GRASIMNSEq2fy26November 05, 2025

Grasim Industries Limited

8,124words

50turns

9analyst exchanges

0executives

Key numbers — 40 extracted

25 basis point

background noise. On October 29, 2025, the Fed cut the target range for the federal fund rate by 25 basis points to 3.75% to 4%, the lowest in three years. This followed an earlier cut of 25 basis points in Se

3.75%

On October 29, 2025, the Fed cut the target range for the federal fund rate by 25 basis points to 3.75% to 4%, the lowest in three years. This followed an earlier cut of 25 basis points in September. T

r 29, 2025, the Fed cut the target range for the federal fund rate by 25 basis points to 3.75% to 4%, the lowest in three years. This followed an earlier cut of 25 basis points in September. The rat

4.8%

consumption momentum remains intact. China is the second spotlight. China's GDP growth slowed to 4.8% year-on-year in quarter 3 of this calendar year 2025, the weakest pace in a year. Data shows Chin

100%

an era where optionality has more value than certainty. We don't need to predict the future with 100% precision. What we need to do is stay prepared for multiple futures. Grasim's multi-segment pre

INR1,60,000 crore

portunity. The growth continues to exhibit resilience with trailing 12-month revenues now nearing INR1,60,000 crores, that is over USD18 billion compared to approximately INR95,000 crores, that is USD11 billion in

18 billion

xhibit resilience with trailing 12-month revenues now nearing INR1,60,000 crores, that is over USD18 billion compared to approximately INR95,000 crores, that is USD11 billion in FY '22 when measured on equa

INR95,000 crore

h revenues now nearing INR1,60,000 crores, that is over USD18 billion compared to approximately INR95,000 crores, that is USD11 billion in FY '22 when measured on equal currency rates, a remarkable growth of 1

11 billion

,60,000 crores, that is over USD18 billion compared to approximately INR95,000 crores, that is USD11 billion in FY '22 when measured on equal currency rates, a remarkable growth of 14%. Moreover, the stand-

14%

es, that is USD11 billion in FY '22 when measured on equal currency rates, a remarkable growth of 14%. Moreover, the stand-alone business continues to gain share now at 24% in quarter 2 FY '26 in the

24%

, a remarkable growth of 14%. Moreover, the stand-alone business continues to gain share now at 24% in quarter 2 FY '26 in the overall consolidated revenues nearing its highest ever milestone of IN

INR10,000 crore

4% in quarter 2 FY '26 in the overall consolidated revenues nearing its highest ever milestone of INR10,000 crores per quarter. Our CFO, Mr. Hemant Kadel, will further touch upon these numbers in detail. However

Guidance — 20 items

Himanshu Kapania

opening

“On October 29, 2025, the Fed cut the target range for the federal fund rate by 25 basis points to 3.75% to 4%, the lowest in three years.”

Himanshu Kapania

opening

“The upcoming 5-year plan will be closely watched as it will set national priorities through 2030.”

Himanshu Kapania

opening

“Winners will be those who stay flexible on timings.”

Himanshu Kapania

opening

“However, as I said earlier, we do not live in a constant world, which is why 2 years back, we entered into 2 new high-growth businesses, and I'm very happy to say that both these businesses are on track to achieve their stated targets.”

Himanshu Kapania

opening

“With this plant's commercialization, the announced project phase of Decorative Paints concludes and the decorative paints installed capacity is now 1,332 million liters per annum across the six plants.”

Himanshu Kapania

opening

“As per internal estimates, the organized decorative paint industry has grown in low single digits on Y-on-Y basis in quarter 2 FY'26, largely due to incumbents push for lower-end economy products.”

Himanshu Kapania

opening

“We expect the demand for Birla Opus Assurance to accelerate snowballing into basic consumer expectation doing painting beyond product warranty.”

Himanshu Kapania

opening

“We remain on track to build India's differentiated and largest painting service network serviced through the largest branded franchise network.”

Himanshu Kapania

opening

“On distribution front, the brand has crossed its earlier guidance and reached to over 10,000 towns on a pan-India basis, which is historic achievement in such a short time.”

Himanshu Kapania

opening

“Grasim applauds the Birla Opus team for flawlessly executing a large and global scale greenfield project, commissioning six state-of-art plants simultaneously, achieved without cost overruns with rapid scale-up and consistent first-time right quality across 190-plus products.”

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Risks & concerns — 14 flagged

The rate cuts indicate balance of risks are now shifting towards risk of growth and employment.

— Himanshu Kapania

Property demand is frozen, household confidence is weak and private entrepreneurs are holding back capex decisions.

— Himanshu Kapania

Just to summarize, the situation that global trade is seeing is more pressure points.

— Himanshu Kapania

Birla Pivot was created to solve a pressing challenge in India's business landscape, simplifying building and other sectors raw material procurement for the companies that power the nation's growth.

— Himanshu Kapania

My experience spans across corporate finance, risk management, mergers and acquisitions and enterprise-level initiatives.

— Hemant Kadel

You did point towards market share gains, but the other peers who have announced have seen almost a 10% decline given the weak monsoon, weak environment, I would love to know how does the business stack up versus that?

— Avi Mehta

And the first time we saw that the overall industry on a quarter-on-quarter basis has had a double-digit decline.

— Himanshu Kapania

Our Birla Opus on a year-on-year basis had a significant growth, but on a quarter-on-quarter basis, had a low single-digit decline, which was primarily during the periods of July and August.

— Himanshu Kapania

Your concern has been how is it that we have been expanding our reach, and it has not translated into revenue.

— Himanshu Kapania

But on a quarter-on-quarter basis, we had a least decline when the industry had a double-digit decline.

— Himanshu Kapania

I had almost flat or slightly negative on decline basis.

— Himanshu Kapania

That is the reason why the slowdown happens.

— Himanshu Kapania

Second is, is there a risk that it decelerates further?

— Jai Doshi

My question is, should investor view this transition as a natural phase in generally difficult competitive business or as inflection point of any refreshed strategy?

— Prateek Kumar

Q&A — 9 exchanges

Sir, my questions were on the paint business, especially wanted to better understand your thoughts post the resignation of Rakshit, in terms of the rough time line for the successor announcement, any change in growth strategy, aggression. I would love to hear your thoughts on that. And so the second question, if I can put it up front, is on the performance in the paint business in the quarter on a sequential basis. You did point towards market share gains, but the other peers who have announced have seen almost a 10% decline given the weak monsoon, weak environment, I would love to know how do

Himanshu Kapania

Thank you, Avi. In the life of a professional, individuals take their call on where they want to build their career. Rakshit has helped Birla Opus from the very start of the business to build the project and in the initial phase of launch. Now Birla Opus has a very strong, high-performing team and will continue to stay course on the vision that has been announced to the market. I'd like to remind you the vision that the company has announced to the market, we have committed to be number two as well as profitable within three years of full-scale operation. We will stay course on that. As regard

A couple of questions. First, just as a continuation on the Paints question earlier. Now that we are out of a pretty long and persistent monsoon season, how should one look at the industry demand for the second half? And to that extent, with Kharagpur now fully commercialized, how should we look at your ramp-up in second half from that perspective? So that's my first question.

Himanshu Kapania

Thank you, Rahul. We are highly optimistic and results of September and October bear us out of a strong quarter 3, both on a year-on-year basis as well as a quarter-on-quarter basis. So our guidance is continued double-digit growth on a quarter-on-quarter basis and a significantly high growth on a year-on-year basis. As regards to our capacity, as we mentioned, we are at 1,332 million liters per annum, with Kharagpur arrival in the short term, it will help managing our logistics costs and better servicing on the Eastern and Central India. But in the long term, our aim is to ensure that the vol

This Navin Sahadeo from ICICI Securities. So two questions. One on paints and the second on B2B commerce. On paints, if you could just give us more details about the number of dealers in this particular quarter versus the last quarter. And the reason I'm asking this because this time, Diwali was a little advanced. As you mentioned in your presentation, there is net addition to the number of accounts from 8,000 in the previous quarter to 10,000. The SKUs have gone up. The product portfolio has also expanded. But yet, sequentially, as you mentioned in your opening comments or to the previous que

Himanshu Kapania

Thank you, Navin. You're right. We have expanded our distribution network to beyond our original guidance of 8,500 towns to 10,000 towns. And we continue to be able to expand beyond urban into the rural and the small town category. As regards dealers, the way to look at it is either we measure dealers on a quarter-wise basis, or we measure on a month-wise basis. Your concern has been how is it that we have been expanding our reach, and it has not translated into revenue. To measure that, we should look at the number of dealers that have participated with us in September and October. And we've

Can you just tell us the number of distributors, your target was 50,000. Have you achieved that target?

Himanshu Kapania

Yes, we are there. Okay. Okay. And how many of them would be monthly active distributors as in ordering at least once a month? We believe we are better than the industry standards. In percentage terms? Yes, right. Understood. Understood. And your guidance of INR10,000 crores turnover by FY '28, does that remain valid? Yes. Understood. Understood. Also, just wanted to understand what is the next push in terms… See, when you started off, the first push was in terms of making the distribution available and increasing the number of distributors. Now more or less, that lever is sort of done. Of cou

So just wanted to get some sense, sir, let's say, because of this rainy season, has there been any sort of impact in this Q2 thing? And that is why you're calling out, let's say, the early part of the quarter was tapered. And despite you adding stores or adding distribution, you haven't seen performance to that extent. Because what is happening is the market always correlates individuals leaving at the top to the delivery of outcomes. And if that is, I'm just trying to get some sense on that.

Himanshu Kapania

Understood, Manish. So let me first clarify. We believe that we have the best growth on a quarter-on-quarter basis. Obviously, when you measure on a year-on-year basis, we are a triple- digit growth. So that may not be so relevant. But on a quarter-on-quarter basis, we had a least decline when the industry had a double-digit decline. I had almost flat or slightly negative on decline basis. What is the reason for this decline? Broadly, whenever there is monsoons, the exterior products and institution business slows down. And that is our peak monsoons in July and August. So if a part of our busi

I have two questions on chemicals. Sir, the first is when we see our EBITDA run rate for chemicals, like last year, we were at anywhere between INR250 crores to INR300 crores. And today, when we see we have inched up to anywhere between INR350 crores to INR400 crores. So just want to understand from you that when can we again start seeing the meaningful improvement in the EBITDA run rate for chemicals? And if you can explain this in context of, (a) chlorine value-added products. So is there any scope for improvement in per kg margins here. (b) newer capacities like ECH and CPVC and when it sho

Jayant Dhobley

So, I'll go in reverse order of your questions to the extent I remember all of them. So firstly, we are at about 24%, 25% renewable level as of now, right? If I look at all that we have and all the state-level regulations, we expect that in the next three years, we should be able to technically get to 40%. And I use the word technically because we have not yet envisaged those projects. We have not yet signed the PPAs, but that would be a kind of aspirational level for the next 3 years. I can't forecast because, as you know, every state has its own regulation on banking, billing, surcharges, et

My question is generally on market share trends. Now last year, during the course of the year on a Q-o-Q basis, you were adding 100, 150 basis points of market share every quarter. It seems to have moderated to about 20 basis points starting this year. So is this entirely the difference between primary, secondary? That's my first question. Second is, is there a risk that it decelerates further? Or you think that you will be able to gain 20, 30 basis point market share Q-o-Q from here onwards over the next few quarters as well. And lastly, mathematically, for you to sort of INR10,000 crores in

Himanshu Kapania

Thank you, Jai. I'm not sure how you're doing your calculations and how you're arriving at quarter 1, 20 basis point or quarter 2 at a slow market share growth. So first and foremost, I want to register the revenue reporting of paint companies has 3 broad components: decorative paints, putty business as well as industrial paints. Now we have a fair bit of idea of their industrial paints, some of them are also reporting a breakup between industrial and decorative paints. Now with decorative paints and putty business of the legacy players and decorative paints and putty business of Birla White,

I have a couple of questions. Firstly, on PSF segment and caustic, the performance on a cumulative basis remains range bound like last few quarters. Do you see any figures which could provide any positive change in performance in this business. Some of it you have already alluded and like answered that.

Vadiraj Kulkarni

Yes. See, we expect a slightly better performance in Q3. But obviously, there are a lot of ifs and buts in terms of U.S. tariffs, in terms of global pulp prices. We expect stability and a slightly better performance for Q3. Okay. Also, another question is on resignation of Rakshit, which comes as a big surprise to anyone who has been tracking Birla Opus closely. My question is, should investor view this transition as a natural phase in generally difficult competitive business or as inflection point of any refreshed strategy? It's a natural phase of professionals growing in their career. This w

I just had a clarification. When you're saying that the paints industry has grown at low single digits in the second quarter, and it's negative, excluding Birla Opus. This just decorative organized paints or adding putty as well?

Himanshu Kapania

Yes, including putty.

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Speaking time

Himanshu Kapania

Moderator

Percy Panthaki

Navin Sahadeo

Rahul Gupta

Sandeep Komaravelly

Nirav Jimudia

Jayant Dhobley

Prateek Kumar

Ankit Panchmatia

Opening remarks

Ankit Panchmatia

Yes. Hi. Thanks Raiyo. Good evening, and thank you for joining everyone on Grasim's Second Quarter Financial Year 2026 Earnings Call. The financial statements, press release and presentation are already uploaded on the websites of stock exchanges and our website for your reference. For safe harbor, kindly refer to cautionary statement highlighted in the last slide of our presentation. Our management team is present on this call to discuss our results and business performance. We have with us Mr. Himanshu Kapania, Managing Director, Grasim Industries and Business Head, Birla Opus Paints; Mr. Hemant Kadel, Chief Financial Officer of Grasim Industries. Also from the business team, we have with us Mr. Jayant Dhobley, Business Head of Chemicals, Cellulosic Fashion Yarn and Insulators business; Mr. Vadiraj Kulkarni, Business Head of Cellulosic Fibers business; and Mr. Sandeep Komaravelly, CEO, Birla Pivot, our B2B ecommerce business. Let me now hand over the call to Himanshu sir for his open

Himanshu Kapania

Thank you, Ankit, and good evening to everyone. We welcome you to Grasim Industries Earnings Call for the quarter ending 30th September 2025. Hope you had a good Diwali and New Year Vikram Samvat 2082. Also, as today's Guru Nanak Jayanti, may you be blessed with peace, happiness and love. Starting with macroeconomics, we have now entered the final lap of this calendar year 2025 with a global economy that is not in recession, but not in a synchronized expansion either. We are living in a world where trade is rewiring, capital is repricing and geopolitics has once again become a single order economic variable, not a background noise. On October 29, 2025, the Fed cut the target range for the federal fund rate by 25 basis points to 3.75% to 4%, the lowest in three years. This followed an earlier cut of 25 basis points in September. The rate cuts indicate balance of risks are now shifting towards risk of growth and employment. Add to that, the Trump administration's renewed emphasis on tari

Hemant Kadel

Thank you, Himanshu. Good afternoon and festive greetings to everyone. It is a privilege to address all of you on this earnings call in my capacity as CFO. I have been with the group for more than 30 years. And during this journey, I have been part of the core management team, leading several strategic initiatives and governance responsibilities. My experience spans across corporate finance, risk management, mergers and acquisitions and enterprise-level initiatives. As a CFO of a conglomerate like Grasim, my role is to ensure that our financial strategy and execution are fully aligned with the five pillars that has defined our organization's long-term growth journey, which is leadership, innovation, sustainability, capital allocation and cost leadership. Coming to our current quarter performance, Grasim has delivered consistent revenue growth for 21 consecutive quarters on a year-on-year basis with trailing 12 months consolidated revenues of INR1,59,663 crores, up by 8% compared to FY

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