AWL Agri Business Ltd Management Discussions

Global Economic Environment

The global economy remained resilient during FY26 despite continuing geopolitical uncertainties, supply chain disruptions and volatility across commodity and financial markets. While inflationary pressures moderated across several major economies, growth remained uneven amid evolving trade dynamics, fluctuating energy prices and shifting monetary policy environments. Against this backdrop, global food consumption continued to demonstrate structural resilience, supported by population growth, urbanisation and increasing consumer preference for trusted and value-added food products. Companies with diversified sourcing networks, integrated operations and strong risk management capabilities remained better positioned to navigate market volatility and capitalise on emerging opportunities.

India Economic and Consumption Landscape

India continues to be one of the fastest-growing major economies globally and is increasingly emerging as a leading consumption and investment destination. With nominal GDP projected to reach approximately US$ 8.9 trillion and per capita GDP expected to cross US$ 5,000 over the next decade, the country is witnessing a structural shift from need-based consumption towards aspirational and lifestyle-led spending. Per capita spending on packaged foods has increased from approximately 4,800 in 2020 to 7,600 in 2025, and is expected to continue growing steadily over the coming years.

Several structural factors, including rising household incomes, rapid urbanisation, increasing participation of women in the workforce, nuclearisation of families and a young digital-native population, continue to reshape consumption patterns. The growing preference for convenience, health and quality, coupled with increasing adoption of organised retail, e-commerce and quick commerce, is accelerating the shift towards branded and packaged staples. At the same time, the rapid expansion of upper-middle- class and affluent households is driving premiumisation across food categories, creating significant long-term opportunities for trusted brands and organised food companies.

Overview

FY26 marked another year of strategic progress for AWL Agri Business Limited ("AWL" or "the Company") as it continued to strengthen its position as one of Indias largest Food & FMCG platforms.

The year was characterised by broad-based growth across businesses, continued expansion of distribution reach, accelerating alternate channels, strengthening branded exports and improving profitability in the Food & FMCG segment. The Company continued to leverage its integrated business model, diversified portfolio and the strength of the Fortune brand, which today reaches millions of households across India.

During FY26, AWL reported Revenue from Operations of 74,731 crore, representing growth of 17% over the previous year. The Company delivered resilient operating performance despite a dynamic commodity environment, supported by disciplined execution, supply chain efficiencies and strong market presence across categories.

While edible oil remains the foundation of the business, AWL continues to strategically expand its presence across packaged foods, health and convenience products and adjacent consumption categories. The Companys long-term strategy remains centred around leveraging its leadership in edible oils to build one of Indias most trusted and scalable food platforms.

Industry Overview

India?s Large and Expanding Packaged Staples Opportunity

India remains one of the worlds most attractive food consumption markets, supported by favourable demographics, rising disposable incomes, increasing urbanisation and growing consumer preference for branded and packaged products.

The Companys core categories collectively represent a significant market opportunity across everyday kitchen staples and food products.

Category	Estimated Market Size in FY25	Branded Penetration %
Edible Oils	> Rs.2.8 lakh crore	> 75%
Rice	> Rs.2.4 lakh crore	12%
Pulses	> Rs.2.2 lakh crore	6%
Wheat Flour	> Rs.1.5 lakh crore	8%
Sugar	> Rs.58,000 crore	10%
Besan & Adjacent Staples	> Rs.40,000 crore	6%
Total TAM	> Rs.9.8 Lakh crore

Source: Report on Staples Market in India May 2026 by The Knowledge Company

As consumers increasingly seek quality, consistency and convenience, companies with strong brands, integrated supply chains and extensive distribution capabilities are expected to benefit from the ongoing formalisation of food categories.

AWLs Strategic Positioning Evolving Beyond Edible Oils

Over the past decade, AWL has evolved from a leading edible oils company into a diversified Food & FMCG platform.

Today, the Company operates across multiple food categories through a portfolio of trusted brands led by Fortune. Its integrated business model combines global sourcing capabilities, extensive manufacturing infrastructure, pan- India distribution reach, deep rural penetration, strong retailer relationships and robust risk management capabilities.

The Company continues to leverage its leadership position in edible oils to accelerate growth across packaged foods and adjacent categories. This integrated model enables AWL to efficiently introduce new products, improve supply chain economics and scale emerging businesses.

The Fortune brand today serves as a powerful platform across multiple food categories and remains one of the most trusted names in Indian kitchens.

AWL delivered another year of strong growth, with revenue from operations increasing 17% year-on-year to 74,731 crore. Growth was supported by broad-based performance across business segments, continued expansion of distribution reach, strong momentum in alternate channels and increasing contribution from food and value-added categories.

Operational EBITDA stood at 2,343 crore, reflecting the impact of commodity price movements and business mix during the year. The Company remained focussed on driving operating efficiencies, improving portfolio quality and strengthening profitability across growth businesses. Profit After Tax stood at 1,045 crore, while Operating Cash Flow increased significantly to 3,928 crore, demonstrating strong cash conversion, disciplined working capital management and the resilience of the integrated business model.

Growth was supported by broad-based performance across business segments, continued expansion of distribution reach, strong momentum in alternate channels and increasing contribution from food and value-added categories.

Segment Review Edible Oils

Strengthening Market Leadership

The edible oil business continued to reinforce its leadership position during FY26, supported by strong market execution, distribution expansion and a diversified portfolio across key oil categories. The business delivered volume growth of 6% year- on-year, with volumes increasing from 4.0 MMT to 4.3 MMT, while revenue grew 20% to 59,788 crore.

AWL maintained its leadership position in the branded edible oils market with a market share of 18.1% (Nielsen ROCP MAT March 2026). The business continued to benefit from the Companys integrated sourcing capabilities, refining infrastructure, risk management framework and extensive distribution network.

The Company also continued to strengthen its premium portfolio through the Fortune Premio range, including the launch of specialty oils such as Olive Oil and Cold-Pressed Mustard Oil. These initiatives support AWLs strategy of driving premiumization and enhancing its presence in higher- value segments.

Particulars (Rs. Crore)	FY25	FY26
Volume - in MMT	4.0	4.3
Revenue	49,736	59,788
Segment Results	1,562	1,063

Food & FMCG

Building a Scaled Food Franchise

Food & FMCG remains a key strategic growth pillar for AWL. During FY26, the business continued to strengthen its presence across packaged staples and everyday food categories, supported by expanding distribution, improving market penetration and growing consumer preference for trusted brands. Revenue increased to 6,473 crore, while segment results improved significantly to 212 crore, reflecting the benefits of scale, portfolio mix improvement and operating leverage.

Growth during the year was supported by strong momentum in branded rice, continued expansion in wheat flour and increasing contribution from adjacent food categories. The Company continued to gain scale in its packaged staples portfolio while strengthening its position across rice, atta, besan, pulses, poha, soya products and other everyday food categories.

Branded rice remained a key growth driver, supported by aggressive distribution expansion, portfolio strengthening and increasing consumer acceptance. Wheat flour continued to maintain scale and strengthen market presence, while nonrice and non-wheat categories delivered encouraging growth driven by deeper market penetration and focused category development initiatives.

The Company remains focussed on strengthening its position across staples while expanding its presence in higher-growth and higher-value segments. As scale continues to improve across categories, AWL is well positioned to further enhance the quality of earnings and strengthen the long-term profitability profile of its Food & FMCG business.

Particulars (Rs. Crore)	FY25	FY26
Volume - in MMT	1.30	1.24
Revenue	6,273	6,473
Segment Results	13	212

Industry Essentials remains an important component of AWLs diversified business portfolio, providing exposure to industrial and export-oriented product categories while leveraging the Companys integrated manufacturing and sourcing capabilities.

During FY26, the segment delivered healthy growth in both volumes and profitability, supported by increasing contribution from value-added products, improving operating efficiencies and expansion across key customer segments.

The segment recorded volume growth of 7% during the year, while revenue increased by 11% to 8,470 crore. Segment results improved significantly to 352 crore, reflecting a favourable product mix and stronger contribution from higher- value offerings.

AWL continues to focus on expanding its presence in value- added oleochemicals and specialty products, supported by investments in manufacturing capabilities and the acquisition of Omkar Chemicals. The business also benefits from strong export linkages, enabling the Company to participate in global demand opportunities while diversifying its earnings profile.

<tr>

Particulars (Rs. Crore)	FY25	FY26
Volume - in MMT	1.26	1.35
Revenue	7,663	8,470
Segment Results	239	352

Subsidiaries and Emerging Growth Platforms GD Foods

GD Foods, which operates in the sauces and condiments category, continued to deliver strong growth momentum during FY26. The business reported a double-digit revenue growth during the year, supported by distribution expansion, improving brand visibility and increasing leverage of AWLs distribution infrastructure.

The Company remains focussed on accelerating market penetration and expanding the reach of the Tops portfolio across geographies and channels.

Omkar Chemicals

Omkar Chemicals, acquired by AWL in 2024, operates in the value-added oleochemicals segment and complements the Companys Industry Essentials portfolio.

The business delivered strong operational performance during FY26, with annual volumes doubling over the previous year and revenues crossing 300 crore. Omkar further strengthens AWLs presence in specialty and value-added oleochemical products while creating opportunities for expansion across industrial and export markets.

New Product Development

Innovation remains an important pillar of AWLs growth strategy as the Company continues to strengthen its portfolio across health, premium and convenience-oriented categories.

During FY26, the Company expanded its premium edible oils portfolio under the Fortune Premio range through the launch of a curated range of specialty oils. New launches included three variants of Olive Oil and Cold-Pressed Mustard Oil, catering to consumers seeking premium and health-focussed cooking solutions.

The Company also continued to strengthen its health and convenience portfolio comprising products such as multigrain atta, ready-to-cook offerings, nutrition-focussed products and other emerging food categories.

AWL remains focussed on leveraging consumer insights, category adjacencies and the strength of the Fortune brand to drive future innovation across food and FMCG categories.

Health & Convenience Portfolio

The Company continued to expand its Health & Convenience portfolio, which crossed 1,300 crore during FY26. Spanning products such as multigrain atta, brown rice, premium and functional edible oils, ready-to-cook offerings and nutrition- focussed products, the portfolio is well aligned with evolving consumer trends around health, wellness and convenience. These categories not only represent attractive growth opportunities but also support premiumisation and portfolio diversification within the Food & FMCG business.

Distribution and Route-to-Market Strength Building One of Indias Largest Food Distribution Networks

AWLs extensive distribution network remains one of its strongest competitive advantages and a key enabler of its multi-category food strategy.

During FY26, the Company continued to expand and strengthen its route-to-market capabilities, improving both scale and execution across categories.

Direct retail reach expanded by approximately 13% during the year, with the addition of over one lakh outlets. The Company also crossed the milestone of 60,000 rural towns, further strengthening its presence in underpenetrated markets and creating a strong foundation for future growth.

AWL continued to focus on improving throughput, outlet productivity, route optimisation and sales effectiveness across markets.

Metric	FY26
Retail Reach	• Total Reach: 2.6 Million
	• Direct Reach: 9,65,000+ outlets
Distributors	10,000+
Rural Town Coverage	60,000+

Direct retail reach expanded by approximately 13% during the year, with the addition of over one lakh outlets. The Company also crossed the milestone of 60,000 rural towns, further strengthening its presence in underpenetrated markets and creating a strong foundation for future growth.

Brand Building and Consumer Engagement Strengthening Consumer Connect

AWL continued to invest in strengthening brand equity and consumer engagement across its portfolio during FY26.

The Company stepped up marketing intensity during the year with a combination of national and regional campaigns designed to improve brand saliency across markets and consumer segments.

Key campaigns launched during the year included:

A refreshed pan-India television campaign featuring Akshay Kumar

Region-specific campaigns for Eastern India highlighting the dual-oil consumption pattern of Soyabean Oil and Mustard Oil

A dedicated South India campaign focussed on lower oil absorption benefits

Targeted campaigns across select Central Indian states aimed at strengthening performance in underpenetrated markets

The “Pakko Gujarati” campaign for Fortune Cottonlite featuring leading Gujarati personalities

These initiatives were complemented by extensive ATL and BTL activations across markets, festive-led campaigns, retailer engagement programs, digital activation and consumer outreach initiatives aimed at driving awareness, trial and offtake across channels.

The Companys marketing investments increasingly support the transition of Fortune from a category-leading edible oils brand to a broader food platform spanning multiple everyday consumption categories.

Capturing Emerging Consumption Trends

Alternate channels emerged as a key growth driver during the year, supported by strong category positions, improved digital execution and focused consumer engagement initiatives. These channels continue to play an increasingly important role in driving consumer acquisition, premiumisation and category development, particularly across food and FMCG categories.

The HoReCa business continued to expand its customer base and geographic reach, supported by deeper market penetration and an expanding product portfolio tailored to institutional and food service customers.

Branded exports also gained strong momentum during FY26, with revenue exceeding 450 crore and products reaching more than 35 countries. The Companys global sourcing capabilities, strong product portfolio and access to the Wilmar network continue to support the expansion of its international business and strengthen AWLs presence across key overseas markets.

These channels are expected to remain important growth drivers as AWL continues to strengthen its presence across emerging consumption occasions and evolving consumer purchase journeys.

Channel	FY26 Revenue	YoY Growth %
Alternate Channel	Rs.5,200 crore+	47%
HoReCa	Rs.750 crore+	44%
Branded Exports	Rs.450 crore+	71%

Operational Excellence and Supply Chain

The Companys integrated business model remains a key differentiator. The integrated business model remains a key competitive advantage, enabling the Company to efficiently manage sourcing, manufacturing, logistics and distribution across its diverse portfolio.

The Company benefits from a strategically located manufacturing network, port-based refining infrastructure, extensive warehousing capabilities and a nationwide distribution ecosystem. This integrated platform allows AWL to optimise procurement, improve supply chain responsiveness and efficiently serve consumers across urban and rural markets.

During FY26, the Company continued to focus on manufacturing efficiencies, supply chain optimisation, distribution productivity and working capital management. Investments in technology, planning systems and logistics optimisation further enhanced service levels and operational effectiveness.

Risk Management

AWL operates in a dynamic business environment influenced by commodity price movements, global supply chains, foreign exchange fluctuations, evolving consumer preferences and regulatory developments. The Companys integrated business model, diversified portfolio, extensive sourcing network and disciplined risk management framework enable it to effectively identify, assess and mitigate key business risks.

Key Risk	Mitigation Approach
1 Commodity Price Volatility	Structured hedging framework, diversified sourcing and integrated operations
2 Supply Chain Disruptions	Extensive sourcing network, inventory planning and logistics capabilities
3 Foreign Exchange Risk	Active hedging and continuous monitoring of exposures
4 Competitive Intensity	Brand investments, innovation and distribution expansion
5 Regulatory Changes	Robust governance, compliance systems and regular monitoring
6 Product Quality & Food Safety	Comprehensive quality assurance and food safety protocols

Capital Allocation

AWL remains committed to a disciplined capital allocation framework focused on balancing growth investments, strategic expansion opportunities and shareholder returns.

Capital deployment during the year remained focussed on strengthening manufacturing and supply chain capabilities, expanding the Food & FMCG portfolio, enhancing distribution reach and pursuing value-accretive acquisitions. Recent investments, including GD Foods and Omkar Chemicals, are aligned with the Companys strategy of building a diversified food and value-added products platform.

The Companys strong operating cash flow generation of 3,928 crore during FY26 provides financial flexibility to support future growth initiatives while maintaining a prudent balance sheet.

In recognition of the Companys performance and confidence in its long-term growth prospects, the Board recommended a dividend of 1 per equity share for FY26, marking an important milestone in AWLs evolution and commitment to creating sustainable shareholder value.

Awards & Recognition

The Companys continued focus on brand building, innovation, consumer engagement and social impact was recognised through several prestigious industry awards during FY26.

Key recognitions received during the year included:

Fortune Chakki Fresh Attas “Roti Ki Mehnat" campaign being recognised as the Most Versatile Brand of the Year at the India Influencer Conclave 2025

Multiple honours for Fortunes integrated marketing campaigns at the ET Brand Equity Kaleido Awards, ET Brand Disruption Awards and ET Shark Awards across categories including public relations, digital engagement and content marketing

Recognition for Kohinoor Rices “Qisse Kuchh Khaas" campaign at the Impact Digital Influencer Awards and ET Media & Entertainment Awards for excellence in brand storytelling and content marketing

Awards for Fortune SuPoshans social impact initiatives, including recognition at the Exceed Awards, ET Media & Entertainment Awards and E4M Indian Content Marketing Awards

AWL Agri Business being recognised as one of the “Icons of Indias AgriFood System" by ET Edge at the AgriFood Systems Summit 2026