Adani Wilmar swings to profit in Q1; shares surge 6%

Adani Wilmar posted a consolidated net profit of ₹313.2 crores in the first quarter of this fiscal, after posting a loss of ₹79 crore in the same quarter last year. Driven by Q1 performance, the company's shares surged over 7% on the NSE today.

AWL shares opened today at ₹328 and reached an intraday high of ₹349.70. The shares closed trade at ₹344.80 up 6.04% on the NSE.

Adani Wilmar, a joint venture between Adani Enterprises and Wilmar International, sells various kinds of edible oils, including mustard, sunflower and soybean, and packaged staple foods under the brand Fortune foods among other products.

As per the company, it registered a total revenue of ₹14,169 crore this quarter, up by 10% from the same quarter last year, aided by the stability in edible oil prices. The profit was primarily driven by reduced expenses including finance costs. The company’s branded export volume registered a yearly growth of 36%.

The edible oils segment accounted for three-fifths of the company’s total volume sales, reporting a 12% year-over-year growth. The company, however, experienced significant growth in the food and FMCG segment, which registered a 42% increase, surpassing sales worth ₹1,533 crore, driven by growth in packaged staple foods.

Adani Wilmar's market share in the Refined Oil Consumer Pack (ROCP) segment rose by 60 bps year-on-year to 19% on a moving annual total (MAT) basis, while the wheat flour segment saw a 90 bps year-on-year increase to 5.9%. In the mustard oil segment, the company introduced specialised packaging such as special mustard oil for pickle enthusiasts and 'Fortune Pehli Dhaar' (First Pressed Kachi Ghani Mustard Oil) prepared from the traditional wooden ‘kolhu’ techniques. The company's sunflower oil has also gained significant market share in South India, bolstered by regional interventions and engagement with health-conscious consume₹through digital platforms for its Fortune Xpert oil.

For the growth of its FMCG segment, the company leveraged its established distribution network for edible oils and strategic bundling and trade schemes. The wheat business maintained a robust growth trajectory despite a slowdown in the packaged atta industry, driven by expanded retail presence and increased repeat purchases, particularly in the South market. The rice business also saw significant growth, with volumes up 89%, supported by promotional events and government-to-government business.

The company’s industrial essentials segment including its bulk consumer essential packs, Lauric & Bakery fats, Castor Oil derivatives, Oleo chemicals and Soya value-added products however, registered a drop in its volumes by 6%, mainly due to a 22% drop in the oil meal business. “While Oleo and Castor oil in the Industry Essential segment experienced strong double-digit volume growth, a decline in the oil meal business impacted the segment’s overall growth,” the press release said.

“The consumer shift to branded staples is benefiting us significantly. In Q1 FY25, we achieved our highest-ever EBITDA of ₹619 crores, a 375% increase YoY and PAT of ₹313 crores,” Angshu Mallick, MD & CEO, Adani Wilmar Limited said.

“With our trusted brand, Fortune, we expect continued market share gains from regional brands. We plan to meet this large demand by enhancing our Food distribution through our edible oil network. In under two yea₹since launching our dedicated HORECA distribution channel, we have surpassed ₹500 crores in revenue on a last twelve-month basis and achieved a 90% YoY volume increase in Q1,” Mallick added.