Agarwal Industrial Corporation’s Q1 FY26 hit by geopolitical issues, early monsoon

Agarwal Industrial Corporation Limited experienced a challenging Q1 FY26, with revenue from operations decreasing by 16.1% year-on-year to ₹594 crores. EBITDA stood at ₹38 crores, with a 6.4% margin, while net profit for the quarter was ₹13 crores. Bitumen volumes reached 1,24,600 MT, below anticipated levels, though the segment remained the largest contributor with ₹496 crores in revenue. The shipping segment contributed ₹72 crores, or 12.1% of total revenue.

The company cited geopolitical disruptions, particularly between India-Pakistan and in the Middle East, causing trade flow disruptions and nearly a month of shipping impact. An early onset of the monsoon season further softened bitumen demand due to slowed construction activities. Despite these headwinds, the company maintains its full-year volume guidance of around 6 lakh tons for FY26, a 10% growth from the previous year.

Post-Q1 FY26, Agarwal Industrial announced the acquisition of 100% equity in Konkan Storage Systems Private Limited for over ₹30 crores. This acquisition aims to strengthen logistics and infrastructure capabilities, with Konkan Storage Systems offering over 24,000 tons of existing capacity for solid, liquid, and gaseous materials, helping save on rental expenses in Karwar and Mangalore.