Grasim Q1 net profit up 32% as cement, paints, B2B platform scale up

Profit rose to ₹1,419 crore in Q1FY26 aided by cement and chemicals, while paints and B2B e-commerce saw strong traction despite upfront investment drag

Grasim Industries, the flagship company of the Aditya Birla Group, on Friday reported a 32 per cent increase in consolidated net profit in the first quarter of FY26 (Q1 FY26), helped by its cement and chemicals businesses.

 

Net profit attributable to the diversified company’s owners rose to Rs 1,419 crore; it was Rs 1,075 crore the previous year. Consolidated revenue grew 16 per cent to Rs 40,118 crore and ebitda surged 36 per cent to Rs 6,430 crore, said Grasim in a filing on Friday. Investments in new consumer verticals such as paints and business-to-business (B2B) ecommerce continued.

 

The quarter was a milestone for Grasim as trailing twelve-month consolidated revenue crossed Rs 1.5 trillion — double since FY21 — on the back of broad-based growth.

 

 

The cement business, anchored by listed subsidiary UltraTech, was the primary earnings driver. Cement sales rose almost 10 per cent from the previous year to 36.8 million tonnes. Ebitda (earnings before interest, tax, depreciation, and amortisation) per tonne rose 37 per cent to Rs 1,248.

 

In the chemicals business, improved realisations in caustic soda and gains in chlorine derivatives lifted ebitda 36 percent to Rs 422 crore. Revenue increased 16 per cent to Rs 2,391 crore despite margin pressures in specialty chemicals due to low-cost imports. 

 

Grasim’s investments in consumer products continue to gather momentum. Birla Opus, the decorative paints venture launched earlier this year, saw double-digit revenue growth quarter-on-quarter and is now India’s third-largest decorative paints brand, according to internal estimates. Trial production at Opus’s sixth plant in Kharagpur is underway and full commercial launch is expected by Q2 FY26.

 

Cumulative capital expenditure (capex) on the paints venture stood at Rs 9,555 crore through June. Birla Opus offers 1,460 stock-keeping units (SKU) — a unique identifier for a paint product — and operates in more than 8,000 towns and cities. Despite upfront costs weighing on margins, Grasim said the response to Opus’s marketing and product rollout has been “excellent”.

 

Birla Pivot, a B2B construction materials platform, reported steady quarter-on-quarter growth despite heavy monsoon rains pulling down the sector. The marketplace now spans 40,000 SKUs across 35 product categories and is targeting Rs 8,500 crore in revenue by FY27.

 

Aditya Birla Capital, Grasim’s financial services arm, posted an 8 percent rise in revenue to Rs 9,488 crore. Its total lending portfolio increased 30 per cent from the previous year to Rs 1.66 trillion and total assets under management across insurance and asset management rose 20 percent to Rs 5.5 trillion.

 

Grasim incurred Rs 480 crore in capex in Q1 and has earmarked Rs 2,263 crore for FY26. The company said its Rs 2,000-crore Lyocell fibre project is expected to go live by mid-2027.

 

"Grasim is well placed to participate in the next chapter of India’s growth,” the company said in its outlook.