Grasim Industries Q3 FY26 Revenue Hits Record ₹44,312 Cr

Introduction

Grasim Industries, the flagship company of the Aditya Birla Group, announced a robust financial performance for the third quarter of fiscal year 2026. The company achieved its highest-ever consolidated revenue, driven by strong growth across its diversified business segments, particularly in building materials and financial services. The results highlight a strategic push into new growth areas, which has impacted standalone profitability but fortified the consolidated balance sheet.

Consolidated Financial Highlights

For the quarter ending December 31, 2025, Grasim reported a consolidated revenue of ₹44,312 crore, marking a significant 25% year-on-year (YoY) increase. This growth was accompanied by a 33% YoY surge in earnings before interest, taxes, depreciation, and amortisation (EBITDA), which stood at ₹6,215 crore. The company's adjusted consolidated net profit attributable to owners grew by an impressive 42% YoY to ₹1,168 crore. This performance reflects improved operational efficiencies and strong demand across key sectors. The company also strengthened its financial position, with the consolidated Net Debt to TTM EBITDA ratio improving to 1.57x as of December 2025, down from 1.77x in March 2025.

The Standalone Story: A Contrasting View

While the consolidated figures painted a picture of strong growth, the standalone performance revealed the impact of strategic investments. Standalone revenue for the quarter rose by a healthy 28% YoY to ₹10,432 crore. However, the company reported a standalone net loss of ₹174.44 crore, widening from a loss of ₹168.65 crore in the same period last year. This loss is primarily attributed to the initial, pre-operating expenses associated with its new large-scale ventures, Birla Opus (Paints) and Birla Pivot (B2B E-commerce). Standalone EBITDA, however, grew 57% YoY to ₹585 crore, driven by strong performance in core businesses.

Building Materials: The Primary Growth Engine

The building materials segment, which includes cement, paints, and B2B e-commerce, was the standout performer. The segment's revenue grew 30% YoY to ₹25,173 crore, with EBITDA increasing by 33% to ₹3,737 crore. UltraTech Cement, a key subsidiary, saw its consolidated volumes grow 15% YoY to 38.87 million tons, with capacity reaching 194.06 million tonnes per annum (mtpa). The company is on track to achieve its target of 240.76 mtpa by March 2028.

Strategic Ventures Gaining Momentum

Grasim's new businesses are scaling up rapidly. The paints business, Birla Opus, is outpacing industry growth and is on track to reach 50,000 first-time billed dealers across more than 10,400 towns. As of December 31, 2025, the capital expenditure on the paints business reached ₹9,792 crore. Simultaneously, the B2B e-commerce platform, Birla Pivot, has crossed an annual revenue run-rate (ARR) of ₹8,500 crore, establishing itself as one of India's fastest-growing B2B ventures.

Core Businesses: Cellulosic Fibres and Chemicals

The Cellulosic Fibres segment delivered a strong performance, with revenue growing 9% YoY to ₹4,298 crore and EBITDA surging 48% YoY to ₹491 crore. This was driven by a 7% growth in sales volume, operating efficiencies, and favourable input costs. The Chemicals business reported a 5% YoY revenue growth to ₹2,345 crore. However, its EBITDA declined by 4% to ₹315 crore due to lower ECU (Electrochemical Unit) realisations, even as caustic sales volumes hit a record 313 KT.

Financial Services and Renewables

Aditya Birla Capital, the financial services arm, continued its consistent growth trajectory. Its revenue increased by 27% YoY, and PAT grew by 35% YoY to ₹912 crore. The total lending portfolio expanded by 30% YoY to ₹1,90,386 crore. The Renewables business also showed remarkable growth, with revenue increasing 82% to ₹221 crore, driven by higher capacities. The cumulative installed capacity reached 1.95 GWp.

Market Reaction and Outlook

Following the announcement of the results, shares of Grasim Industries were trading over 0.99% higher at ₹2,955 on the BSE. The company's performance underscores its successful diversification strategy. Looking ahead, Grasim is well-positioned to capitalize on India's economic momentum, supported by government focus on infrastructure, manufacturing, and rising incomes. The strategic investments in high-growth sectors like paints and B2B e-commerce are expected to become significant value drivers in the future, complementing the stable growth from its established core businesses.