GRASIMNSEq1fy2614 August 2025

Grasim Industries Limited

8,158words

102turns

11analyst exchanges

0executives

Key numbers — 40 extracted

te but uneven resilience. Growth has slowed slightly, with the global GDP expanding at just under 3%, reflecting the lagged effects of tight monetary policy in major economies and geopolitical ten

, has surpassed on the upside with higher consumer spending. Our growth is expected to slow below 2% in the year 2025. Europe and Japan, in contrast, have seen sluggish recoveries with weak industri

4.8%

hile, the real momentum has shifted to developing Asia. China's GDP growth is projected at around 4.8%, reflecting a continued structural slowdown amid cyclic headwinds, especially in the property and

6.8%

er hand, continues to lead global growth amongst major economies, with GDP projected to expand by 6.8%, driven by stable domestic demand, higher infrastructure spending and sustained exports. Inflatio

4.3%

re spending and sustained exports. Inflation, although sticky early in the year, has moderated to 4.3% by mid-2025, allowing the RBI to shift gears from a tight monetary stance to a more neutral and

100 basis point

ance to a more neutral and growth-oriented policy, enacting three consecutive rate cuts, totaling 100 basis points in the current calendar year. In summary, the past one year has underscored a few key themes.

15%

sim has delivered 20 consecutive quarters of year-on-year revenue growth, achieving an impressive 15% CAGR since FY 2021. Our trailing 12-month TTM consolidated revenue has crossed a record high of n

₹1,50,000 crore

nce FY 2021. Our trailing 12-month TTM consolidated revenue has crossed a record high of nearly ₹1,50,000 crores, a testimony to our consistent performance and resilience. While the Company's CFO, Mr. Pavan Ja

16%

hlights, happy to share that we have started the current financial year on a high note, reporting 16% YoY growth in consolidated revenue at ₹40,118 crores. The standalone revenue for the quarter touc

₹40,118 crore

ed the current financial year on a high note, reporting 16% YoY growth in consolidated revenue at ₹40,118 crores. The standalone revenue for the quarter touched a record high of ₹9,223 crores, up 34% YoY, led

₹9,223 crore

ated revenue at ₹40,118 crores. The standalone revenue for the quarter touched a record high of ₹9,223 crores, up 34% YoY, led by high growth from new businesses, paints and B2B e- commerce, coupled with sta

34%

₹40,118 crores. The standalone revenue for the quarter touched a record high of ₹9,223 crores, up 34% YoY, led by high growth from new businesses, paints and B2B e- commerce, coupled with stable core

Guidance — 20 items

Himanshu Kapania

opening

“Riding this growth wave, we are proud to share that Grasim has delivered 20 consecutive quarters of year-on-year revenue growth, achieving an impressive 15% CAGR since FY 2021.”

Himanshu Kapania

opening

“PaintCraft has been running a direct painting services by the company in select cities for last two years, which is now being extensively expanded to over top 100 towns in Q2 FY'26 through Company's dealer-operated franchises.”

Himanshu Kapania

opening

“Grasim is proud of Birla Opus team to have executed such large-scale greenfield project of six state-of-art plants.”

Himanshu Kapania

opening

“The business annualized the revenue run rate continues to rise and remains on track to achieve ₹8,500 crore that is the billion-dollar ambition by FY'27.”

Pavan Jain

opening

“For Q1 FY26, the business reported revenue growth of 8% YoY led by housing finance which was up by 65% YoY and health insurance which was up by 31% YoY.”

Pavan Jain

opening

“In renewable business, our total installed peak capacity reached 1.9 GW in Q1 FY'26 up two- fold from 946 MW in June '24.”

Pavan Jain

opening

“On Capex front, Grasim has announced CAPEX plan of spending ₹2,263 crores in FY'26 out of which ₹480 crore has already been spent in Q1 FY26.”

Pavan Jain

opening

“Lyocell project in Cellulosic Fibre business remains on track to be completed by mid-27.”

Pavan Jain

opening

“In chemicals, mechanical completion of two projects namely ECH and CPVC plant with Lubrizol would be completed in Q3 FY'26.”

Pavan Jain

opening

“Before we open the floor for Q&A, I would like to share development on my movement as you would be aware, I am superannuating effective 15th August 25 and my colleague Hemant Kadel will be taking over as CFO.”

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Risks & concerns — 13 flagged

The US Federal Reserve and European Central Bank maintain a cautious stance through much of the past year vary of premature rate cuts.

— Himanshu Kapania

Europe and Japan, in contrast, have seen sluggish recoveries with weak industrial output, stagnant wages and fragile business confidence.

— Himanshu Kapania

China's GDP growth is projected at around 4.8%, reflecting a continued structural slowdown amid cyclic headwinds, especially in the property and consumer sectors.

— Himanshu Kapania

In H1 of calendar year 2025, there was demand slowdown globally including demand in China resulting into decline in utilization levels to 82% and increasing inventory to 20 days.

— Pavan Jain

High input prices including that of caustic soda reflected in higher profitability of our chemical segment partially absorbed by the Company has resulted into decline in EBITDA by 17% YoY.

— Pavan Jain

Amidst declining interest rate movement, the NBFC business witnessed a YoY decline of 59 basis points in the net interest margin.

— Pavan Jain

It has been a journey of growth, challenge, learning, contribution and most importantly collaboration.

— Pavan Jain

At the same time, you also know that epoxy comes into India through different countries, particularly Korea through FTA arrangements, which basically puts pressure on the epoxy chain.

— Jayant Dhobley

So, yes, within the epoxy chain, the industry is in a margin compression between hardening raw material prices, antidumping duty on one hand and duty-free imports on the other hand.

— Jayant Dhobley

That is a difficult number to give because it's a very complex portfolio, with more than 20 product lines.

— Jayant Dhobley

Difficult to say how the other players will play out because currently the focus is a lot more on economy segment and discounting.

— Rakshit Hargave

As you know, ECH is a volatile commodity.

— Jayant Dhobley

So, we, as you know, the market conditions are a little bit uncertain right now.

— Jayant Dhobley

Q&A — 11 exchanges

Hi, sir. Thank you for taking my question. Sir, first question is on paints. Wanted to check on your sales momentum in the recent months. My back of the calculation suggests that you've grown about 20% in this quarter on a QoQ basis. But just in the recent months, I wanted to check the momentum. The context of the question is generally brands in the initial phase of the launch see high demand and then it moderates down in some time as it consolidates before starting again to gain traction, if at all. There are views that Opus is now consolidating and dealers are going back to their old brands.

Rakshit Hargave

So, thank you, Mihir. Let me answer the first question. So, like we have also declared quarter- on-quarter growth is in double digits, and the fact is that the growth for us continues. So, growth, as you said, comes also from dealers who are being added, but more from dealers who are now giving us more business as counter share. On your query, that there is feedback that there is dealer attrition and dealers are going back, I am not able to comprehend that easily because firstly, let me tell you that apart from the franchises that we have majority of our dealers are multi brand dealers. We are

Two questions. So, first, just continuing on the previous question, can you help us understand how competitive landscape has evolved vs. last quarter? I remember you mentioned that the economy segment had relatively higher competitive intensity. So, just some color on this will be very helpful. That's my first question. Thank you.

Rakshit Hargave

Yes. So, like we said, the competitive intensity remains and we see that from competition side, the intensity has been increased on the value or the economy segment. The level of discounting has gone up and you can also see from all the other companies that while volume growth is there, but the value growth is much lesser than that. So, obviously, the action on discounts on the economy segment has been taken up by competition. But like we said, we continue to play very strongly in all the three segments, as you say, luxury, premium and economy. Himanshu also ratified in his opening speech that

Yes, sir. Thanks for the opportunity. Two questions on chemicals. Sir, one, when we see our YoY numbers for chemicals, our EBITDA has gone up by close to around ₹112 crores. And based on the ECU realizations, we are higher by around ₹3.40. So, which translates to a benefit of close to around ₹103 crores. So, I just wanted to check here like the benefit from ECU as well as from the renewable share was higher than this ₹103 crore and there was a degrowth in the profits from the epoxy division, your thoughts here?

Jayant Dhobley

Yes, I am not completely sure I understand your math. But the end question that you have was there a degrowth in epoxy profits. That is the question you are leading to. So, I will answer very directly instead of indirectly. So, as you know, feedstocks for epoxy basically BPA, ECH have been hardening for particularly ECH. You also know that there is an antidumping duty on ECH. At the same time, you also know that epoxy comes into India through different countries, particularly Korea through FTA arrangements, which basically puts pressure on the epoxy chain. Our approach has been to find the rig

Yes, good evening. My first question is on your B2B e-commerce segment. The segment has a scale to almost over ₹5,000 crore of revenue run rate. What is the kind of profitability the segment is doing and or any output if you can share on the same? Also, the second was, I mean, we envisaged around 2,000 crore of CAPEX when this segment was launched. How is the, I mean, how do we see CAPEX in the segment now? That is my first question.

Sandeep Komaravelly

So, on your first question, the revenue growth has been pretty good, and it continues quarter-on- quarter. As was remarked in the opening comments, we are seeing high single digit growth sequentially when you compare Quarter 4 to Quarter 1. You had asked about profitability. We had earlier mentioned it in our previous quarter calls as well at a scale of $1 billion, which is what we are estimating that we hit in FY'27. We are confident that we will break even at that scale. And all our indications and our trends right now are pointing towards that, if not sooner. Regarding your second question,

Hi. Just one question on the paints business. What is the credit policy difference that we have versus peers? Do we have a higher indexation to dealers for more credit funded versus short cycle credit?

Rakshit Hargave

If you take a look at the overall market and if you take a look at the top 3 or 4 players, our credit policy will fall somewhere in the center. So, we are with the market. It is not that we are giving less or more, but the different players have slightly different policies starting from A to B. So, our policy would fall somewhere in the average in terms of credit. Understand. And the second one is in terms of just as you go through the brand evolution, how do you track evolution from a transactional business pull through to a brand driven business pull through? How would you sort of assess tha

Yes, sir. Thank you for the opportunity. Just one on the overall industry demand. You clearly highlighted that the incumbents have not grown much. And how do you see this going forward as we enter into festive season? Any outlook that you think would find it challenging for us to maintain the growth momentum because the industry demand remains muted? That was my first question. And second is on PaintCraft. I just wanted to know, this service would be available to all our dealers and normally in a typical dealer, what is the share of painting service? I know not for all dealers, it may be, but

Rakshit Hargave

So let me answer the first question regarding how do we see the demand in the upcoming season? So you see, the season is slightly advanced this time as compared to the last few years. So you should see the festive upswing starting towards the end of this month and September should be a big month. Difficult to say how the other players will play out because currently the focus is a lot more on economy segment and discounting. And that is going to get you some volume, but that might not get you so much of value. As far as we are concerned, we will play the market as it should be. We have a very

Thank you. Just two questions on the paint side, I think I missed the point that you mentioned that excluding Birla Opus, you said that the industry growth was flat? Is that what you said?

Rakshit Hargave

If you take this year and if you take Q1 of FY'25 and if I remove Birla Opus from both left and right hand side, the market growth is marginally negative. And with Birla? With Birla, we said it's about over 5%. I understand. And what is your general estimate for the industry growth? I mean, I understand that a seasonally strong period is coming up. But on average for the year, how are you thinking about this? I think too early. It's just been one quarter. There are three more quarters left. We will have just to wait and see. We will play a good game. Raashi, I think you are the fourth asking t

Thanks for the opportunity. My question is related to chemicals business. So, you mentioned that the chlorine integration level for the quarter was 63%. So, could you give some sense or color on what portion of it was to the dedicated customers and what was for the internal consumption?

Jayant Dhobley

The breakup of the chlorine sales, I think internal consumption, I will give you a range because I do not want to give you an exact number. You can assume that about 30% to 40%, it is a range which we are giving, will be in the internal consumption. Rest goes to the pipeline customers. Okay, understood. And any sense on, since we will be having our ECH plant and as you mentioned earlier that because of the ECH prices going higher, our epoxy margins were compressed. So, as and when we have our ECH plant, where do you see our epoxy margins going forward? Yes, wouldn't that also not depend on the

Yes, thanks. So, I guess on paints, you indicated premium revenue share of premium paints is 65% is that the correct number?

Himanshu Kapania

So, it is not revenue share. Revenue contribution to the total contribution of premium plus luxury is 65%. Okay, understood. So, this premium paint is calculated means any price and above like ₹200 per litre or ₹250 per litre. Means, how do you define that? Market defines premium and luxury products, in waterproofing segment, in wood finished segment, in emulsion segment and enamel segment and the same is the definition. It varies from each category wise. It is very well defined. We have a brand, we have three broad brands. Style is a brand for economy, Calista is a brand for premium and One i

Thank you very much. My question is specifically to Mr. Himanshu.

Himanshu Kapania

Yes. Go ahead. Yes, sir. I had a forward-looking question on your emerging platform. With Birla Opus entering the decorative paints segment and Birla Pivot scaling in the B2B E-commerce, how is Grasim thinking about cross-platform data monetization, predictive data, predictive demand mapping, or AI-led SKU optimization across these verticals in the next 2 to 3 years? And in your view, could this create a differentiated ecosystem advantage versus standalone peers? So, to be able to, if I was in an environment which did not have privacy applicable to me, I would have given a very different answe

Hi, good evening. So, my question is regarding chemical business. How much is the chlorine price for this quarter?

Jayant Dhobley

For the quarter that we just reported, chlorine was trading at about 6,000-6,500 negative. Sir, while calculating ECU, are we considering flakes and hydrogen realization? So, everything that relates to the actual electrolysis process is considered in the ECU realization. That's the industry standard. Actually, like if you see, some industries are by calculating ECU, they are considering flakes. And some are like both flakes and hydrogen. So, what we are following in Grasim? So, ECU stands for electrochemical unit. So, every realization I get related to my electrochemical unit is in my ECU real

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Speaking time

Rakshit Hargave

Jayant Dhobley

Moderator

Himanshu Kapania

Nirav

Sucrit Patel

Raashi

Rahul Gupta

Nishant

Aniruddha Joshi

Opening remarks

Ankit Panchmatia

Good evening and thank you for joining Grasim's Q1FY'26 Earnings Conference Call. The Financial Statements, Press Release and Presentation are already uploaded on the website of stock exchanges and our website for your reference. For safe harbor, kindly refer to the cautionary statement highlighted in the last slide of our presentation. We have with us our management team on this call to discuss our results and business performance. We have with us Mr. Himanshu Kapania, Managing Director, Mr. Pavan Jain, Chief Financial Officer and Mr. Hemant Kadel, Incoming Chief Financial Officer of Grasim Industries. From Businesses, we have with us Mr. Jayant Dhobley, Business Head, Chemicals, Fashion Yarn and Insulator (CFI) Business, Mr. Rakshit Hargave – CEO of Birla Opus, our Paints Division and Mr. Sandeep Komaravelly – CEO, Birla Pivot, our B2B E-commerce Business and Mr. ManMohan Singh, CMO, Cellulosic Fibres Business. Let me now hand over the call to Mr. Himanshu Kapania for his opening rem

Himanshu Kapania

Good evening from India to all the participants across the globe and thank you for joining the call. Over the past one year, the global economic landscape has evolved rapidly, shaped by shifting global trade dynamics and policy responses. Let me highlight key developments across global growth, tariff policies and contrasting paths of advanced and developing economies. Firstly, on global growth. In the past year, the global economy has shown moderate but uneven resilience. Growth has slowed slightly, with the global GDP expanding at just under 3%, reflecting the lagged effects of tight monetary policy in major economies and geopolitical tensions that have weighed on investment sentiment. Inflation while cooling in most advanced economies remains above central bank targets, keeping interest rates elevated. The US Federal Reserve and European Central Bank maintain a cautious stance through much of the past year vary of premature rate cuts. This has led to tighter global financial conditio

Pavan Jain

Thank you, Mr. Kapania and good evening to everyone. Cellulosic fiber prices continue to remain resilient compared to other competing fibres like cotton and polyester which are exhibiting volatility with a downward bias. In H1 of calendar year 2025, there was demand slowdown globally including demand in China resulting into decline in utilization levels to 82% and increasing inventory to 20 days. With price increase to partially absorb the high input costs, cellulosic fiber revenue grew by 7% YoY to ₹4,043 crore. Just to remind this segment also has an element of our cellulosic fashion yarn business where the volumes grew by 6% YoY. The realizations in cellulosic fashion yarn business continue to remain impacted by lower priced imports from China. High input prices including that of caustic soda reflected in higher profitability of our chemical segment partially absorbed by the Company has resulted into decline in EBITDA by 17% YoY. In chemical business, revenue grew by 16% YoY at ₹2,3

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