhere, Managing Director and CEO of AWL Agri Business, stated, "We delivered a strong performance in Q2 FY27, with revenue growing 26% and underlying volume growth of 14%, reflecting the strength of our diversified portfolio and consistent execution across businesses. Our Food & FMCG business remained a key growth driver, delivering 32% revenue growth and crossing INR 2,200 crore in quarterly revenues, while maintaining profitability in line with our expectations."
Despite the profit decline and margin contraction, the company highlighted the growth in revenue and volumes as positive indicators for its future performance.
