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Informist, Wednesday, Nov. 5, 2025

 

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--Grasim: Birla Pivot on track to meet INR-85-bln revenue target by FY27
--Grasim: Birla Opus capacity 24% of organised decorative paints industry
--Grasim Birla Opus capex at INR 97.27 bln as on Sept 30
--Grasim Q2 chemicals EBITDA up on better electrochemical unit realisations
--Grasim Q2 chemicals EBITDA up 34% YoY on higher chlorine derivatives volume
--Grasim Jul-Sept chemicals EBITDA INR 3.65 bln vs INR 2.73 bln year ago
--Grasim Jul-Sept chemicals revenue INR 23.99 bln vs INR 20.54 bln year ago
--Grasim: Q2 caustic soda sales volume 294,000 tn vs 295,000 tn year ago
--Grasim: Q2 cellulosic fibre EBITDA down 29% YoY on higher input costs
--Grasim: Spent INR 3.75 bln on capex in Birla Opus in Apr-Sept
--Grasim cellulosic fibre EBITDA INR 3.50 bln vs INR 4.94 bln year ago
--Grasim: Q2 cellulosic fibre sales up 1% YoY on rupee depreciation
--Grasim: Q2 cellulosic fibre sales up 1% YoY on favorable pdt mix
--Grasim cellulosic fibre revenue INR 41.49 bln vs INR 41.25 bln year ago
--Grasim cellulosic staple fibre sales volume 209,000 tn vs 219,000 tn yr ago
--Grasim: Birla Opus continued to gain market share in Jul-Sept
--Grasim net debt INR 68.61 bln as on Sept 30 vs INR 71.53 bln qtr ago
--Grasim spent INR 9.41 bln on capex in H1; plan capex of INR 22.6 bln FY26
--Grasim Jul-Sept EBITDA margin 16% vs 18% year ago
--Grasim Jul-Sept EBITDA INR 17.86 bln vs INR 16.19 bln year ago
--Grasim: MD Himanshu Kapania to oversee paints ops till new CEO is named
--Grasim: Birla Opus CEO Hargave resigned to pursue opportunities outside co
--Grasim: Birla Opus Paints CEO Rakshit Hargave resigned
--Grasim Jul-Sept operating margin 4.06% vs 4.52% year ago
--Grasim Apr-Sept revenue INR 188.33 bln vs INR 145.17 bln year ago
--Grasim Apr-Sept net profit INR 6.86 bln vs INR 6.69 bln year ago
--Grasim Jul-Sept revenue INR 96.10 bln vs INR 76.23 bln year ago
--Grasim Jul-Sept net profit INR 8.05 bln vs INR 7.21 bln year ago
--Analysts saw Grasim Jul-Sept revenue at INR 93.37 bln
--Grasim Jul-Sept revenue INR 96.10 bln
--Analysts saw Grasim Jul-Sept net profit at INR 7.93 bln
--Grasim Jul-Sept net profit INR 8.05 bln

 

By Narayana Krishna

 

HYDERABAD – Despite pricing pressure in the fibre business, improvement in margins in the chemicals business and increased market share in the paints segment helped Grasim Industries Ltd. beat analysts' estimates for the September quarter. The company Wednesday reported a 11.6% on-year growth in September quarter net profit to INR 8.05 billion. The company's revenue for the quarter rose 26% on year to INR 96.1 billion. Analysts had projected Grasim's net profit at INR 7.93 billion and revenue at INR 93.37 billion.

 

The Aditya Birla group company's standalone operations include the manufacture of viscose staple fibre and chemicals. These two segments account for nearly 65% of the company's total revenue. The new business segments, Birla Opus paints and e-commerce operations, contribute nearly 35% to the revenue.

 

Revenue of the company's cellulosic stable fibre segment rose 1% on year to INR 41.49 billion, despite volume declining to 209,000 tonnes in the September quarter from 219,000 tonnes a year ago. Despite pricing pressure due to inventory issues in China, strong domestic prices for the fibre helped the company to report revenue growth in this segment. A favorable product mix and rupee depreciation also helped the company to maintain the sales growth in its core fibre operations for the quarter, Grasim said in a press release. 

 

The earnings before interest, tax, depreciation, and amortisation of the fibre segment declined by 29% on year to INR 3.50 billion. Grasim's chemicals business, comprising of alkali, chlorine derivatives and specialty chemicals, showed improvement in realisations in the September quarter, as raw material prices declined. In the global market, spot prices of caustic soda in the September quarter were $449 per tonne, down 5% on year.

 

Domestic realisations of caustic soda were higher due to stable domestic demand and depreciation of the rupee against the dollar, Grasim said. Realisations stood at INR 32,979 per tonne, up 8% on year. Sales volume of caustic soda was flattish year on year at 294,000 tonnes due to lower production, which was constrained by availability of power.

 

Sales volume of specialty chemicals was up 34% on year supported by stable utilisation levels at new electrochemical plant. However, higher input prices continue to impact profitability in specialty chemicals business, Grasim said. Overall, revenue of the chemicals business was INR 23.99 billion, up 17% from a year ago. The segment's EBITDA surged 34% on year to INR 3.65 billion driven by higher volumes of chlorine derivatives and better realisations, Grasim said.

 

Aditya Birla group's new venture Birla Opus Paints business is gaining market share across cities. The company's total paints manufacturing capacity was 24% of the organised decorative paints industry because of its six green field plants, Grasim said. The company has not provided the revenue for the paints business.

 

Grasim spent INR 3.75 billion capital expenditure on paints business during the six months ended September. As on Sept. 30, the company's total capital expenditure on Birla Opus was INR 97.27 billion. The company announced the resignation of Birla Opus Chief Executive Officer Rakshit Hargave on Wednesday.

 

Grasim said its e-commerce business Birla Pivot is on track to meet the revenue target of INR 85 billion by 2026-27 (Apr-Mar). The company said Birla Pivot registered 15% quarter-on-quarter revenue growth, without revealing the revenue.

 

The company's operating margin for the quarter under review declined to 4.06% from 4.52% a year ago. EBITDA margin for the quarter declined by 200 basis points on year to 16%, while EBITDA for the quarter stood at INR 17.86 billion. The company's total expenses for the quarter rose 26.5% on year to INR 99.5 billion. Other expenses were up 3.6% on year at INR 14.5 billion and finance cost rose nearly 26% on year to INR 2 billion. Input costs rose 11% on year to INR 41.7 billion.

 

Grasim's capital expenditure during Apr-Sept was INR 9.41 billion. The company plans capital expenditure of INR 22.6 billion for the financial year 2025-26 (Apr-Mar). Grasim's net debt as on Sept. 30 was INR 68.61 billion against INR 71.53 billion a quarter ago.

 

Grasim's net profit for Apr-Sept rose 2.6% on year to INR 6.86 billion and revenue for the period rose nearly 30% on year to INR 188.33 billion. On Tuesday, shares of the company ended at INR 2,882 on the National Stock Exchange, down 0.6% from its previous close.  End

 

Edited by Ashish Shirke

 

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