Grasim Industries: How did the company’s Chemicals, Cement and Paints segments perform in Q3?

Synopsis: Grasim Industries Ltd reported a 29% YoY net profit growth to Rs. 2,233 crore in Q3FY26, with revenue rising 25% to Rs. 44,312 crore, driven by strong performance across cement, chemicals, cellulosic fibres, paints, B2B e-commerce, and financial services.

The shares of the flagship company of the Aditya Birla Group rank amongst the top publicly listed companies in India, with a presence across various businesses like cement, paint, chemical, etc and are in focus after its profit grew by 29% YoY and reported growth across its sectors.

With a market capitalisation of Rs. 1,99,393 cr, the shares of Grasim Industries Ltd were trading at 2,930 per share, down by 0.8% in today’s market session from its previous close of Rs. 2,954.50 per share. 

Q3 Results 

In Q3FY26, the company delivered strong year-on-year growth, with revenue from operations rising 25% to Rs. 44,312 crore from Rs. 35,378 crore, supported by improved operating performance. EBITDA increased 33% to Rs. 6,215 crore from Rs. 4,679 crore, with margins expanding to 14% from 13% last year. PBT grew a robust 41% to Rs. 3,251 crore from Rs. 2,308 crore. Consolidated PAT rose 29% to Rs. 2,233 crore from Rs. 1,734 crore over the same period.

On a quarter-on-quarter basis, revenue grew 11% from Rs. 39,900 crore to Rs. 44,312 crore, indicating steady sequential momentum. EBITDA rose 19% to Rs. 6,215 crore, with margins improving from 13% to 14%. PBT increased 30% to Rs. 3,251 crore from Rs. 2,510 crore. Consolidated PAT jumped 49% to Rs. 2,233 crore from Rs. 1,498 crore over the same period.

Growth across its sectors 

Cellulosic Fibres

EBITDA grew sharply by 48% YoY, driven by operating efficiencies and lower key input costs such as pulp and caustic. Revenue increased 9% YoY to Rs. 4,298 crore, supported by higher exports and a favourable product mix. However, CFY volumes remained flat due to subdued downstream demand, while realisations continued to be impacted by low-priced imports.

Chemicals

Revenue grew 5% YoY, driven by chlorine derivatives and the specialty chemicals businesses. EBITDA declined 4% YoY due to softness in ECU realisations and lower profitability in the specialty chemicals segment.  While specialty chemicals revenue increased 10% YoY, margins were impacted by higher input costs, particularly ECH, weighing on overall profitability.

Cement

Grey cement capacity of India and overseas reached 194.06 mtpa, with a clear expansion roadmap to 240.76 mtpa by March 2028. Revenue grew 23% YoY, supported by a 15% YoY increase in consolidated sales volumes to 38.87 million tons. 

Profitability improved meaningfully, with UltraTech EBITDA per ton rising to Rs. 1,051/Mt, up Rs. 140 YoY and Rs. 97 QoQ, reflecting better operating efficiency and cost control.

Paints

Market share gains continued, with revenue growth nearly three times the industry growth rate on a QoQ basis, underscoring strong competitive momentum. The business now offers one of the widest portfolios in the industry, with over 215 products and over 1,845 SKUs, catering to a broad spectrum of customer needs and market segments. 

Distribution strength continues to deepen, with the company on track to reach 50,000 first-time billed dealers and an increasing focus on improving throughput per dealer, supported by presence across more than 10,400 towns.

B2B E-Commerce

Annual revenue run-rate crossed the milestone of Rs. 8,500 crore, positioning the business well to surpass its FY27 guidance. Growth is being driven by faster traction in new categories such as non-ferrous metals, chemicals, and bitumen, resulting in a healthier and more diversified revenue mix. 

The Birla Pivot platform continues to be strengthened through expansion of the customer base, scaling up of credit programs, improvements in sourcing efficiency, and accelerated digitisation to support sustained growth.

Financial Services

The total lending portfolio across NBFC and HFC grew 30% YoY to Rs. 1,90,386 crore, reflecting healthy credit expansion. Total AUM across AMC, life, and health insurance increased 19% YoY to Rs. 5,98,166 crore, supported by steady inflows and product diversification. The D2C platform, ABCD, continued to see strong customer adoption, crossing 9.3 million customer acquisitions, highlighting growing digital engagement and scale.

Grasim Industries Ltd is a flagship company of the Aditya Birla Group, a leading Indian conglomerate with a strong presence in cement, chemicals, and textiles. Known for its innovation and sustainable practices, Grasim plays a key role in shaping India’s industrial landscape, delivering consistent growth while maintaining a focus on quality, efficiency, and social responsibility.

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