Buy AWL Agri Business; target of Rs 350: ICICI Securities

BUY

ICICI Securities's research report on AWL Agri Business

A sequential recovery was visible in AWL’s performance in Q2FY26, with Foods profitability sustaining its strong momentum while edible oils’ growth remained largely price-led amid subdued consumption trends. QC volumes surged 86% YoY, and branded Foods sustained DD growth with basmati rice up 30% YoY, indicating early signs of demand normalisation. With 0.9mn retail outlets and expanding rural reach, execution depth continues to strengthen. We view AWL’s position as improving, with portfolio diversification, scaling alternate channels, and normalising oil spreads providing visibility for volume led recovery through H2FY26, though margins are likely to remain range bound in the near term. Maintain BUY with an SoTP based unchanged target price of INR 350.

Outlook

Our earnings estimates are largely unchanged for FY26–27E; modelling revenue/PAT CAGRs of 8%/1% over FY25-28E. Maintain BUY with an SoTP-based unchanged target price of INR 350.

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