Grasim Industries LimitedDiversifiedGRASIM
Q1 FY27 earnings callGrasim Industries Limited
Grasim delivered record quarterly revenues, with standalone business accelerating and new growth engines Birla Opus Paints and Birla Pivot scaling rapidly.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Consolidated Revenue | INR 48,716 Cr | 21% | |
| Standalone Revenue | INR 11,795 Cr | 28% | |
| Birla Opus Revenue | INR 1,661 Cr | 64% | |
| Birla Pivot Revenue | INR 2,548 Cr | 75% | |
| UltraTech Cement Sales Volume | 41.31 Mn Tons | 12% | |
| Consolidated Net Debt/TTM EBITDA | 1.45x | — |
Financials
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹34,792.85 Cr+8.8% YoY+3.7% QoQ | ₹1,844.29 Cr-29.2% YoY+67.6% QoQ | ₹13.47-41.6% YoY+129.9% QoQ |
| Q2 FY25 | ₹33,562.85 Cr+11.1% YoY-0.9% QoQ | ₹1,100.16 Cr-45.6% YoY-51.5% QoQ | ₹5.86-66.9% YoY-67.9% QoQ |
| Q1 FY25 | ₹33,860.75 Cr+9% YoY-10.2% QoQ | ₹2,267.74 Cr-12% YoY-16.7% QoQ | ₹18.25-24% YoY-11.8% QoQ |
| Q4 FY24 | ₹37,727.13 Cr+12.7% YoY+18% QoQ | ₹2,721.81 Cr+15.5% YoY+4.5% QoQ | ₹20.69-0.8% YoY-10.4% QoQ |
| Q3 FY24 | ₹31,965.48 Cr+11.6% YoY+5.8% QoQ | ₹2,603.43 Cr-41.6% YoY+28.6% QoQ | ₹23.08-39.8% YoY+30.2% QoQ |
TL;DR
- Consolidated revenues reached INR 48,716 crores, up 21% YoY, marking 24 consecutive quarters of YoY growth.
- Standalone business grew 28% YoY to INR 11,795 crores, with EBITDA more than doubling (+107%) to INR 1,094 crores.
- Birla Opus Paints revenue grew 64% YoY to INR 1,661 crores, gaining 30 bps market share sequentially and targeting INR 10,000 crores by FY28.
- Birla Pivot (B2B e-commerce) revenue grew 75% YoY to INR 2,548 crores, on track for EBITDA break-even by FY27 exit.
- UltraTech (cement) volumes grew 12% YoY to 41.31 million tons, with consolidated EBITDA up 12% to INR 5,146 crores.
- Cellulosic Fibers revenue grew 12% YoY to INR 4,530 crores; Chemical segment revenue grew 10% YoY to INR 2,640 crores.
Said on the call
“We are building a franchise, not optimizing a quarter.”
From the Q&A
| Topic | What management said |
|---|---|
| Paints Quarterly Performance & Outlook | Management explained the strong Q1 industry growth included dealer stocking ahead of price hikes, which a new entrant like Birla Opus couldn't fully participate in. They reiterated the commitment to reach INR 10,000 crores revenue (by FY28) and profitability thereafter, and guided for over 50% YoY revenue growth in FY27. |
| Paints Raw Material Cost & Pricing | Raw material costs increased 20-25% on COGS basis, leading to a phased price increase with a cumulative 8.8% impact in Q1 and some flowing into Q2. Q2 volume trends are uncertain due to dealer destocking and monsoons, but growth is expected to normalize by Q3. |
| Birla Pivot Break-even and Revenue Mix | Birla Pivot is on track for EBITDA break-even by exit of FY27. The retail channel is 15-20% of its mix, and within that, UBS stores contribute 70-75% of retail revenue. |
| Royalty Payments to Birla Holdings | A 0.25% royalty on standalone revenues is applicable from June 2026, with a cap of INR 225 crores. The estimated impact for Grasim is around INR 100 crores. |
| AB Renewables Cash Contribution | Grasim's equity contribution to the AB Renewables venture in FY27 will be less than INR 1,000 crores and is not a material cash flow concern for Grasim. |
| Chemicals & VSF Market Outlook | Management highlighted extreme volatility in chemical markets due to geopolitical factors and shipping issues, with Q2 margins facing pressure from higher-cost inventory. For VSF, strong international prices and rupee depreciation aided realizations, but sustainability depends on input costs and global demand. |
Guidance
- Birla Opus Paints aims to become a INR 10,000 crores brand by FY28.
- Birla Pivot is on track to achieve EBITDA break-even by exit of FY27.
- Grasim's standalone capex plan for FY27 is INR 3,157 crores.
- Consolidated net debt to TTM EBITDA will be maintained below 2x.
Source
Summary written from the transcript filed by Grasim Industries Limited for the call held on 12 Aug 2026; published 22 Aug 2026, 09:51 IST.