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Informist, Tuesday, May 19, 2026

By Ruchira Kagita

MUMBAI - Grasim Industries Ltd.'s earnings for the March quarter may be subdued as volumes are likely to see a dip and margins of its paints and chemical businesses are likely to be weak. The company's paint business 'top line growth is however baked in to be healthy', according to analysts. Grasim Industries' overall net loss is expected to narrow in the quarter. 

Informist's calculations suggest that for the quarter ended March, Grasim Industries' net loss is expected to contract to INR 1.42 billion from INR 2.88 billion in the corresponding period a year ago, and its revenue from operations will likely increase almost 19% to INR 106.16 billion on a standalone basis.

The lowest estimate for the Grasim Industries' net loss for the March quarter was by Kotak Securities Ltd. at INR 501 million and the highest was by ICICI Securities at INR 1.8 billion.

The company's earnings before interest, taxes, depreciation, and amortisation for the three months ended March are seen at INR 4.52 billion, up marginally on year but down almost 23% sequentially. Kotak Securities pegged the company's EBITDA in the reporting quarter at INR 5.20 billion.

Grasim Industries' margin growth in the chemicals segment may be weak in the quarter under review, according to brokerages. Margins are likely to dip for the segment due to lower realisations and high power costs, Kotak Securities said in its research report. The company's chemicals business' volume growth is expected to be stable in the three months ended March, according to Kotak Securities.

Grasim Industries' chemicals business had posted a weak performance in the December quarter due to lower profitability in specialty chemicals and lower realisations in its electrochemical units, the company had said in its earnings presentation. The company had planned to expand its capacity at its Vilayat unit in Gujarat for its chemicals business. Progress on this expansion in the reporting quarter will be important to note.

For its paints business, Grasim Industries' had said that it increased its market share in the decorative paints segment by 300 basis points on year in the December quarter, and that its volumes in the same period rose 70%. The top brass of the company had projected a similar uptick in market share for the March quarter as well.

The brand may post revenue in excess of INR 12 billion-INR 13 billion in the March quarter, according to ICICI Securities Ltd. However, an EBITDA margin loss is likely for the paints division as it focuses on scaling up, Kotak Securities said.

Investors will keep an eye on the company's plan to increase its market share in the paints sector and sustaining volumes, given particularly the impact the sector has suffered due to the West Asia war. They will also await commentary on the potential for further price hikes which are seen supporting the company's sales and its aim to bridge the gap between itself and the market leader Asian Paints.

The company's cellulosic fibres segment is seen posting steady figures for the quarter ended March. Better realisations will most likely support the margin for its viscose staples fibres business, Kotak Securities said, while Motilal Oswal Financial Services Ltd. expects the segment's volumes to increase around 5% on year.

For 2025-26 (Apr-Mar), Motilal Oswal estimates the company's sales to grow to INR 396 billion, up 25%. The brokerage expects Grasim Industries' sales to see a compounded annual growth rate of 20% between FY25 and FY27.

Of the three brokerage reports available with Informist, two have a "buy" call on the Aditya Birla Group company, and one has a "hold" stance.

The company will announce its financial results for Jan-Mar and FY26 on Wednesday. At 1237 IST, shares of Grasim traded 0.2% higher at INR 2,949.20 on the National Stock Exchange. Since the company reported its earnings for the December quarter on Feb. 10, the stock has risen almost 1%.

Following are the estimates for the company's March quarter earnings in INR billion from four brokerages in ascending order of net profit:

End

Edited by Akul Nishant Akhoury

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