AWL Agri Business has increased its edible oil inventory to 40-45 days to guard against global supply chain disruptions. This strategic shift follows strong Q1 FY27 results, where the company reported a 17.52% revenue growth. Investors are watching how this inventory strategy impacts working capital requirements amid ongoing geopolitical volatility.
AWL Agri Business, the company behind Fortune cooking oil, is taking steps to secure its supply chain by increasing its inventory of imported edible oils. The company has raised its stock holding to 40-45 days, up from the usual 30-35 days, to buffer against potential disruptions caused by geopolitical tensions in the Middle East and the Russia-Ukraine region.
India remains heavily dependent on imports to meet its edible oil demand, sourcing nearly two-thirds of its requirements from global markets. By increasing its inventory, the company aims to ensure product availability even if international supply lines face unexpected interruptions. While this approach helps the company maintain a steady supply, it also requires locking up more capital in raw materials. Management has noted that while inventory costs rise, the impact on profit margins has remained manageable, supported by current commodity price trends.
This operational adjustment comes on the back of a strong financial performance for the first quarter of the 2027 fiscal year. In Q1 FY27, the company reported a consolidated revenue of ₹20,048 crore, marking a 17.52% increase compared to the same period last year. Net profit also saw a significant rise of 47.67%, reaching ₹351.39 crore. The company’s Food & FMCG segment was a key contributor to this growth, recording a 22% increase in revenue. Operating EBITDA for the quarter stood at ₹693 crore, a 34.04% jump year-on-year.
The company also recently updated its leadership team, with Pankaj Goyal taking over as the permanent Chief Financial Officer effective July 31, 2026. This leadership change occurs as the firm continues to navigate a complex global commodity environment.
For investors, the primary monitorable remains the balance between supply security and capital efficiency. While higher inventory levels protect against shortages, they increase working capital requirements. Additionally, the company’s reliance on imports leaves it exposed to fluctuations in global commodity prices and agricultural risks, such as monsoonal variations or climate patterns like El Niño, which can influence both availability and pricing. The company’s ability to pass on or manage these costs without hurting demand will continue to be a crucial factor for its profit margins in the coming quarters.