Grasim Industries reported a 41% year-on-year (YoY) drop in net profit for the third quarter, reaching ₹899 crore. The decline was mainly due to higher interest and depreciation costs resulting from investments in the building materials sector.
Revenue and EBITDA Performance
Despite the profit drop, the company’s revenue from operations grew by 9% YoY to ₹34,793 crore. However, EBITDA fell by 9% YoY to ₹4,668 crore, mainly because of lower cement business earnings and initial investments in Grasim’s paints segment.
Segment-Wise Performance
Cellulosic Fibres
- Revenue rose 6% YoY to ₹3,934 crore.
- EBITDA declined 18% YoY to ₹331 crore due to higher input costs.
- Prices in China remained steady at $1.65/kg, but production issues at the Excel Plant in Kharach and seasonal demand slowdown affected sales, which remained at 205 KT.
Chemicals Business
- Revenue increased 12% YoY to ₹2,226 crore.
- EBITDA grew 25% YoY to ₹329 crore, supported by better Caustic Soda prices and improved profitability in Chlorine Derivatives.
- An oversupply of Chlorine resulted in weak prices, leading to just an 8% YoY rise in ECU realisations to ₹34,041/ton.
- Caustic Soda sales volume grew marginally by 1% YoY due to power supply issues at the Vilayat plant.
Building Materials
- Revenue increased 10% YoY to ₹18,784 crore, driven by growth in businesses like Birla Opus and Birla Pivot.
- Lower cement prices and investments in the Birla Opus paints brand led to a drop in segment EBITDA to ₹2,806 crore.
Expansion Plans
Grasim’s Board has approved a ₹1,350 crore investment to expand Lyocell production capacity at its Harihar plant in Karnataka. The first phase (55K TPA) will be completed by mid-2027, bringing the company’s total Lyocell capacity under the ‘Birla Excel’ brand to 153K TPA. This will further strengthen Grasim’s position in the eco-friendly speciality fibre market.
About Grasim Industries Limited
Grasim Industries is the flagship company of the Aditya Birla Group and one of India’s largest private sector companies. Its main businesses include viscose staple fibre (VSF), caustic soda, speciality chemicals, and rayon-grade wood pulp (RGWP), with manufacturing plants in multiple locations. The company also operates in other sectors like fertilisers and textiles.
Grasim Industries share price is trading at ₹2,490.25, up 0.69% (+₹17.00) on February 11 at 1:30 PM IST. The stock opened at ₹2,460.00, reaching a high of ₹2,542.00 and a low of ₹2,456.05 during the session.
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