AWL Agri Business Ltd remains on Nuvama Institutional Equities' radar with a 'Buy' rating, even as the brokerage trimmed its target price. The revision comes after the company reported in-line performance for the March quarter, alongside near-term demand headwinds.

Nuvama noted that AWL Agri Business delivered steady growth in the fourth quarter of FY26. "AWL Agri Business's Q4 FY26 revenue/EBITDA expanded 18 per cent YoY/17 per cent YoY, in line with our estimates," the brokerage said.

Operationally, the company saw healthy volume traction led by its core edible oil segment. "Overall volumes expanded 14 per cent YoY versus 8 per cent growth in Q4 FY25, led by strong growth in the edible oil segment (volume/value expanded 17 per cent YoY/19 per cent YoY). Gross margin improved 79bp YoY, whereas EBITDA margin remained flat YoY," Nuvama stated.

However, near-term demand conditions remain somewhat soft. "On the demand front, April stayed soft due to pre-buying in March and temporary disruption due to LPG shortage. However, the company expects demand to normalise May onwards. El Nino remains a risk for rural consumption in H2 FY27," Nuvama added.

Factoring in these trends, the brokerage has lowered its earnings estimates for the coming years. "We are cutting FY27E/28E EPS by 7 per cent/8 per cent, yielding an SotP-based TP (target price) of Rs 340 (earlier Rs 360). At CMP, the stock trades at 19x/16x/13x FY27E/28E/29E PE; maintain 'BUY'," Nuvama also stated.

On the outlook, management remains optimistic about profitability and growth momentum. "Management reiterated EBITDA/ton of Rs 3,500–3,600 going forward. The company expects at least mid-teens volume growth and to remain EBITDA neutral in the Food and FMCG segment in FY27," Nuvama further noted.