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Grasim Inds Q1 PAT climbs 32% YoY to Rs 1,419 cr

08-Aug-25 16:31 Hrs IST

Profit before tax (PBT) increased 42.48% YoY to Rs 3833.58 crore during the quarter.

EBITDA stood at Rs 6,430 crore during the quarter, registering the growth of 36%, mainly led by higher profitability in cement and chemicals businesses partially offset by initial investments for building a strong consumer facing paints business.

Revenue from cellulosic staple fibre (CSF) business grew 7% YoY to Rs 4,043 crore in Q1 FY26. The company's domestic CSF sales volumes grew by 2% YoY though overall CSF sales volume de-grew by 1% YoY at 209 KT due to lower exports. Cellulosic fashion yarn (CFY) business recorded volume growth of 6% YoY, however realisations remained under pressure due to low priced imports from China.

The chemicals business reported 1.6% YoY growth to Rs 2,391 crore in Q1 FY26. Caustic soda sales volume grew by 8% YoY. Caustic soda international average spot prices (CFRSEA) for Q1FY26 stood flattish YoY at $468/ton. Its equivalent caustic unit (ECU) realisations were up 10% YoY to Rs 35,911/ton.

The building materials segment reported revenue growth of 22% YoY to Rs 23,733 crore. led by growth across cement, paints and B2B e-commerce businesses. EBITDA grew by 48% YoY to Rs 4,291 crore, led by higher profitability in cement business (UltraTech) partially offset by initial expenses for building a consumer facing brand 'Birla Opus' in the decorative paints business.

The company said that cement business, UltraTech continues to expand capacities with total capacity (India + Overseas) reaching 192.3 MTPA. Consolidated sales volumes of the cement business were up by 9.7% YoY to 36.83 MT and ready-mix concrete sales volumes grew by 20% YoY to 3.9 million cubic meters.

Under the paint business, Birla Opus, reported double digit revenue growth on a QoQ basis. The paint distribution network has expanded to over 8,000 towns. The business has introduced new product packaging and expanded its portfolio to 179 products with over 1,460 SKUs across entire six decorative paints product categories. The company said that it is expanding the scope of branded painting services 'PaintCraft' through dealer operated franchisees across more than 100 towns in Q2FY26. Total cumulative capital expenditure for the business stood at Rs 9,555 crore till June 2025.

The firm's B2B E-Commerce business, Birla Pivot reported high single-digit revenue growth on QoQ basis, despite monsoon-led slowdown affecting the demand in the sector. The company stated that the business remains on track to achieve revenue of Rs 8,500 crore ($1 billion) by FY27.

Revenue of the financial Services business (Aditya Birla Capital), as consolidated in accordance with Ind AS, grew by 8% YoY to Rs 9,488 crore. The overall lending portfolio (NBFC and HFC) increased by 30% YoY to Rs 1,65,832 crore.

Revenue from other businesses (textiles, renewables, and insulators) stood at Rs 865 crore and EBITDA stood at Rs 154 crore. In the renewable business, cumulative installed capacity increased to 1.9 GWp in June 2025, up two-fold from 946 MW in June 2024. Textiles business revenue de-grew by 3% YoY at Rs 547 crore.

Capital expenditure stood at Rs 480 crore in Q1 FY26. The board has approved capital expenditure of Rs 2,263 crore for FY26. The Phase-1 of the Cellulosic Fibres business, Lyocell project of 55K TPA (total capacity 110K TPA) is progressing as per plan with commissioning targeted by mid-2027.

Grasim Industries, a flagship company of the Aditya Birla Group, is a leading diversified player with leadership presence across many sectors. It is a leading global producer of viscose staple Fibre and viscose filament yarn, the largest chlor-alkali, advanced material, linen yarn and fabrics producer in India. The company recently has entered paints business and setting up six plants across pan-India locations.

The counter fell 1.94% to settle at Rs 2,690.20 on the BSE.