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Informist, Wednesday, Aug. 12, 2026

 

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--Grasim Industries Apr-Jun net profit INR 2.47 bln
--Grasim Industries Apr-Jun revenue INR 117.95 bln
--Grasim Apr-Jun net profit INR 2.47 bln vs loss INR 1.18 bln yr ago
--Grasim Apr-Jun revenue INR 117.95 bln vs INR 92.23 bln year ago
--Grasim Apr-Jun operating margin 8.31% vs 4.41% year ago
--Grasim Apr-Jun EBITDA INR 10.94 bln, up 107% on year
--Grasim spent INR 3.75 bln on capex Q1; target capex of INR 31.6 bln in FY27
--Grasim Apr-Jun paints ops revneue INR 16.61 bln, up 64% on year
--Grasim Q1 cellulosic staple fibre sales volume 202,000 tn, down 4% on yr
--Grasim Q1 cellulosic fibre segment revenue INR 45.30 bln, up 12% on yr
--Grasim Q1 cellulosic fibre EBITDA INR 6.32 bln, up nearly 2 times on yr
--Grasim Q1 caustic soda sales volume 284,000 tn, down 6% on year
--Grasim Apr-Jun chemicals revenue INR 26.40 bln, up 10% on year
--Grasim Apr-Jun chemicals EBITDA INR 4.91 bln, up 16% on year
--Grasim: Birla Opus revenue market share up 30 bps QoQ in Apr-Jun
--Grasim: Cellulosic staple fibre volumes down YoY in Q1 on lower production
--Grasim: Cellulosic staple fibre volumes dn Q1 on subdued downstream demand
--Grasim: Raised product prices in paints, specialty chemicals businesses Q1
--Grasim specialty fibre volume mix improved to 27% Q1 vs 21% year ago
 

 

By Rajesh Gajra

 

MUMBAI – Grasim Industries Ltd. was in the black in the June quarter after two consecutive quarters of net loss, on the back of steady revenue growth and relatively soft input and operating costs on a year-on-year basis. The revenue growth was, however, lower than the previous two quarters. The company, a part of the Aditya Birla group, manufactures chemicals and semi-synthetic cellulosic fibres and yarns in its standalone operations.

 

The company reported a net profit of INR 2.47 billion for the June quarter, as against a net loss of INR 1.18 billion in the year-ago quarter. It was the fifth time in the last 12 quarters that Grasim reported a net profit, amid pressure on the bottom line from investments in its paints and business-to-business segments. Grasim's revenue from operations rose 28% on year to INR 117.95 billion in the June quarter.

 

The revenue growth was across the company's major two segments of chemicals, and cellulosic fibre, and exceptionally strong in two other key segments of business-to-business e-commerce, and paints.

 

The cellulosic fibres segment revenue was up 12% on year at INR 45.30 billion in the June quarter, helped mainly by a surge in selling prices in the cellulosic fibres segment, which offset weak volumes.

 

In a post-earnings release, the company said the revenue growth in this segment was "led by improved global prices, rupee depreciation and favorable product mix." The cellulosic staple fibre sales volume was down 4% on year at 202,000 tonnes. The company said this was due to "subdued domestic demand" and "lower production on account of planned maintenance."

 

In the chemicals segment, Grasim reported revenue growth of 10% on year at INR 26.40 billion for the June quarter. The company said this growth was on the back of higher domestic caustic soda realisations due to recovery in international caustic soda spot prices for the second quarter in a row, and rupee depreciation. The segment's chlorine realisations, however, fell "due to lower demand from end-user industries," as per the company.

 

There was a substantial rise of 75% on year in revenue from the company's B2B e-commerce business at INR 25.48 billion. The company said this segment's growth on a year-on-year basis was mainly on account of strong B2B digital adoption of the company's platform for its building materials products.

 

The paints business of Grasim recorded revenue growth of 64% on year at INR 16.61 billion in the June quarter. The company said this was supported by dealer on-boarding and "a wider acceptance of Birla Opus (the paints brand of the company) across markets." 

 

The paints and B2B e-commerce segments of Grasim, however, did not help the overall earnings before interest, tax, and depreciation growth of 107% on year at INR 10.94 billion. The company, which did not disclose the EBITDA details of the paints and B2B e-commerce segments, said the overall strong EBITDA growth was on the back of pricing environment and product mix in its core businesses of cellulosic fibres and chemicals. The operating margin of the company increased to 8.31% for the June quarter, sharply higher than 4.41% in the year-ago quarter.

 

The EBITDA growth of the company was supported by cost of materials consumed, whose rise of 23% on year was below the revenue growth of 28% for the June quarter. The materials cost was 45% of the total expenses. The EBITDA growth was also supported by a small increase of 4.4% on year in power and fuel costs and other expenses going up by just 13% on year.

 

The cellulosic fibre segment EBITDA was up nearly two times on year at INR 6.32 billion. The company attributed this high growth to a low base of the year-ago quarter and "higher contribution from specialty fibres." The specialty fibre volume mix improved to 27% in the June quarter from 21% in the year-ago quarter.

 

The chemicals segment's EBITDA increased 16% on year to INR 4.91 billion. The net profit performance of the company was largely driven by the strong EBITDA growth.

 

Grasim said it incurred capital expenditure of INR 3.75 billion in the June quarter and is targeting capex of INR 31.6 billion for 2026-27 (Apr-Mar).

 

On Wednesday, shares of Grasim ended at INR 3,307.80, down 0.4% from the closing price on Tuesday, on the National Stock Exchange.  End

 

Edited by Avishek Dutta

 

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