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Informist, Thursday, Aug. 6, 2026

 

By Gunjan Rajput 

 

NEW DELHI – Brokerages are divided on Grasim Industries Ltd.'s bottom line for the June quarter, with two expecting the company to report a net profit and one forecasting a net loss. Higher realisations in the viscose staple fibre and chemicals businesses are expected to support earnings while continued losses in the paints and business-to-business segments are likely to weigh on the bottom line, according to analysts.

 

Of the three brokerages whose estimates are available with Informist, Motilal Oswal Financial Services Ltd. expects the company to report a net profit of INR 700 million for the June quarter and Kotak Institutional Equities anticipates a net profit of INR 1.30 billion. On the other hand, Nuvama Wealth Management Ltd. expects the company to post a net loss of INR 712 million.

 

If the company reports a net loss for the June quarter, it will remain in the red for the second consecutive quarter. The company posted a net loss of INR 1.18 billion in the year-ago quarter. Continued losses in the paints and business-to-business segments are expected to offset the improvement in operating performance during the quarter, according to Nuvama Wealth Management. The brokerage expects the paints business to continue weighing on earnings despite a sequential reduction in losses.

 

Better realisations in the viscose staple fibre business, improved profitability in chemicals, and lower losses in the paints business are expected to help Grasim return to profit, according to Motilal Oswal Financial Services and Kotak Securities. The recovery in the viscose staple fibre business and improvement in operating margins are also expected to support earnings during the quarter, according to Kotak Securities.

 

The company's revenue is expected to be between INR 118.16 billion and INR 129.12 billion, according to estimates from three brokerages. The highest estimate is from Kotak Securities and the lowest is from Nuvama Wealth Management. The company had posted revenues of INR 92.23 billion in the year-ago quarter.

 

Revenue in the viscose staple fibre business is expected to be supported by volume growth of 5.0-12.7% on year and higher realisations, with Motilal Oswal estimating realisations to rise about 8%. In the chemicals business, volumes are expected to rise 8.0-11.1% on year, while realisations are seen rising around 5%, according to Motilal Oswal. Higher realisations in both businesses are expected to support margins during the quarter.

The company's earnings before interest, tax, depreciation and amortisation are estimated betweeen INR 5.60 billion and INR 8.72 billion, according to the three estimates. The highest estimate is from Kotak Securities and the lowest is from Nuvama Wealth Management. The company had reported an EBITDA of INR 5.28 billion in the year-ago quarter.

Grasim Industries will announce its June quarter earnings Wednesday. Shares of the company ended Thursday at INR 3,220 on the National Stock Exchange, down marginally. The shares are up more than 8% since the company reported its March quarter results. All three brokerage reports on the company available with Informist have a 'buy' recommendation on the stock with an average target price of INR 3,717. This is over 15% higher than the current market price.

The following are the June quarter earnings estimates for Grasim Industries Institute from three brokerages in descending order of the estimate of net profit, in INR million:

 

Brokerage Firm	Net Sales	Net Profit/Loss	EBITDA
Kotak Securities Ltd.	129,119	1301	8,721
Motilal Oswal Financial Services Ltd.	120,300	700	7,900
Nuvama Wealth Management Ltd.	118,155	-712	5,603
Average	122,525	NA	7,408

 

End

 

Edited by Himanshi Gupta

 

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