Adjusted loss was at ₹120 crore, compared to a loss of ₹210 crore in Q4FY25. Birla Opus’ paints revenue market share expanded by 370 bps to cross 10 per cent.
In the Viscose Stable Fibre (VSF) segment, sales volume grew 11 per cent Y-o-Y, with realisation up 2 per cent Y-o-Y. Ebitda rose 100 per cent Y-o-Y to ₹590 crore. The operating profit margin (OPM) expanded 550 bps Y-o-Y to 13 per cent.
In chemicals, volume grew 11 per cent Y-o-Y, while realisation declined 4 per cent Y-o-Y. Ebitda rose 3 per cent Y-o-Y to ₹300 crore. OPM contracted 50 bps Y-o-Y to 12 per cent.
In Q4FY26, B2B e-commerce revenue more than doubled Y-o-Y. FY26 revenue was close to guidance of ₹8,500 crore.
The paint segment revenue grew 52 per cent Y-o-Y to ₹1,400 crore and B2B revenue rose 2.3 times Y-o-Y to ₹2,850 crore.
In FY26, revenue was ₹41,040 crore, up 30 per cent Y-o-Y. The Ebitda rose 55 per cent to ₹1,770 crore. The adjusted profit after tax (PAT) was at ₹420 crore, up 30 per cent Y-o-Y. OPM expanded 70 bps Y-o-Y to 4.3 per cent.
Operating cash flow (OCF) stood at ₹2,680 crore versus a negative figure of ₹25.4 crore in FY25. The capex was ₹2,090 crore, against ₹3,830 crore in FY25. Net cash inflow stood at ₹590 crore, compared to net cash outflow of ₹3,860 crore in FY25.
In paints, growth was being driven by distribution scale-up (over 50,000 dealers in 11,500 towns) and better product penetration across the portfolio. It added 42 new products in FY26, taking the portfolio to over 218 products and 1,850 stock-keeping units.
Management hopes that growth rates in the paint industry will accelerate to double-digit growth in FY27. Since Grasim is also a holding company, the high dividend income and value of stake held in UltraTech also contributes a large share of the stock valuations.
In paints, Grasim implemented a calibrated price hike of 2-6 per cent earlier in FY26, followed by hikes in April to offset higher raw material costs. Demand is resilient despite hikes.
The firm targets ₹10,000 crore profitable revenue franchise in paints by FY28. Losses should reduce in FY27.
Birla Opus revenue doubled Y-o-Y in FY26 though industry growth was single digits. Combined with the Birla White Putty business, it is approaching number 2 position.
There’s significant room for expansion via throughput in the dealer network and deepening product penetration across its portfolio. It has built relationships with 450,000 active contractors, through promotional schemes, loyalty programmes, digital engagement and so on. Birla Opus has achieved strong brand awareness and the professional painting services platform, PaintCraft, is available across over 6,000 pin codes.
Management also highlighted that renewable business delivered robust performance during the quarter, with revenue growing 60 per cent Y-o-Y and Ebitda rising 55 per cent Y-o-Y.
Group company Aditya Birla Capital (ABCL) has proposed an equity raise of up to ₹4,000 crore, with Grasim infusing ₹2,880 crore. After the transaction, Grasim’s stake in ABCL will be at 52.3 per cent on a fully diluted basis. Apart from that, Grasim will continue reinvesting surplus cash flows in scaling up paint and B2B e-commerce. Standalone net debt may have peaked in FY26 at ₹6,890 crore (March 2026) vs. ₹6,880 crore in March 2025.
The positives are margin expansion in VSF and volume growth in chemicals alongside high growth in B2B and paints. Cost pressures are a concern with raw material costs linked to crude and vulnerable to currency depreciation. Analysts are positive, given an upcycle in cement and VSF and rapid growth in paints and B2B, without expanding losses or increasing debt.
All 10 analysts polled by Bloomberg were bullish on the stock. Their average one-year target price is ₹3,533.10. The stock has risen 7.34 per cent in the two sessions since the results were announced on Wednesday. It closed at ₹3,154.45 apiece on Thursday on the BSE.
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