Grasim profit falls 35% as AVNB charge offsets revenue growth

Grasim Industries Limited reported consolidated net profit of Rs 1,029.42 crore for the quarter ended 30 September 2026, down 34.7% from Rs 1,576.32 crore a year earlier, as a Rs 766.73 crore charge related to Canadian joint venture AV Group NB Inc offset a 25.6% increase in revenue from operations.

How did Grasim's quarterly profit and revenue change?

Grasim's quarterly revenue rose while reported profit declined. Revenue from operations increased to Rs 50,105.18 crore in the quarter ended 30 September 2026 from Rs 39,899.58 crore in the restated quarter ended 30 September 2025, and total income, including other income, rose to Rs 50,438.79 crore from Rs 40,244.84 crore.

Net profit for the September 2026 quarter fell to Rs 1,029.42 crore from Rs 1,576.32 crore a year earlier. Profit before tax nevertheless increased to Rs 2,695.92 crore from Rs 2,588.34 crore, while total tax expense rose to Rs 1,666.50 crore from Rs 1,012.02 crore.

On a sequential basis, Grasim's revenue from operations increased 2.9% from Rs 48,716.20 crore in the quarter ended 30 June 2026. Net profit fell from Rs 3,846.28 crore in that preceding quarter, as profit before exceptional items and tax declined to Rs 3,468.94 crore from Rs 5,196.37 crore and exceptional losses increased to Rs 773.02 crore from Rs 13.25 crore.

What caused Grasim's September 2026 exceptional loss?

Grasim's September 2026 exceptional loss was primarily caused by a Rs 766.73 crore impairment and provision related to AV Group NB Inc, or AVNB. AVNB, a Grasim joint venture, temporarily idled its dissolving-grade pulp mill in Nackawic, New Brunswick, Canada, after assessing continuing challenges, prevailing market conditions and broader macroeconomic factors.

The AVNB amount comprised Rs 128.72 crore of impairment against the carrying value of Grasim's equity-share and preference-share investment, plus a Rs 638.01 crore provision towards estimated exposure. Grasim also reported a Rs 6.29 crore loss on sale of assets by UltraTech Cement Limited, taking total exceptional loss for the quarter to Rs 773.02 crore.

The comparable September 2025 quarter had no exceptional item. In the June 2026 quarter, the Rs 13.25 crore exceptional loss reflected a Rs 43.23 crore provision for disputed liabilities pertaining to prior periods by UltraTech Cement Limited, partly offset by a Rs 29.98 crore gain on sale of assets.

Which Grasim segments drove quarterly revenue and results?

Building Material remained Grasim's largest revenue segment, reporting Rs 27,377.81 crore in the September 2026 quarter. The segment, which includes cement, paints and business-to-business e-commerce, recorded revenue above Rs 22,253.32 crore a year earlier but below Rs 28,835.40 crore in the June 2026 quarter.

Building Material's segment result was Rs 3,510.47 crore, compared with Rs 2,949.60 crore a year earlier and Rs 5,002.30 crore sequentially. Financial Services generated Rs 13,990.35 crore of revenue and a Rs 1,842.45 crore segment result, both higher than the Rs 10,569.31 crore revenue and Rs 1,237.11 crore result reported a year earlier.

Cellulosic Fibres posted revenue of Rs 5,343.50 crore, up from Rs 4,149.39 crore in the September 2025 quarter, and its segment result increased to Rs 521.51 crore from Rs 349.90 crore. Chemicals revenue rose to Rs 2,758.95 crore from Rs 2,398.62 crore, but its segment result declined to Rs 325.54 crore from Rs 365.01 crore.

How did Grasim perform in the six months ended September 2026?

Grasim's revenue from operations for the six months ended 30 September 2026 rose 23.5% to Rs 98,821.38 crore from Rs 80,017.66 crore in the restated prior-year period. Profit before tax increased to Rs 7,879.04 crore from Rs 6,425.47 crore, after exceptional losses of Rs 786.27 crore in the latest half year.

Six-month net profit increased 12.2% to Rs 4,875.70 crore from Rs 4,346.95 crore. However, profit attributable to Grasim's owners declined to Rs 1,911.83 crore from Rs 2,015.06 crore, while non-controlling interests accounted for Rs 2,963.87 crore of the latest six-month consolidated profit.

Basic earnings per share for the six months was Rs 28.19, compared with Rs 29.70 in the restated comparable period. For the September 2026 quarter, basic earnings per share was negative Rs 3.45 because Rs 234.08 crore was attributable as a loss to Grasim's owners, while Rs 1,263.50 crore of consolidated profit was attributable to non-controlling interests.

Conclusion

Grasim's September 2026 results show revenue growth across its five reported segments, led by Rs 27,377.81 crore in Building Material revenue and Rs 13,990.35 crore in Financial Services revenue. Yet the Rs 766.73 crore AVNB charge, together with higher tax expense and lower sequential segment results, coincided with a 34.7% year-on-year decline in consolidated net profit to Rs 1,029.42 crore.

The next disclosed matter to watch is AVNB's temporarily idled Nackawic pulp mill and the proposed acquisition of Solenergi Power Private Limited by Aditya Birla Renewables Limited. The Competition Commission of India approved the proposed acquisition on 30 October 2026, but it was not completed as at 30 September 2026, so Grasim had not included its effect in the reported results.