Grasim Q1 profit up 34 pc to Rs 2,767 cr, revenue rises to Rs 40,118 cr
The company has reported a net profit of Rs 2,065.97 crore for the April-June quarter a year ago, according to a regulatory filing.
Its revenue from operations rose 15.9 per cent to Rs 40,118.08 in the June quarter of FY26. The same stood at Rs 34,609.75 crore in the corresponding quarter a year before.
The nearly 16 per cent growth was 'driven by all-round growth across key businesses," Grasim said in its earnings statement.
Its 'consolidated EBITDA (earnings before interest, taxes, depreciation and amortisation) at Rs 6,430 crore, grew by 36 per cent year-on-year (YoY), mainly led by higher profitability in the Cement and Chemicals businesses, partially offset by initial investments for building a strong consumer-facing paints business, Birla Opus, in line with our expectations." Total expenses of Grasim, which controls companies as UltraTech, Aditya Birla Capital and businesses such as textiles, chemicals and building materials, were at Rs 36,656.89 crore, up 13.9 per cent in the June quarter.
The company's total income, which includes other income, increased 15.89 per cent to Rs 40,460.18 crore during the June quarter.
On a standalone basis, which primarily includes the India business, Grasim's revenue from operations climbed 33.8 per cent to Rs 9,223.13 crore.
This was 'led by high growth from new businesses: Paints and B2B Ecommerce, coupled with stable core businesses: Cellulosic Fibres and Chemicals".
On the segment, Grasim said, revenue from its Cellulosic Fibre business grew 6.76 per cent to Rs 4,043.27 crore.
'Our domestic CSF (Cellulosic Staple Fibre) sales volumes grew by 2 per cent YoY, though overall CSF sales volume de-grew by 1 per cent YoY at 209 KT due to lower exports," it said.
While the CFY (Cellulosic Fashion Yarn) business recorded volume growth of 6 per cent YoY, realisations remained under pressure due to low-priced imports from China.
In the segment, higher key input prices, which were passed on partially, have led to a reduction in EBITDA by 20 per cent YoY to Rs 322 crore.
Revenue from the chemicals segment was up 15.7 per cent to Rs 2,390.57 crore in the June quarter.
'EBITDA increased by 36 per cent YoY at Rs 422 crore driven by higher volume and improved realisation in Caustic Soda and better profitability of Chlorine Derivatives," it said.
Its revenue from its Building Material business reported a growth of 22 per cent to Rs 23,732.93 crore. It was at Rs 19,450.19 crore in the April-June quarter a year ago.
Grasim's 'Building Materials' comprises its Cement business, UltraTech, its newly launched paints business Birla Opus and its B2B e-commerce business Birla Pivot.
'Consolidated sales volumes of the Cement business were up by 9.7 per cent YoY to 36.83 MT and ready-mix concrete sales volumes grew by 20 per cent YoY. UltraTech Building Solutions (UBS) outlets increased to 4,802, contributing 21 per cent of total domestic grey cement sales volume," it said.
While its decorative paints business Birla Opus reported double-digit growth in revenue on a quarter-on-quarter (QoQ) basis.
Similarly, revenue from the financial services segment — Aditya Birla Capital Ltd (ABCL) — climbed 7.73 per cent to Rs 9,487.92 crore. It was at Rs 8,806.85 crore in the June quarter a year ago.
'The overall lending portfolio (NBFC and HFC) increased by 30 per cent YoY to Rs 1,65,832 crore. The total AUM (AMC, life insurance and health insurance) grew by 20 per cent YoY to Rs 5,53,504 crore," it said.
Grasim's revenue from other businesses, which includes textiles, renewables, and insulators, rose 8.41 per cent to Rs 865.18 crore during the said quarter.
On the outlook, the company said it stands to gain considerably from India's broad-based economic momentum.
'The Government's ambitious agenda for a Viksit Bharat, rooted in infrastructure expansion, a resurgence in domestic manufacturing, formalisation of the financial system, and rising disposable incomes, creates fertile ground for sustained demand," it said Shares of Grasim Industries Ltd on Friday settled at Rs 2,690.20 apiece on the BSE, down 1.94 per cent from the previous close. PTI KRH KRH SHW
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