Ahmedabad-based AWL Agri Business forecasts 8-9% volume growth for FY27, doubling its previous pace. The company aims for an EBITDA of ₹2,600-2,700 crore, supported by strong brand power and rising demand in the quick-commerce segment.
AWL Agri Business, a major player in the Indian edible oil market, has set an ambitious growth target for the fiscal year ending March 2027. The company anticipates volume growth of 8-9%, a significant acceleration from the 4% growth reported in the previous fiscal year. This forecast follows a positive performance in the April-June 2026 quarter, where the company recorded a 15% revenue increase and a 7% rise in underlying volume.
Financial Targets and Profitability
Management has outlined a clear path for profitability, projecting earnings before interest, taxes, depreciation, and amortisation (EBITDA) to reach between ₹2,600 crore and ₹2,700 crore by the end of FY27. This target reflects an expected 13% improvement over FY26 figures, moving the company back toward profitability levels seen in FY25. The company is also working toward a long-term goal of hitting ₹10,000 crore in revenue for its food division by March 2028. Analysts often view such EBITDA targets as a measure of the company's ability to manage operational costs while scaling its business.
Managing Market Volatility and Inventory
The company currently holds an estimated 17-18% share of the edible oil market and aims to expand this to 19% by the end of the year. During the April-June 2026 quarter, AWL Agri faced supply chain disruptions that led to an inventory build-up. Current stock levels sit at 45-50 days, higher than the usual 30-35 days, due to longer import lead times. However, with demand strengthening as the festive season approaches, management expects to normalize these levels by September. A key factor in maintaining margins during this period has been the company's ability to pass on rising raw material costs to consumers, a move supported by its established brand presence.
The Shift Toward Modern Sales Channels
Digital channels are becoming a critical growth pillar for AWL Agri. Sales through e-commerce and quick-commerce platforms saw a 56% surge in volume and 64% in value year-over-year. These platforms now account for about 10% of total edible oil sales. While the company continues to invest heavily in these channels to ensure product visibility, it notes that profitability remains comparable to traditional retail trade. By selling directly through digital platforms, the company is effectively bypassing some traditional intermediaries.
Investors may monitor the company’s ability to reduce current inventory levels over the next two months. Other tracking points include the actual realization of the projected 8-9% volume growth and the stability of global input prices, which remain vital for maintaining the company's target EBITDA margins throughout the fiscal year.