AWL Agri Business shares hit 52-week low after profit declines in September quarter

Shares AWL Agri Business, formerly known as Adani Wilmar, dropped as much as 9.5% to hit a fresh 52-week low of ₹159.65 on Wednesday, October 28 a day after it reported its September quarter earnings.

AWL Agri Business reported net profit of ₹239 crore in July-September period post market hours on Tuesday, marking a decline of 2.3% from ₹245 crore in the same period last year. Decline in profit came on the back of higher expenses during the quarter and one-time tax expense.

The marginal decline in PAT was primarily attributable to minimum corporate tax computed on revenue of Bangladesh subsidiary under local regulations, which impacted consolidated tax expenses during the quarter, the company said.

Its total expenses surged 27.5% to ₹21,939 crore compared with ₹17,213 crore in the year-ago period.

The company’s revenue from operations advanced 26% to ₹22,202 crore from ₹17,605 crore a year earlier.

The Ahmedabad-based company’s food and FMCG revenue grew 32% annually to ₹2,216 crore, with an EBITDA margin of 3.2%, in line with FY27 guidance. Industry essentials delivered 26% volume growth, supported by a higher contribution from oleochemicals and specialty chemicals and health and convenience portfolio crossed ₹1,400 crore in LTM revenues, reflecting the growing scale of AWL's differentiated food and edible oil offerings, AWL Agri sais.

The edible oils segment recorded 5% YoY volume growth, with EBITDA of around ₹4,100 per MT, in line with management's guidance of ₹4,000–4,500/MT.

The company reported weak operational performance as its earnings before interest, taxes, depreciation, and amortization (EBITDA) also known as operating profit dropped 10% to ₹623 crore and EBITDA margin contracted by 110 basis points to 2.8%.

"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," said Shrikant Kanhere, MD & CEO, AWL Agri Business.

As of 11:43 am, AWL Agri Business shares traded 8.11% lower at ₹162, underperforming the NIFTY500 index which was down 0.35%.