AWL margin slips as costs outpace sales; stock falls after results
Revenue growth remained high, but volume growth lagged and other income made up 45.14% of pre-tax profit.
Filed 28 Apr 2026, 15:52 IST · after market close · AWL Agri Business Ltd (AWL)
Key takeaways
- Consolidated revenue grew 17.75% year on year, but Food & FMCG volumes grew only 6% in Q4FY26.
- Operating margin narrowed 0.53 percentage points sequentially as expenses grew 16.02%, faster than revenue growth of 15.39%.
- Other income contributed 45.14% of profit before tax, while the stock fell 2.31% on the first trading day after the results.
Price around the results
Revenue growth outpaced volumes in Q4FY26
AWL Agri Business reported consolidated revenue growth of 17.75% year on year to Rs 21,464.78 cr, while management said Food & FMCG volumes grew 6%. The gap points to the contribution of pricing and product mix to reported growth. Management said it expects Food & FMCG growth momentum to continue in coming quarters.
Operating margin fell for a second straight quarter
Sequentially, expenses grew 16.02% against revenue growth of 15.39%, reducing operating margin by 0.53 percentage points. The 2.44% margin was also 0.02 percentage points below Q4FY25, after declining from 3.91% in Q2FY26 to 2.97% in Q3FY26. Management said advertising and promotion spending was high during the quarter, while depreciation rose 30.75% year on year.
Other income lifted profit quality concerns
Net profit grew 53.71% year on year, faster than operating profit growth of 16.84%, as other income rose 139.29% and accounted for 45.14% of pre-tax profit. The tax rate also increased 4.17 percentage points year on year to 27.44%, so the profit increase was not aided by a lower tax rate. Interest expense declined 2.17% year on year.
AWL remained near the bottom of its FMCG peer set
AWL's 2.44% operating margin was 14.31 percentage points below the 16.75% median for 26 Fast Moving Consumer Goods peers that had reported the quarter. It ranked second from the bottom on this measure. Management said edible-oil capacity utilisation was around 65%, leaving room for incremental volume growth without significant capex.
The initial sell-off was larger than AWL's usual reaction
The stock fell 2.31% on the first trading day after the results and was down 4.17% after one day, with trading volume at 2.18 times the reference level. Across its last eight result reactions, AWL rose three times and fell five times, with a median absolute move of 1.16%, making the initial decline larger than its typical move. Management also said the company is expanding international distribution across more than 35 countries and gradually diversifying into specialty chemicals, which contribute 7–8% of the portfolio.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹21,465 cr | ₹18,603 cr | +15.39% | +17.75% |
| Other income | ₹182 cr | ₹114 cr | +60.58% | +139.29% |
| Expenses | ₹20,941 cr | ₹18,050 cr | +16.02% | +17.77% |
| Operating profit | ₹524 cr | ₹553 cr | -5.29% | +16.84% |
| Operating margin (%) | 2.44% | 2.97% | — | — |
| Interest | ₹174 cr | ₹185 cr | -5.66% | -2.17% |
| Depreciation | ₹128 cr | ₹111 cr | +15.05% | +30.75% |
| Profit before tax | ₹404 cr | ₹371 cr | +8.97% | +62.53% |
| Tax | ₹111 cr | ₹102 cr | +9.06% | +91.63% |
| Net profit | ₹293 cr | ₹269 cr | +8.93% | +53.71% |
| EPS (₹) | ₹2.26 | ₹2.08 | +8.65% | +53.74% |
Operating margin of 2.44% compares with a Fast Moving Consumer Goods sector median of 16.75% across 26 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.31% | -3.07% |
| Next session | -4.17% | — |
| 5 sessions | +3.43% | +2.05% |
| 15 sessions | -3.26% | — |
| 30 sessions | -6.88% | — |
Volume on the results session was 2.18× its 20-day average.
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 volumes grew 6% year on year in Q4 FY26, while revenue grew 18%.
Guidance & outlook
- The company expects Food & FMCG growth momentum to continue in coming quarters.
- The company is targeting 20% ROCE at company level as the food business matures.
- The company expects Food business ROCE to reach more than 25% as it matures.
Expansion
- Edible oil capacity utilisation is around 65%, leaving room for incremental volume growth without significant capex.
New products
- The company launched a new Fortune Premio range across quick commerce and e-commerce in four Indian markets.
- The new Fortune Premio range includes 500 ml and 1 litre SKUs.
New initiatives
- The company is strengthening its international distribution and entering new markets across more than 35 countries.
- The company is gradually diversifying into specialty chemicals, which contribute around 7–8% of the portfolio.
Competition
- Edible oil market share improved by 60 basis points during the quarter.
- Basmati rice market share improved by 330 basis points on a MAT basis in March 2026.
Problems & risks
- Wheat flour market share declined by 20 basis points on a MAT basis in March 2026.
- Edible oil MAT market share declined by 10 basis points due to palm oil share losses in previous quarters.
- The Industry Essentials segment's Q4 PBT declined 34% year on year.
- Marketing spending on advertisements and promotions was high during the quarter.
What to watch
- Whether operating margin recovers from 2.44% and reverses the two-quarter decline from 3.91% in Q2FY26.
- Whether Food & FMCG volume growth moves closer to the 18% revenue growth reported for the quarter.
- Whether other income remains below its 45.14% share of pre-tax profit.