AWL Agri Business reported a 26% revenue surge to INR 22,202 crore in Q2 FY27, driven by strong growth in its Food and FMCG division. Despite a marginal 2% dip in quarterly profit due to tax adjustments at its Bangladesh unit, the company maintained steady volume growth across segments. Management expects annual revenue to hit INR 85,000 crore, signaling confidence in the current demand trajectory despite short-term inventory-related cash flow pressures.
AWL Agri Business Reports Strong Q2 FY27 Revenue Growth
Consolidated Revenue: INR 22,202 crore | Q2 PAT: INR 239 crore
Reader Takeaway: Strong top-line growth in FMCG drives revenue, while inventory build-up pressures short-term cash flow for the company.
What just happened
AWL Agri Business posted a consolidated revenue of INR 22,202 crore for the second quarter of FY27, reflecting a 26% year-on-year increase. While revenue expanded, the company reported a marginal 2% decline in Profit After Tax (PAT) to INR 239 crore. Management attributed this bottom-line pressure to minimum corporate tax computations related to its Bangladesh subsidiary. Notably, the H1 FY27 performance remains robust with a 22% increase in total revenue to INR 42,250 crore and a 22% rise in half-yearly PAT.
Why this matters
The company's Food and FMCG segment continues to act as a primary growth engine, recording a 32% revenue jump to INR 2,216 crore. Within this, the Fortune Pulses brand saw significant traction, growing over 40% year-on-year. The Industry Essentials segment also outperformed, delivering EBITDA of INR 4,300 per MT, which is well ahead of the guided range of INR 3,000-3,500 per MT.
Operational Insights
Management addressed concerns regarding negative operating cash flow, citing a strategic increase in inventory by INR 6,000 crore. This move was a response to sluggish September demand and precautionary supply chain management for sunflower oil. The company expects this inventory position to normalize in the subsequent quarter. Furthermore, management explicitly ruled out a demerger of the Industry Essentials/Oleochemicals division, identifying it as a crucial component of their value chain.
Outlook
Looking ahead, AWL Agri Business is targeting annual revenue of approximately INR 85,000 crore for FY27. For the Food & FMCG segment, margins are expected to remain within the 3-4% guidance range in the near term, with a long-term goal of achieving high single-digit margins. Edible oils volume growth is expected to maintain a mid-single-digit trajectory.
What to track next
Investors should monitor the normalization of inventory levels in the next quarter and the sustained performance of the Food & FMCG segment. The expansion of the 'Tops' brand into new geographies remains a key area for operational focus.