AWL Agri Business Q1 Results: Higher expenses dent margins, volume growth guidance maintained

AWL Agri Business Ltd. reported its June quarter results on Tuesday, July 15, following which, the stock fell from the highs of the day.The company’s net sales increased by 20.5% from the same quarter last year to ₹17,058 crore. Revenue growth was driven by higher edible oil realisations. However, higher expenses resulted in a 24% decline in net profit to ₹236 crore from ₹313 crore in the year-ago quarter.

AWL Agri’s expenses increased by 23% on a year-on-year basis to ₹16,954 crore.

The company’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) fell 41.5% on a year-on-year basis to ₹366 crore, while margins saw a contraction to 2.15% from 4.42% last year.
AWL Agri’s numbers will be on the subdued side was evident from the company’s business update that it had shared earlier in the month.The business update had disclosed that the quarter has been a challenging one due to a convergence of headwinds of muted consumer demand, strategic consolidation of regional rice operations, the wind-down of G2C rice sales, and fluctuates in edible prices.

Overall volumes for the quarter by 4%, with rice being the key drag.

Quick commerce sales increased by 75% during the quarter. Revenue from alternate channels, modern trade, e-commerce, quick commerce, and e-B2B, surpassed ₹3,900 crore during the trailing 12 months.

In an interaction with CNBC-TV18 after the results the management attributed majority of the volume drop to edible oil and rice, but maintained its full-year volume growth guidance of 7% to 9%.

Shares of AWL Agri business are currently trading 1.1% lower at ₹265.25. The stock has already declined 20% so far in 2025.