Adani Wilmar posts ₹311.02 cr Q2 profit

Adani Wilmar is back in black, registering a consolidated net profit of ₹311.02 crore in the second quarter of this fiscal on the back of strong growth of edible oils and FMCG segments. This marks a significant turnaround from a loss of ₹130.73 crore reported during the same period last year, according to the company’s exchange filing.

Revenue from operations surged 18% year-on-year, reaching ₹14,460.45 crore, compared to ₹12,267.15 crore in the previous year. However, this revenue figure is slightly lower than the ₹14,563.40 crore recorded in the first quarter of this fiscal, where the net profit too stood marginally higher at ₹313.20 crore.

Total income for the quarter increased 18% to ₹14,565.30 crore, up from ₹12,331.20 crore a year ago, while total expenses rose by 13% to ₹14,163.43 crore, compared to ₹12,439.45 crore in the same quarter last year. The increase in expenditures included a rise in the cost of materials consumed, which climbed to ₹12,364.42 crore from ₹10,713.77 crore.

Despite the rising costs, Adani Wilmar reported a profit before tax of ₹401.87 crore, a substantial improvement from the loss of ₹161.76 crore in Q2 FY23.

“In H1’25, we achieved our highest-ever half-year operating EBITDA of ₹1,232 crores and PAT of ₹624 crores. We have been the 2nd and 3rd largest players in Wheat flour and Basmati Rice business respectively,” Angshu Mallick, MD & CEO, Adani Wilmar said in the company’s official press statement.

The company reported a half-year revenue of ₹28,629.03 crore, a 13.6% increase from ₹25,195.23 crore in the same period last year.

EBITDA surged to ₹566 crore, up from ₹144 crore year-on-year, while EBITDA margins improved significantly to 3.9%, compared to 1.2% in the previous year.

The company’s edible oil segment reported the highest revenue growth, increasing 21.5% to ₹10,976.55 crore, up from ₹9,037.53 crore in the year-ago quarter. The food and FMCG segment also saw 34% growth, rising from ₹1,282.61 crore to ₹1,718.17 crore. However, the industry essentials segment experienced a decline of 9.3%, falling from ₹1,947.01 crore to ₹1,765.73 crore during the same period.

The company aims to expand its distribution network to over 50,000 rural towns by FY25, having already reached over 36,000 by the September quarter, up from just over 5,000 in March 2022. In Q2, revenue from alternate channels grew at a strong double-digit rate year-on-year, exceeding ₹3,000 crore over the past 12 months, the company stated in its press release. The e-commerce channel's revenue increased fourfold in four years, and sales of branded packaged oils and foods through the HORECA channel grew over 40% year-on-year, surpassing ₹500 crore in the last 12 months.

Additionally, the company stated that its board approved the formulation of the ‘AWL - Employee Stock Option Scheme 2024’, pending shareholder approval. Under the scheme, up to 1.29 crore stock options (1% of total shares) will be granted to eligible employees and subsidiaries.

Adani Wilmar shares closed at ₹337.50, up 6.05% from yesterday’s close of ₹318.25. The share touched an intraday high of ₹344.65 on the NSE today.