India's AWL Agri Business posts profit fall on muted consumer demand

Wilmar International

15/07/2025 10:45

July 15 (Reuters) - India's AWL Agri Business AWLA.NS, previously known as Adani Wilmar, reported a nearly 25% fall in quarterly profit on Tuesday, as higher prices of branded palm oil led consumers to opt for cheaper alternatives.

Indian consumers operating on tight budgets due to slow wage growth have been increasingly shunning large brands in response to price increases.

The consumer goods maker, which makes the Fortune brand of cooking oil, reported a consolidated net profit of 2.36 billion rupees ($27.51 million) for the first quarter ended June 30, according to a regulatory filing.

Sales volumes in its mainstay edible oil business, which accounted for four-fifths of its topline during the quarter, dropped 4% on slow palm oil sales, even as higher prices helped push revenue higher.

Volumes in the segment "remained under pressure, largely due to sluggish palm oil sales driven by its relatively higher prices," AWL Agri Business said in a statement, adding it lost market share during the quarter.

Overall revenue rose 21% to 170.59 billion rupees.

AWL's food business, which sells staples such as rice and pulses, posted a 5% fall in volumes, excluding a one-off impact, as wheat flour sales struggled to maintain margins due to soft demand, stiff local competition and higher prices.

Shares fell 2.2% after the results.

Rival Marico MRCO.NS, which sells the Saffola brand of cooking oil, is yet to report results. It said in an update earlier this month that first-quarter revenue would grow in the low-20s percentage range on improving rural demand.

($1 = 85.7870 Indian rupees)

 (Reporting by Praveen Paramasivam; Editing by Janane Venkatraman)

 ((Ananta.agarwal@thomsonreuters.com;))