AWL Agri Business, formerly known as Adani Wilmar, delivered better-than-expected fourth-quarter profit on Tuesday at Rs 292 crore, a jump of nearly 54% versus last year, driven by growth in its edible oils business. Q4 revenue increased 17.7% year-on-year to Rs 21,465 crore, marking the company’s highest quarterly revenue.
This was supported by a 14% overall volume growth in Q4. In a conversation with Viveat Susan Pinto, MD & CEO Shrikant Kanhere explains the drivers behind the surge, the role of trade stocking, and why FY27 could bring fresh cost pressures. Excerpts:
1)What were the triggers for the financial performance in Q4. Will the momentum last in Q1?
Topline performance in Q4 was largely led by volume growth. While there were price hikes of about 5-6% (in March), which was an industry-wide phenomenon, triggered by the Iran war, consumer demand was largely stable. Edible oil volumes grew about 17%, food business volumes grew around 6%, and industry essentials about 30%, taking overall volume growth to roughly 14% in Q4.
This, combined with elevated edible oil prices, drove the record revenue in Q4. Our margins and profitability remained largely in line with our stated guidance.
If you ask me about the momentum lasting into Q1, my answer to that will be no. Q1 of FY27 will likely bear the brunt of rising input costs, particularly in packaging and chemicals, triggered by the Iran war.
Much will depend on our ability to pass on costs or drive efficiencies. At the same time, there are risks attached if the monsoon season is weak this year. That could lead to price volatility and demand disruption. That is a key concern for us in FY27.
2) You did one round of price hikes in March. Are more expected in the future? And what explains for the demand resilience in March despite inflationary pressures?
March was an unusual month. We saw strong buying from the trade—distributors and wholesalers—who increased inventory levels amid geopolitical uncertainty. At the consumer level, demand remained steady, but trade stocking boosted volumes. So, while January and February benefited from festive and wedding demand, March saw incremental demand due to trade stocking.
To your question on further price hikes, much will depend on how edible oil prices move. While they have been stable of late, but if crude oil remains elevated and geopolitical risks persist, price increases in edible oil cannot be ruled out.
3) Given macro-economic uncertainties, do essentials provide a cushion?
Yes. As an essential goods company, operating mainly in food and edible oils, demand remains relatively resilient. Essentials shield demand. But, during high inflation, consumers may down-trade to lower-priced offerings. That is one area to watch. Second, inflation tests margins. So, maintaining cost discipline is an imperative.
There can be no slip-ups there. Having said that, our diversified brand portfolio allows us to retain consumers within our ecosystem, which gives us some relief as far consumer management is concerned especially in inflationary times.
4) What is your capex outlook for FY27?
We typically invest Rs 600–700 crore annually, and FY27 will be similar. A key project is the oleochemicals complex at Krishnapatnam, Andhra Pradesh, which is expected to be commissioned by late 2026. Also, food remains a major focus area, where we will continue to invest in capacity.
5) How significant are alternate channels like e-commerce and quick commerce?
These are high-growth channels for us. They grew over 40% year-on-year in FY26. Currently, they contribute about 15% of edible oil volumes and 25% in the food segment. We see these as channels of the future and will continue investing in them.
6) What about distribution-led expansion?
A: Distribution-led growth is central to our strategy. We currently reach about 9.5 lakh outlets directly and over 2.5 million outlets in terms of total reach. We aim to cross 1 million (10 lakh) outlets in terms of direct reach by FY27. On rural expansion, we plan to reach 80,000 villages from 50,000 now in the coming years.
7) What are your plans for new products and categories?
A: We are focusing on expanding within existing categories. Recent launches include multigrain atta and premium edible oil variants under the ‘Fortune Premio’ range. We are also working on value-added and higher-margin products.