1. Opening Hook
Just when you thought edible oil prices were the only drama in your kitchen, Nepal shows up selling cut-price soya oil like it’s running a Black Friday sale in Patna. AWL clocked 1.68 million tonnes this quarter — decent, but the Nepal shocker made the management sound like they were quoting GDP numbers, not oil volumes.
As theBhagavad Gitareminds us, “Action is thy duty, reward not thy concern” — clearly written for FMCG analysts.Stick around: things get juicier than Fortune Refined Soyabean. 😏
2. At a Glance
- Volume 1.68 MT –“Barely grew, but hey, at least it grew.”
- Revenue +20% –Thank commodity prices, not consumer excitement.
- EBITDA ₹600 Cr –Sequential +7%; YoY -9% because last year had “commodity lottery wins.”
- PAT ₹245 Cr –Down 21% YoY; profits took a power nap.
- Edible Oil PBT -55% YoY –Nepal imports said “Namaste” and ate the margins.
- Food & FMCG Volume -10% –Remove G2G rice, becomes flattish — like a chapati without ghee.
- Alternate Channel +35% –Q-commerce up 86%; Zomato deliveries > rural demand.
3. Management’s Key Commentary
“Volume grew 7% sequentially; demand sluggishness is now recovering.”(Translation: Thank god oil prices stopped being unpredictable.)
“Gross margin of ₹11,000/tonne and EBITDA of ₹3,500/tonne are sustainable.”(Meaning: Judge us by per-tonne, not per-cent. Percentages betray us.)
“Nepal imports have become 12% of India’s soya imports.”(Translation: Nepal is third-wheeling our business and the government can’t stop them.)
“Food business PBT at ₹56 Cr—earlier it used to be zero.”(Sarcastic translation: We’ve finally graduated from ‘break-even kindergarten.’ 🎓)
“Q-commerce grew 86% with 40–50% market share across oils.”(Translation: Indians now buy oil like they buy ice cream—urgently and on apps.)
“Gohana plant and new Atta mills will help reach ₹10,000 Cr FMCG target by FY27.”(Meaning: Construction dust today, revenue dreams tomorrow.)
“Food will deliver meaningful profits only by FY28.”(Translation: Long-term investors, please don’t unsubscribe.)
4. Numbers Decoded
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Metric Q2 FY26 YoY Change
-------------------------------------------------------------
Volume (MT) 1.68 Mn +2%
Edible Oil Revenue +26% Price-led
EBITDA ₹600 Cr -9%
PAT ₹245 Cr -21%
Food & FMCG Volumes 3.2 Lakh T -10% (flattish ex-G2G)
Industry Essentials Volume +20% Driven by Oleo
Gross Margin/tonne ₹11,000 Within guidance
EBITDA/tonne ₹3,500 Within guidance
-------------------------------------------------------------Decoded:
- Edible oil is growing like a moody teenager: sometimes up, sometimes sulking.
- Nepal oil imports slapped 2.5–3% market share out of AWL in core states.
- Industry Essentials is the surprise hero, glycerin and soap noodles doing heavy lifting.
- Food stays the underachiever but shows signs of life.
5. Analyst Questions (Simplified & Roasted)
Q: Are margins bottoming out?A: Look at per-tonne, not percentages. (Translation: Stop asking percentage questions.)
Q: Can G2G and Nepal impact reverse?A: G2G yes, Nepal… LOL no. (SAFTA agreement says: “Bas, enjoy.”)
Q: Q-commerce margins same as GT?A: Almost. But apps want cash from brands more than your ex wanted attention.
Q: Why food volumes declining?A: Small regional flour millers played spoil-sport; one-quarter problem (hopefully).
Q: FY27 ₹10,000 Cr FMCG target still valid?
