AWL Agri Business Reports 21% Profit Drop in Q2 Amidst Revenue Growth and Leadership Change

Financial Performance: AWL Agri Business reported a 21.3% decrease in net profit for the September quarter, falling to ₹244.7 crore from ₹311 crore in the same period last year. This profit decline was attributed to higher total expenses, finance costs, and employee benefit expenses.

Revenue and EBITDA: Despite the profit dip, revenue grew by approximately 22%, reaching ₹17,605 crore compared to ₹14,450 crore year-on-year. Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) also saw a 21% increase, rising to ₹688.3 crore. The EBITDA margin remained stable at 3.9%.

Business Update: In early October, AWL Agri indicated a 5% volume growth year-on-year, driven by edible oils and industry essentials. While most food and FMCG products performed well, a drop in non-branded rice exports affected overall segment growth. The company's Quick Commerce sales showed robust growth of 86%, with revenues from alternate channels exceeding ₹4,400 crore in the last 12 months.

Leadership Change: In a significant management update, Shrikant Kanhere has been appointed as the new Managing Director and CEO of AWL Agri Business. Angshu Mallick, the outgoing CEO, will transition to the role of Deputy Executive Chairman.

Stock Movement: Following the earnings announcement, shares of AWL Agri experienced volatile trading, trading 2.3% lower at ₹268.4. The stock has declined by 18% year-to-date in 2025.

Impact This news is likely to impact investor sentiment regarding AWL Agri Business's short-term profitability and future growth trajectory. Management changes can also introduce uncertainty or a new strategic direction. The stock price reaction suggests mixed investor reaction. Impact Rating: 7/10

Definitions: Net Profit: The profit remaining after all expenses, taxes, and interest have been paid. Revenue: The total income generated from the sale of goods or services related to the company's primary operations. EBITDA: Earnings Before Interest, Tax, Depreciation, and Amortisation. It's a measure of a company's operating performance before accounting for financing, accounting decisions, and tax environments. EBITDA Margin: EBITDA divided by Revenue, expressed as a percentage. It shows how efficiently a company converts revenue into operating profit. Volume Growth: The increase in the quantity of goods or services sold over a specific period. Quick Commerce: A type of e-commerce that focuses on very fast delivery, typically within minutes or an hour. Managing Director (MD): A senior executive responsible for the day-to-day management of a company. Chief Executive Officer (CEO): The highest-ranking executive in a company, responsible for making major corporate decisions. Deputy Executive Chairman: A senior leadership role, often assisting the Executive Chairman and involved in strategic oversight.