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Grasim Industries Limited (GRASIM)

Construction Materials · Cement & Cement Products · NSE · Updated 16 June 2026

₹3,164.5 ↑ 16.99% (1Y)

🎯 Key Takeaways

Grasim Industries is transitioning from a traditional cement and chemicals conglomerate to a diversified high-margin specialty materials leader, with its decorative paints and sustainable fibre businesses driving structural growth. Management is actively pivoting capital allocation toward high-growth, high-margin segments like Birla Opus and Lyocell, supported by strong cash generation and disciplined reinvestment.
Revenue grew 11.1% QoQ to ₹44,312 in Q3FY26.
⚠️ Execution risk in scaling new businesses like Lyocell and paints, where break-even timelines (FY27–FY28) depend on timely capex commissioning and mark

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%

✨ Ask AI About GRASIM 📊 Interactive Charts

📖 The Story

Grasim Industries is transitioning from a traditional cement and chemicals conglomerate to a diversified high-margin specialty materials leader, with its decorative paints and sustainable fibre businesses driving structural growth. Management is actively pivoting capital allocation toward high-growth, high-margin segments like Birla Opus and Lyocell, supported by strong cash generation and disciplined reinvestment. The company is no longer just a cement play but a multi-business platform with clear pathways to EBITDA break-even in paints by FY27 and long-term capacity expansion in sustainable textiles.

📰 What's Happening

In FY26, Grasim reported consolidated revenue of ₹1,75,431 crores, up 27% YoY, driven by a 52% YoY surge in decorative paints (Birla Opus), which expanded market share by 370 bps to 370 bps of industry volume. The paints segment now operates at 1,332 million liters annual capacity (24% of industry) with 218 products and 1,850+ SKUs. Management announced a target of INR10,000 crore revenue from paints by FY28 and EBITDA break-even by FY27. A ₹3,094 crore capex was approved to expand Lyocell capacity by 110K TPA at Harihar, with first phase commissioning mid-2028. Aditya Birla Capital received a ₹4,000 crore equity raise and ₹2,880 crore investment to maintain 52.3% stake, while a final dividend of INR10 per share (500%, 63rd consecutive year) was declared. Q4FY26 delivered record revenue of ₹51,101 crores (+15% YoY) and EBITDA of ₹8,011 crores (+22% YoY), with standalone revenue reaching ₹41,039 crores (+30% YoY).

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

Grasim’s financial trajectory shows accelerating growth and margin expansion, particularly in its paints and financial services segments. Revenue grew from ₹33,563 crores in Q1FY25 to ₹51,101 crores in Q4FY26, with consolidated revenue rising 27% YoY in FY26. EBITDA surged 2x to ₹25,872 crores in FY26, and adjusted PAT rose 33% YoY to ₹5,203 crores. Operating margins improved to 13.4% in Q3FY26 from 10.9% in Q2FY25, reflecting operational efficiency and pricing power. The company’s standalone revenue grew 30% YoY in Q4FY26, indicating strong underlying momentum beyond consolidated results. This growth is being fueled by strategic capacity expansions and digital transformation in B2B e-commerce, which saw revenue more than double YoY.

🔮 Management Outlook & What's Next

Management has articulated a clear strategic roadmap: targeting INR10,000 crore revenue from paints by FY28 and achieving EBITDA break-even in the segment by FY27. Capex of ₹2,263 crores in FY26 is focused on expanding cement capacity to 240+ mtpa, scaling cellulosic fibre to 110 mtpa, and advancing sustainable textile initiatives like Lyocell. The company emphasized that future investments will prioritize cash flow stability and organic growth, with no major new business announcements until financial resilience is confirmed. Sustainability metrics, including 24% renewable power usage and 50% recycled water, are being integrated into long-term planning. Management also highlighted the importance of maintaining dividend continuity, with a 500% payout announced for FY26.

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 reflects a deliberate shift toward strategic reinvestment and capital efficiency. Total assets grew to ₹5.30 L Cr in 2025-26 from ₹5.01 L Cr in 2024-25, driven by investments in capacity expansion. Borrowings increased to ₹2.03 L Cr from ₹1.84 L Cr, indicating active leverage to fund growth initiatives in paints and sustainable fibres. Equity remains stable at ₹136 crores, but reserves expanded to ₹99,482 crores, underscoring retained earnings from strong profitability. The company is using a mix of internal accrual and debt to finance expansion, while maintaining a healthy equity base to support future dividend sustainability and stakeholder confidence.

💰 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. Execution risk in scaling new businesses like Lyocell and paints, where break-even timelines (FY27–FY28) depend on timely capex commissioning and market adoption. 2. Margin pressure in cement, which remains a volume-driven, low-margin segment, could offset gains from high-margin specialties if pricing power erodes. 3. Regulatory and ESG-related capital allocation shifts could impact funding availability for sustainability projects. 4. Over-reliance on Aditya Birla Capital’s performance and stakeholding stability introduces indirect exposure to group dynamics, though no immediate governance concerns are evident.

📋 Recent Filings

🧠 Analyst's Read

Grasim is undergoing a structural transformation with clear catalysts in paints and sustainable fibres, supported by strong cash flows and disciplined capital allocation. Investors should monitor the pace of Lyocell capacity ramp-up and whether paints achieve EBITDA break-even by FY27, as these will determine the sustainability of margin expansion. The company’s ability to balance growth investments with dividend continuity and debt management will be critical in maintaining investor confidence.

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 2026-06-16.