Grasim Industries reported a consolidated EBITDA of ₹8,077 crore for the quarter ended June 30, 2026, marking a new high and rising 26% year-on-year. Consolidated revenue grew 21% to ₹48,716 crore, while adjusted profit after tax (PAT) surged 49% to ₹2,153 crore. The strong performance was driven by robust growth across its diversified portfolio, particularly in building materials and financial services, signaling resilient demand and effective cost management. This result underscores the company's ability to generate significant operating leverage even as it navigates macroeconomic headwinds. Notably, the standalone entity returned to profitability with a net profit of ₹246.65 crore, compared to a loss of ₹118.18 crore in the previous year.

The Board of Directors, chaired by Managing Director Himanshu Kapania, approved the unaudited results on August 12, 2026, in compliance with SEBI Listing Regulations. Joint statutory auditors B S R & Co. LLP and KKC & Associates LLP conducted a limited review. Standalone revenue reached an all-time high of ₹11,795 crore, up 28% year-on-year. The turnaround in standalone profitability was supported by favorable product mix and pricing in core businesses, with standalone EBITDA more than doubling to ₹1,094 crore, up 107% year-on-year.

Financial Performance Highlights

Consolidated operating margins improved to 16.14% from 15.41% in the prior year period. The adjusted PAT growth outpaced revenue expansion, reflecting operational efficiency. Standalone EBITDA margin expanded to 8.10% from 4.20% in the prior year period. Net debt to trailing twelve-month (TTM) EBITDA stood at 1.45x as on June 30, 2026, improving from 1.62x a year ago, indicating better leverage management despite increased borrowing.

The following table summarizes the key consolidated and standalone financial metrics for the quarter:

Segment-wise Contribution

The Building Materials segment remained the largest contributor with revenue of ₹28,835 crore. Within this segment, UltraTech Cement's total grey cement capacity stands at 205.5 MTPA, with sales volumes rising 12.2% to 41.3 million tons. Birla Opus further strengthened its position as the third largest player in India's organised decorative paints industry, with revenue growing 17% quarter-on-quarter and 64% year-on-year to ₹1,661 crore. The company expects over 10% growth in the organised paints market over the next decade, driven by housing demand, urbanization, premiumization, and rising aspirations. Grasim also indicated that Birla Opus is on track to achieve EBITDA break-even. Birla Pivot B2B e-commerce revenue surged 75% to ₹2,548 crore.

Financial Services recorded revenue of ₹12,155 crore, with the total lending portfolio growing 32% to ₹2,19,289 crore. Cellulosic Fibres revenue rose 12% to ₹4,530 crore due to higher global prices, despite a 4% dip in sales volumes. Chemicals segment revenue increased 10% to ₹2,640 crore, with EBITDA up 16% to ₹491 crore.

Strategic Developments

Aditya Birla Renewables Limited signed a Share Purchase Agreement on July 13, 2026, to acquire 100% of Solenergi Power Private Limited for an enterprise value of approximately ₹17,200 crore. Additionally, Aditya Birla Capital Limited raised ₹4,000 crore through preferential allotment, with Grasim investing ₹2,880 crore to maintain its 52.30% stake. The company's budgeted capex for FY27 is ₹3,157 crore, with nearly 45% allocated to growth projects.

What the Numbers Show

The divergence between standalone and consolidated profitability underscores the critical role of subsidiaries like UltraTech Cement and Aditya Birla Capital in Grasim's earnings mix. While the standalone entity returned to profitability, over 90% of the group's bottom line originates from subsidiaries. The surge in adjusted PAT (49%) versus revenue growth (21%) indicates significant operating leverage and margin expansion across key segments, particularly in chemicals and building materials.

Grasim Industries has outlined an ambitious capacity expansion roadmap for its chemicals business, targeting significant growth across key segments by the end of FY27. The company's plans encompass chlorine derivatives, caustic soda, and a stronger push toward renewable energy integration, underpinned by rising downstream demand.

Capacity Expansion Targets

Grasim Industries has announced that its chlorine derivatives capacity is set to rise to 1,130 Ktpa by FY27-end. Alongside this, the company's caustic soda capacity is targeted to increase to 1,530 KTPA, reflecting a broad-based scale-up across its chlor-alkali value chain. The following table summarizes the key capacity and integration milestones the company has outlined:

Chlorine Integration and Downstream Demand

A key highlight of the company's expansion strategy is the targeted improvement in chlorine integration, which is expected to reach approximately 68% by FY27-end. Higher chlorine integration indicates a greater proportion of chlorine being utilized within the company's own downstream operations, reducing dependency on external markets and enhancing value addition. The company has cited rising downstream demand as a primary driver supporting these capacity additions.

Renewable Energy Push

Grasim Industries has also highlighted its commitment to increasing the share of renewable power in its energy mix, with the target set at approximately 45%. This shift toward cleaner energy sources is expected to support the company's operational sustainability as it scales up manufacturing capacity across its chemicals segment.

Key Highlights

• Chlorine derivatives capacity targeted at 1,130 Ktpa by FY27-end
• Caustic soda capacity to reach 1,530 KTPA
• Chlorine integration expected at approximately 68% by FY27-end
• Renewable power share targeted at approximately 45%
• Expansion supported by rising downstream demand

The scale-up across chlorine derivatives and caustic soda, combined with higher chlorine integration and a growing renewable energy footprint, reflects Grasim Industries' strategic focus on deepening its presence in the chemicals value chain through FY27.