AWL - Adani Wilmar

📊 NSE: AWL 🏢 Solvent Extraction 📅 Last Updated: 12/13/2025 17:51

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 24% YoY to INR 63,672 Cr in FY25. Edible Oil revenue grew 28% to INR 49,736 Cr; Food and FMCG revenue surged 26% to INR 6,273 Cr; Industry Essentials revenue grew 2% to INR 7,663 Cr.

Geographic Revenue Split

Domestic operations contribute the vast majority of revenue through 10,000+ distributors and 2.1 million retail outlets. International presence includes a Bangladesh subsidiary which reported a net loss of INR 57 Cr in FY25, an improvement from INR 111 Cr loss in FY24.

Profitability Margins

Gross profitability is sensitive to import duties and commodity prices. PBILDT margin improved to 3.90% in FY25 from 2.22% in FY24, driven by inventory gains from a September 2024 custom duty hike and improved sales realizations in H2FY25.

EBITDA Margin

PBILDT margin stood at 3.90% in FY25. Core profitability improved due to a 9% increase in total sales volume and better alignment of hedges, leading to significant improvement in PBILDT per Metric Tonne.

Capital Expenditure

Incurred INR 995 Cr in FY25 (funded by INR 734 Cr IPO proceeds and INR 170 Cr debt). Planned capex of INR 2,000 Cr to INR 2,400 Cr for FY26 and FY27 for greenfield oleo business and refining expansion.

Credit Rating & Borrowing

Long-term bank facilities of INR 1,230 Cr rated CARE AA-; Stable. Short-term facilities and Commercial Paper rated CARE A1+. Borrowing costs are competitive due to strong parentage and a capital base of INR 9,359 Cr.

⚙️ Operational Drivers

Raw Materials

Crude edible oils (Palm, Soya, Sunflower) represent the bulk of input costs. Other materials include Wheat, Paddy (Rice), Mustard seeds, and chemicals for the Oleo business.

Import Sources

Imports are sourced from Indonesia and Malaysia (Palm oil), Argentina and Brazil (Soya oil), and Ukraine and Russia (Sunflower oil).

Key Suppliers

Wilmar International Limited (WIL) provides global procurement linkages and real-time price information. Other suppliers include regional agricultural producers for wheat and rice.

Capacity Expansion

Current refining capacity is 18,310 TPD and crushing capacity is 7,775 TPD. Expansion includes a new castor derivative plant and increased refining capacity at the Hazira plant by FY27.

Raw Material Costs

Raw material costs are highly volatile; inventory gains occurred in FY25 due to higher import duties. Procurement is managed through a defined hedging system with stop-loss limits set by a risk committee.

Manufacturing Efficiency

Operates 24 owned plants and 52 third-party units. Integrated manufacturing and proximity to consumption centers provide logistical advantages and higher operating efficiencies.

Logistics & Distribution

Distribution is a core strength with 10,000+ distributors. Leveraging AWL's existing network for acquired brands (like Tops) reduces incremental distribution costs.

📈 Strategic Growth

Expected Growth Rate

26%

Growth Strategy

Scaling Food & FMCG to reach INR 10,000 Cr TOI through regional customization, expansion in Q-commerce, and leveraging the 'Fortune' brand. Growth is supported by the acquisition of GD Foods (Tops brand) and expansion into oleochemicals.

Products & Services

Edible oils (Soybean, Palm, Mustard, Rice Bran), Wheat Flour (Atta), Basmati Rice, Besan, Sauces, Jams, Soap noodles, Glycerine, and Castor oil derivatives.

Brand Portfolio

Fortune, Tops, Raag, Bullet, Fryola, Kings.

New Products/Services

Expansion of the 'Tops' product line (sauces/jams) and new oleochemical products. Food & FMCG segment volume grew 26% YoY, indicating high consumer acceptance of new SKUs.

Market Expansion

Targeting rural penetration in 50,000+ towns and aggressive digital commerce strategies. Expanding the oleochemical business through a new greenfield plant.

Market Share & Ranking

Market leader in domestic edible oils (Fortune brand). Ranks among top 3 in Basmati rice and Wheat flour. Market share in Soybean oil increased by 10 bps in FY25.

Strategic Alliances

Joint venture with Wilmar International (Singapore), which holds a 63.94% stake. Strategic acquisition of GD Foods (Tops) and OCIPL to bolster the FMCG portfolio.

🌍 External Factors

Industry Trends

Shift toward branded packaged staples (9% total volume growth for AWL). Rapid growth in Q-commerce and digital platforms, where AWL's alternate channels grew 35% in Q2FY26.

Competitive Landscape

Faces competition from large FMCG players in the food segment and regional refiners in the edible oil segment. Competitive edge is maintained through integrated manufacturing.

Competitive Moat

Moat consists of the 'Fortune' brand equity, the largest edible oil refinery in India (Mundra), and global procurement synergies with Wilmar. These are sustainable due to high entry barriers in large-scale port-based refining.

Macro Economic Sensitivity

Highly sensitive to global edible oil price cycles and domestic inflation. Demand for premium food options is rising with increasing consumer health-consciousness.

Consumer Behavior

Increasing preference for health-oriented, convenient, and premium branded food options over loose/unbranded products.

Geopolitical Risks

Conflict in Ukraine and Russia impacts sunflower oil supply chains. Indonesia's B35/B40 biodiesel blending mandates affect global palm oil availability and pricing.

⚖️ Regulatory & Governance

Industry Regulations

Subject to FSSAI standards and government import duty structures. The differential between crude and refined oil duties is a key determinant of refining margins.

Environmental Compliance

Invested in green manufacturing and solar power (3.2 MW). Adheres to Wilmar’s 'No Deforestation, No Peat, No Exploitation' (NDPE) policy.

Taxation Policy Impact

GST 2.0 implementation saw tax on GD Foods products drop from 18% to 5%, which is expected to drive double-digit volume growth in H2FY26.

⚠️ Risk Analysis

Key Uncertainties

Volatility in international CPO (Crude Palm Oil) prices and domestic agro-climatic conditions affecting crop yields for mustard and soya.

Geographic Concentration Risk

High concentration in India; however, manufacturing is diversified across 10 states. Bangladesh subsidiary provides some international exposure but remains a small portion of the business.