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Informist, Wednesday, May 20, 2026

 

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--Jan-Mar net loss INR 1.64 bln
--Analysts saw Grasim Jan-Mar net loss at INR 1.42 bln
--Jan-Mar revenue INR 117.74 bln
--Analysts saw Grasim Jan-Mar revenue at INR 106.16 bln
--Jan-Mar net loss INR 1.64 bln vs loss INR 2.88 bln yr ago
--Jan-Mar revenue INR 117.74 bln vs INR 89.26 bln year ago
--Jan-Mar net loss includes one-time cost INR 818.6 mln
--Jan-Mar loss excluding one-time cost INR 816.8 mln
--To pay INR 10 per share dividend
--FY26 net profit INR 3.48 bln vs INR 2.12 bln yr ago
--FY26 revenue INR 410.39 bln vs INR 315.63 bln yr ago
--Jan-Mar operating margin 5.06% vs 2.71% yr ago
--Jan-Mar EBITDA INR 6.59 bln, up 47% on year
--Q4 EBITDA YoY growth led by cellulosic fibre, textile businesses
--Cellulosic staple fibre sales volume 232,000 tn, up 12% on yr
--Cellulosic fibre revenue INR 46.14 bln, up 14% on year
--Jan-Mar chemicals revenue INR 24.58 bln, up 7% on yr
--Q4 cellulosic staple fibre sales volume 232,000 tn, up 12% on yr
--Jan-Mar chemicals EBITDA INR 3.04 bln vs INR 2.96 bln yr ago
--Q4 cellulosic fibre revenue INR 46.14 bln, up 14% on year
--Q4 cellulosic fibre EBITDA INR 5.88 bln vs INR 2.93 bln year ago
--Q4 caustic soda sales volume 321,000 tn vs 290,000 tn year ago
--Jan-Mar caustic soda sales volume up 10.7% on year
--Birla Opus capex at INR 5.50 bln as on Mar 31
--Birla Opus revenue up 19% on qtr in Jan-Mar, volume up 17% on qtr
--On Birla Opus: Price hikes to reduce gap, mitigate input cost rise
--Birla Opus saw robust demand for emulsions, waterproofing pdts
--On Birla Opus: Implementing price hikes in Q1 to offset cost rise
--Birla Opus Jan-Mar revenue market share expanded 90 bps on quarter
--Aim to commission 55,000 tpa capacity of Lyocell by mid-2027
--Jan-Mar cellulosic fashion yarn sales 11,100 tn, unchanged on year
--Q4 cellulosic yarn sales flat on weak demand from textile industry
 

 

By Avishek Rakshit

 

KOLKATA – Grasim Industries Ltd. posted its highest ever quarterly consolidated revenue in the March quarter, driven by volume growth in its chemicals and cellulosic fibres business. Its revenue, on a standalone basis, also fared better than expectations in the March quarter, leading the company to narrow down its losses on year. 

 

The Aditya Birla group company reported around 32% on-year growth in its top line for the March quarter at nearly INR 118 billion, while losses narrowed down to INR 1.64 billion from INR 2.88 billion in the year-ago quarter. However, its losses were higher than the Street's expectation of INR 1.42 billion while the revenue beat the projection of a little over INR 106 billion. 

 

Grasim's loss, however, includes an exceptional total cost of around INR 819 million which includes costs like impairment losses in its Vilayat plant, enhanced employee benefits arising from implementing the labour codes, impairment losses from subsidiaries, and write-off of capital work-in-progress. Discounting the exceptional items, Grasim's net loss for the March quarter is nearly INR 817 million.

 

Despite regulatory issues in India, domestic cellulosic staple fibre, or CSF, prices stood higher due to the depreciating rupee and partial passing of higher sulphur prices to buyers. CSF sales volume grew 12% on year to 232 kilo tonnes, driven by higher exports of specialty fibres, but the performance of the cellulosic fibre yarn business remained flat on year in the March quarter. 

 

Total revenue from the cellulosic fibres segment grew 14% on year to over INR 46 billion and earnings before interest, tax, depreciation, and amortisation from this vertical grew two times on year to nearly INR 6 billion, led by volume growth, operating efficiencies, a favourable product mix and benign pulp prices, Grasim said in a statement. The company aims to commission 55,000 tonnes per annum capacity of lyocell by mid-2027.

 

Global caustic soda spot prices in the March quarter declined 15% on year to $446 a tonne, which impacted price realisations in India as well. However, slight improvement in chlorine realisations mitigated the overall impact, Grasim said. 

 

In the March quarter, caustic soda sales volumes were at their highest ever at 321 kilo tonnes, up 11% on year, driven by stable domestic demand. Specialty chemicals revenue grew 5% on year, but profitability was impacted due to higher input costs. Grasim's revenue from the chemicals business was up 7% on year in the March quarter at over INR 24 billion and EBITDA increased 3% on year to over INR 3 billion due to better profitability in caustic and chlorine derivative products. 

 

Volume gains from these businesses, especially from cellulosic fibre and textile businesses, leading to revenue growth made the company report an EBITDA of INR 6.59 billion for the March quarter, up 47% on year, while the operating margin increased to 5.06% in the March quarter from 2.71% in the year-ago quarter. 

 

BIRLA OPUS 

In its paints business under the Birla Opus brand, Grasim continued its sequential growth momentum in the March quarter, delivering sequential revenue growth of 19% with volume growth of 17% on quarter. 

 

Birla Opus strengthened its market position with an estimated 90 basis points of market share gain sequentially in the March quarter, reinforcing its standing as the third-largest player after Asian Paints and Berger Paints in the organised decorative paints segment.

 

In the statement, Grasim said the combined revenue from Birla Opus and the Birla White Putty business was now nearing the second-largest position in the Indian decorative paints industry. In the March quarter, growth was driven by robust secondary sales, supported by a large and expanding base of 450,000 active contractors and painters, alongside strong traction in key categories such as emulsions and waterproofing. 

 

Distribution of Birla Opus paints remained a key highlight, with the network crossing 50,000 dealers across 11,500 towns serviced through 146 depots as on Mar. 31. This was further complemented by a growing footprint of branded franchise stores that are enhancing customer engagement and accessibility, Grasim said.

 

As in the past few quarters, sales of premium products continued to account for 65% of Birla Opus' revenue in the March quarter as well and the paints business also witnessed strong momentum in institutional sales, the company said, adding that it has invested INR 5.50 billion on the paints division as on Mar. 31.

 

Strategic pricing actions, effectively implying price hikes, were undertaken during the March quarter and further hikes are likely in the ongoing quarter as well, narrowing the gap with industry players and offsetting input cost inflation due to a volatile environment. Despite price increases, Birla Opus is aiming for market share gains.

 

FY26 PERFORMANCE 

For the year ended March, Grasim reported its highest-ever revenue in any financial year at INR 410 billion, up 30% on year, led by robust growth from the paints division and business-to-business e-commerce sales coupled with stable performance in its core businesses - cellulosic fibres and chemicals. The net profit for the year ended March increased over 64% on year to over INR 3 billion. 

 

EBITDA for the year ended March stood at INR 35.58 billion, up 25% on year due to a superior performance in the cellulosic fibres, chemicals and textiles businesses, which was partially offset by investment in new businesses - Birla Opus and Birla Pivot. The company has declared divided on INR 10 per share. 

 

The company also decided to acquire 26% equity stake in a special purpose vehicle formed for supply of renewable energy at Harihar in Karnataka, under the group's captive power scheme. Shares of Grasim closed 1.2% higher at INR 2,971.10 on the National Stock Exchange.  End

 

US$1 = INR 96.82

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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