Grasim Industries Limited (GRASIM)

Construction Materials · Cement & Cement Products · NSE · Updated 14 July 2026

₹3,144.3 ↑ 12.93% (1Y)

🎯 Key Takeaways

Grasim Industries is in a mature, cash-generative phase with stable operations in cement and chemicals, showing modest growth and limited reinvestment. The company maintains a high debt-to-equity ratio (1.
Revenue grew 11.1% QoQ to ₹44,312 in Q3FY26.
⚠️ High debt-to-equity (1.88) raises vulnerability to interest rate hikes and liquidity constraints.

Market Cap

₹2.00 L Cr

P/E Ratio

21.1

P/B Ratio

2.05

ROE

4.6%

ROCE

4.9%

Debt/Equity

1.88

Div Yield

0.00%

Promoter

0.0%

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📖 The Story

Grasim Industries is in a mature, cash-generative phase with stable operations in cement and chemicals, showing modest growth and limited reinvestment. The company maintains a high debt-to-equity ratio (1.88) and low ROE (4.6%), indicating capital intensity and constrained profitability. Recent shareholding trends suggest institutional confidence, but returns remain subdued. Management is focused on capital allocation through dividends and strategic stakes in affiliated entities.

📰 What's Happening

In Q1 FY26, Grasim reported revenue of ₹44,312 crore and operating profit of ₹6,015 crore, with OPM expanding to 13.4% from 12.2% in Q2 FY26. The company announced a preferential acquisition of 8.09 million shares in Aditya Birla Capital Limited, increasing its stake to 52.30% on a fully diluted basis for ₹2,879.99 crore. The AGM is scheduled for 21 August 2026, with dividend payment to be made within seven working days post-meeting, subject to shareholder eligibility as of 7 August 2026. Shareholders must submit TDS documentation by 31 July 2026 to claim tax exemptions on dividends.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Q4FY24	Q1FY25	Q2FY25	Q3FY25	Q4FY25	Q1FY26	Q2FY26	Q3FY26
Revenue	37,727	33,861	33,563	34,793	44,267	40,118	39,900	44,312
Operating Profit	5,627	4,792	3,958	4,668	6,480	6,392	5,217	6,015
OPM %	15.3%	13.2%	10.9%	12.4%	13.9%	15.2%	12.2%	13.4%
Net Profit	2,722	2,268	1,100	1,844	2,973	2,767	1,498	2,233
EPS	₹20.69	₹18.25	₹5.86	₹13.47	₹22.22	₹20.91	₹8.16	₹15.28

Operating performance shows volatility: Q3 FY26 revenue rose to ₹44,312 crore from ₹39,900 crore in Q2 FY26, but net profit declined to ₹2,233 crore from ₹2,767 crore in Q1 FY26, likely due to margin pressure or cost structure. OPM improved to 13.4% from 12.2% sequentially, suggesting operational efficiency gains. However, NP and EPS dipped from Q1 FY26 levels, indicating that growth is not translating into proportional profitability. The trend reflects a stabilization after earlier volatility, with margins holding steady despite macro pressures.

🔮 Management Outlook & What's Next

Management has not provided explicit forward guidance in the reviewed filings beyond operational updates and dividend policy. The focus remains on capital allocation through dividends and strategic investments, such as the recent stake increase in Aditya Birla Capital. No commentary on future revenue or margin expectations was included in the latest disclosures. Investor focus is on execution of ongoing strategies and compliance with regulatory timelines, such as TDS documentation for dividends.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

Item	2023-2024	2023-2024	2024-2025	2024-2025	2025-2026
Equity Capital	132	133	134	136	136
Reserves	83,039	88,520	92,784	97,373	99,482
Borrowings	1.20 L Cr	1.35 L Cr	1.56 L Cr	1.84 L Cr	2.03 L Cr
Total Liabilities	2.41 L Cr	2.74 L Cr	3.03 L Cr	3.43 L Cr	3.68 L Cr
Fixed Assets	65,692	69,505	77,817	1.04 L Cr	1.08 L Cr
Investments	70,958	82,818	92,701	92,709	97,892
Total Assets	3.72 L Cr	4.13 L Cr	4.48 L Cr	5.01 L Cr	5.30 L Cr

The balance sheet shows a significant rise in borrowings to ₹2.03 L Cr in FY26 from ₹1.84 L Cr in FY25, while equity remains flat at ₹136 Cr. Total assets grew to ₹5.30 L Cr, up from ₹5.01 L Cr, indicating increased leverage to fund asset expansion or investments. Reserves increased to ₹99,482 Cr, suggesting retained earnings are being absorbed into capital. The capital structure remains heavily debt-dependent, with limited equity cushion, raising concerns about financial flexibility amid rising interest rate risks.

💰 Cash Flow Statement (₹ Cr)

Item	2020-2021	2020-2021
Operating	+7,777	+14,701
Investing	-2,564	-7,134
Financing	-6,223	-8,014
Net Cash Flow	—	—

⚖️ Peer Comparison — Cement & Cement Products

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
UltraTech Cement Limited	3.38 L Cr	44.1	12.3%	10.8%	0.33
Grasim Industries Limited	2.00 L Cr	21.1	4.9%	4.6%	1.88
Ambuja Cements Limited	1.07 L Cr	23.3	4.6%	7.7%	0.00
SHREE CEMENT LIMITED	90,094	73.6	—	—	—
JK Cement Limited	42,219	58.6	—	—	—
Dalmia Bharat Limited	32,402	57.5	—	—	—
ACC Limited	25,592	12.0	11.0%	10.4%	0.00
The Ramco Cements Limited	21,650	57.2	—	—	—
JSW Cement Limited	16,793	0.0	—	—	—
The India Cements Limited	12,401	-56.7	—	—	—

🔗 Peer Stock Analyses

ULTRACEMCO AMBUJACEM SHREECEM JKCEMENT DALBHARAT

⚠️ Risk Factors

1. High debt-to-equity (1.88) raises vulnerability to interest rate hikes and liquidity constraints. 2. Low ROE (4.6%) and ROCE (4.9%) reflect weak capital efficiency, limiting reinvestment capacity. 3. Dividend dependency may pressure cash flows if profitability remains volatile. 4. Margin compression in core cement business could persist due to overcapacity and pricing pressure, with no clear recovery path disclosed.

📋 Recent Filings

🧠 Analyst's Read

Grasim remains a cash-generative but stagnant player in a capital-intensive sector, with modest growth and high leverage. Investors should monitor margin trends, debt servicing capacity, and execution of strategic stakes in affiliated entities. The next catalyst will be Q2 FY27 results and any update on capital allocation strategy beyond dividend continuity.

Based on filing content and financial data. Not a recommendation.

✨ Deep Dive with AI on GRASIM

Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-07-14.

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