Grasim Industries Ltd (BOM:500300) Q3 2026 Earnings Call Highlights: Strong Revenue Growth …

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Wed, February 11, 2026 at 10:00 PM GMT+9 3 min read

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GRASIM.NS

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This article first appeared on GuruFocus.

Release Date: February 11, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Grasim Industries Ltd (BOM:500300) reported a 25% year-on-year increase in consolidated revenue for the current quarter, reaching INR 44,312 crores.

The company's paints business, Birla Opus, expanded its revenue market share by more than 300 basis points year-on-year, with sales volume rising by 70%.

Grasim's B2B e-commerce business, Birla Pivot, crossed an annualized revenue run rate of INR 8,500 crores, ahead of its FY27 target.

The company achieved a 33% year-on-year growth in consolidated EBITDA, with standalone EBITDA growing by 57%.

Grasim's renewable energy business grew by 82% year-on-year, with a strategic investment from Global Infrastructure Partners to accelerate growth.

Negative Points

The chemical business faced a 4% year-on-year decline in EBITDA due to lower realization and profitability in the specialty chemical segment.

The cellulosic fashion yarn business experienced subdued performance due to cheaper imports from China, creating oversupply and lower downstream demand.

Grasim's paints business faces challenges in maintaining growth momentum, needing a 40% CAGR to meet its revenue target by Q4 FY28.

The company is still in the process of executing price increases in its paints segment, with uncertain consumer and contractor response.

Interest and depreciation expenses have increased due to the capitalization of new plants, impacting overall profitability.

Q & A Highlights

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Q: Can you provide insights into the growth trajectory of the paints business and the feasibility of achieving the revenue target of INR 10,000 crore by Q4 FY28? A: The Managing Director highlighted that the paints business has shown robust growth, with a quarter-on-quarter increase of 18-20%. The company remains confident in achieving the INR 10,000 crore target by the third full year of operations, driven by strong consumer demand, dealer expansion, and contractor engagement. Despite recent price increases, the company aims to maintain a competitive pricing gap with market leaders while testing consumer response.

Q: What is the current status and future outlook for the Birla Pivot B2B e-commerce business in terms of profitability? A: The CFO stated that the Birla Pivot business is on track to achieve breakeven by the end of FY27. The business has shown excellent revenue growth, and efforts are being made to bridge the gap to profitability, aligning with the company’s strategic goals.

Story Continues  

Q: How is the company addressing the challenges in the chemical segment, particularly with the trade deals and currency fluctuations? A: The Business Head of Chemicals explained that the trade deal with the USA and the appreciation of the Chinese currency are positive developments for the company’s exports to the US market. The company anticipates a positive impact on epoxy exports, although the exact volume growth will depend on customer qualifications and market conditions.

Q: Can you elaborate on the company’s strategy regarding dealer expansion and the profile of new dealers in the paints business? A: The Managing Director mentioned that the company is successfully expanding its dealer network across various categories, focusing on A, B, and C category dealers. The strategy involves reaching a wide geographical area and ensuring active engagement with dealers to drive growth.

Q: What is the company’s approach to managing price increases in the paints segment, and how does it impact the overall growth strategy? A: The Managing Director clarified that the recent price increases are part of a strategy to maintain a competitive pricing gap with market leaders. The company aims to test consumer response to these price adjustments while ensuring that the brand remains strong and continues to add value across the channel.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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