Grasim Industries Limited held its earnings call on 20th May 2026 to discuss Audited Financial Results, both Standalone and Consolidated, for the quarter and year ended 31st March 2026. The call, whose audio recording has been made available to investors and analysts, also featured key management guidance on the company's paints business, Birla Opus, its B2B venture Birla Pivot, UltraTech Cement's capacity expansion, and the company's broader capital allocation strategy.

Birla Opus Growth Targets

Management shared forward-looking guidance for Birla Opus, the company's decorative paints venture, during the concall. The key targets highlighted by management are summarised below:

Management indicated that FY26 is considered the first full year of full-scale operations for Birla Opus. The target of achieving INR10,000 crore in profitable revenue is set for the third year of full-scale operations. Additionally, Birla Opus is targeting high double-digit growth for FY27, as the business scales up its presence across the decorative paints segment.

Birla Pivot: EBITDA Breakeven Guidance

Management provided guidance on Birla Pivot, the company's B2B commerce venture, outlining its near-term profitability roadmap. Birla Pivot targets exiting FY27 with EBITDA breakeven, with management noting that this milestone could potentially be achieved sooner. The business is expected to continue its revenue growth trajectory while deepening its category presence across segments it operates in.

UltraTech Cement Capacity Expansion

Management also provided an update on UltraTech Cement's capacity expansion plans. UltraTech Cement is on track to reach 240+ million tons per annum (MTPA) capacity by March 2028, underscoring the group's continued commitment to scaling its cement operations.

Capital Allocation Strategy

Management outlined Grasim's broader capital allocation framework during the concall. The strategy involves reinvesting all revenues and EBITDA from Grasim into its growth businesses. Maintaining over 50% stake in UltraTech and Aditya Birla Capital is stated as a long-term objective for the company.

Earnings Call Recording & Regulatory Filing

The audio recording of the earnings call is accessible to investors and analysts via the official link hosted on the company's website. The intimation was issued under reference number GIL/CFD/SEC/27/034/SE and dated 20th May 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The filing was digitally signed by Neelabja Chakrabarty, Company Secretary and Compliance Officer (ACS - 16075), on behalf of Grasim Industries Limited. Copies of the communication were addressed to the Luxembourg Stock Exchange, Citibank N.A. (Depositary Receipt Services, New York), and Citibank N.A. (Custodial Services, Mumbai).

Grasim Industries has received a renewed vote of confidence from Morgan Stanley, which has maintained its Overweight rating on the stock while raising its target price to ₹3,900 from ₹3,865. The global brokerage has also designated Grasim Industries as an Analyst Top Pick, reflecting a constructive outlook on the company's near- and medium-term performance drivers.

Key Highlights of Morgan Stanley's Rating

The following table summarises the key parameters of Morgan Stanley's updated assessment of Grasim Industries:

Drivers Behind the Positive Outlook

Morgan Stanley's bullish stance is underpinned by several key factors that the brokerage identified as catalysts for the company's performance and stock rerating:

• EBITDA Beat: The company delivered an EBITDA performance ahead of expectations, with the chemicals and cellulose segments emerging as primary contributors to this outperformance.
• Paints Business Momentum: Strong growth in the paints business, accompanied by meaningful market share gains, has reinforced confidence in this segment's trajectory.
• FY27 Paints Industry Outlook: Morgan Stanley highlighted a double-digit growth outlook for the paints industry in FY27, which is expected to be a tailwind for Grasim's paints operations.
• Birla Pivot Momentum: Progress under the Birla Pivot initiative was cited as an additional positive factor supporting the overall investment thesis.

Rerating Triggers and New-Age Business Scaling

Beyond near-term operational performance, Morgan Stanley pointed to multiple rerating triggers that could drive further value creation for shareholders. These include the unlocking of value from the paints business and the scaling of new-age businesses within Grasim's portfolio. The brokerage's designation of Grasim Industries as an Analyst Top Pick underscores its view that these structural growth levers, combined with segment-level outperformance, position the stock favourably among its coverage universe.