AWL profit jumps 47.67% as margin recovers, but lags FMCG peers
Revenue grew faster than expenses year on year, while other income still contributed 18.47% of pre-tax profit.
Filed 30 Jul 2026, 17:19 IST · after market close · AWL Agri Business Ltd (AWL)
Key takeaways
- Consolidated net profit grew 47.67% year on year even as other income fell 58.37%.
- Operating margin improved 1.32 percentage points year on year because revenue grew faster than expenses.
- AWL's 3.46% operating margin was 12.68 percentage points below the 16.14% median of 16 reported FMCG peers.
Price around the results
Volume growth supported a 17.52% revenue increase
Consolidated revenue rose 17.52% year on year, with expenses growing 15.95%, allowing operating profit to increase 89.48%. Management said underlying Food & FMCG volume growth was 18% year on year, led by rice, pulses, sugar, poha, and home and personal care. It also said alternate channels grew more than 25% year on year in Q1FY27.
Margin recovered sequentially, but profit quality needs attention
Operating margin expanded 1.32 percentage points year on year and 1.02 percentage points sequentially because expenses grew more slowly than revenue in both comparisons. Interest rose 17.38% year on year and 6.84% sequentially, partly offsetting the operating improvement. Other income fell 58.37% year on year, but still represented 18.47% of pre-tax profit; the year-on-year tax-rate increase of 1.68 percentage points also limited the conversion of operating gains into net profit.
Margin trend turns up after three quarters of decline
The operating margin had declined from 3.91% in Q2FY26 to 2.97% in Q3FY26 and 2.44% in Q4FY26, before recovering to 3.46% in Q1FY27. Sequential revenue fell 6.60%, but expenses fell 7.57%, which explains the margin recovery despite lower sales. The quarter's margin remained 12.68 percentage points below the 16.14% median for 16 FMCG peers that had reported, placing AWL third from the bottom.
Management links the next phase to food scaling and cost control
Management said the addition of Madhur supports its long-term plan to scale branded Food & FMCG. It said average long-term EBITDA margins are expected to be 3-4%, with further improvement over the next five years as the business scales, and that Food business ROCE is expected to reach more than 25% as the business matures. The company said GD Foods has ongoing cost-optimisation initiatives, while also noting that duty-free imports from Nepal continue to affect the market.
No post-results market move is available yet
The consolidated results were filed after market close, so there has been no reported market reaction to this quarter. After the previous eight results, the stock rose three times and fell five times, with a median absolute move of 1.16%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹20,048 cr | ₹21,465 cr | -6.60% | +17.52% |
| Other income | ₹88 cr | ₹182 cr | -51.53% | -58.37% |
| Expenses | ₹19,355 cr | ₹20,941 cr | -7.57% | +15.95% |
| Operating profit | ₹693 cr | ₹524 cr | +32.37% | +89.48% |
| Operating margin (%) | 3.46% | 2.44% | — | — |
| Interest | ₹186 cr | ₹174 cr | +6.84% | +17.38% |
| Depreciation | ₹117 cr | ₹128 cr | -8.54% | +13.84% |
| Profit before tax | ₹478 cr | ₹404 cr | +18.48% | +51.04% |
| Tax | ₹127 cr | ₹111 cr | +14.70% | +61.22% |
| Net profit | ₹351 cr | ₹293 cr | +19.90% | +47.67% |
| EPS (₹) | ₹2.71 | ₹2.26 | +19.91% | +47.28% |
Operating margin of 3.46% compares with a Fast Moving Consumer Goods sector median of 16.14% across 16 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Food & FMCG underlying volume growth was 18% year on year, driven by rice, pulses, sugar, poha and home and personal care.
- Alternate channels grew by more than 25% year on year in Q1FY27.
Guidance & outlook
- Long-term scaling of Food & FMCG is expected to improve EBITDA margins over the next five years.
- Food business ROCE is expected to reach more than 25% as the business matures.
- The addition of Madhur supports AWL's long-term strategy of scaling its branded Food & FMCG business.
New initiatives
- GD Foods is pursuing cost optimization initiatives to support margin expansion.
Competition
- Basmati rice market share continued to gain, while wheat flour market share remained stable, according to Nielsen.
Problems & risks
- Duty-free imports from Nepal continue to affect the market.
What to watch
- Whether operating margin holds above 3.46% after the Q1FY27 recovery.
- Whether underlying Food & FMCG volume growth remains near the 18% reported for Q1FY27.
- Whether interest growth moderates from 6.84% sequentially and reduces the drag on pre-tax profit.