Grasim Industries , a diversified conglomerate, is expected to report a significant increase in net loss for its latest quarter, according to recent brokerage forecasts. Despite projections of strong revenue growth, the company faces challenges across various business segments.

Projected Financial Performance

Brokerages estimate that Grasim Industries will report a net loss ranging between Rs 178.00 crore and Rs 309.00 crore, a substantial increase from the Rs 52.00 crore loss recorded in the same period last year. However, the company is anticipated to achieve impressive revenue growth of over 30% year-on-year, with estimates ranging from Rs 8,965.00 crore to Rs 9,195.00 crore.

EBITDA and Margin Outlook

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is expected to decline by 17-25% year-on-year, reaching between Rs 245.00 crore and Rs 270.00 crore. However, this represents a sequential improvement. EBITDA margins are projected to be around 2.7-2.8%, down approximately 190-206 basis points compared to the same period last year.

Segment Performance

Viscose Fibre (VSF) Business

The widening losses are primarily attributed to continued pressure in the viscose fibre (VSF) business, which remains a key concern for the company.

Paints Division and B2B E-commerce

Ongoing losses in the paints division and expansion costs related to B2B e-commerce ventures are also contributing to the expected increase in net loss.

Chemicals Segment

The chemicals segment shows marginal improvement, with gradual recovery observed in domestic demand.

Building Materials Segment

The building materials segment, which includes paints and B2B e-commerce, is estimated to contribute approximately Rs 2,200.00 crore in revenue.

Key Areas to Monitor

Investors and analysts will be closely watching several aspects of Grasim Industries' performance:

• Performance of new business verticals
• VSF pricing trends
• Demand momentum in the chemicals division

As Grasim Industries navigates through these challenges, the market will be keen to see how the company addresses the pressures in its various business segments and capitalizes on the strong revenue growth to improve its bottom line in the coming quarters.

Grasim Industries Limited , a prominent player in the Indian manufacturing sector, is currently grappling with a significant financial challenge stemming from a past acquisition. The company has received an order from the District Magistrate of Sonebhadra, Uttar Pradesh, alleging underpayment of stamp duty on a 2011 acquisition.

The Allegation and Demand

The order demands a total of ₹8.66 crore from Grasim Industries. This amount comprises:

• Differential stamp duty of ₹8.26 crore
• 18% annual interest on the differential amount
• A penalty of ₹0.40 crore

Background of the Case

The case revolves around the acquisition of a Chlor-alkali chemical plant from Kanoria Chemicals & Industries Limited at Renukoot. This acquisition took place on July 8, 2011, and was initially made by Aditya Birla Chemicals India Ltd. Subsequently, Aditya Birla Chemicals India Ltd. merged with Grasim Industries on April 1, 2015.

Company's Response

Grasim Industries has acknowledged the receipt of the order through a disclosure to the stock exchanges. The company stated that it is currently evaluating the order and considering challenging it before the appropriate authorities. This approach suggests that Grasim Industries may contest the allegations and the financial demands made by the District Magistrate.

Potential Impact

While the financial impact of this demand is significant, Grasim Industries has not yet quantified its potential effect on the company's operations or financials. The company's decision to evaluate and potentially challenge the order indicates that it may not immediately impact their financial statements.

Upcoming Financial Results

In a separate announcement, Grasim Industries has informed that its Board of Directors will meet on August 8, 2025, to consider and approve the unaudited financial results for the quarter ended June 30, 2025. This meeting might provide more insights into the company's financial position and any provisions made for the stamp duty case.

Trading Window Closure

As per regulatory requirements, Grasim Industries has closed its trading window for all Directors, Designated Persons, and Connected Persons from July 1, 2025, until August 10, 2025. This closure is standard practice before the announcement of financial results to prevent insider trading.

The outcome of this stamp duty case and its potential impact on Grasim Industries' financials will be closely watched by investors and market analysts in the coming weeks.