Grasim Industries Ltd. (IN:GRASIM)
:GRASIM
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Grasim Industries Ltd.
(GRASIM)
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Rating:59Neutral
Price Target:
₹3,296.00
▲(16.11% Upside)
Action:Reiterated
Date:05/22/26
The score is most constrained by financial quality—rising leverage and highly volatile/negative cash generation—despite strong top-line growth and decent operating margins. Technicals are supportive with a clear uptrend, but overbought signals increase near-term risk. Valuation is a headwind due to a high P/E and low yield, while the earnings call adds support via strong execution and growth targets tempered by cost inflation and margin/demand risks.
Positive Factors
Multi-segment Revenue Growth
Sustained multi-year revenue CAGR across consolidated and standalone businesses reflects durable demand and successful expansion. Broad revenue base across fibres, chemicals and building materials reduces single-market cyclicality and supports reinvestment capacity and scale advantages over the next 2–6 months and beyond.
Negative Factors
Rising Leverage, Weak Balance Sheet
Material increase in leverage reduces financial flexibility and raises interest expense sensitivity. With equity growth trailing borrowings and ROE in mid-single digits, higher debt constrains capital allocation, increases refinancing risk, and limits the company's ability to fund opportunistic investments or weather cyclical downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-segment Revenue Growth
Sustained multi-year revenue CAGR across consolidated and standalone businesses reflects durable demand and successful expansion. Broad revenue base across fibres, chemicals and building materials reduces single-market cyclicality and supports reinvestment capacity and scale advantages over the next 2–6 months and beyond.
Read all positive factors
Grasim Industries Ltd. (GRASIM) vs. iShares MSCI India ETF (INDA)
Market Cap
₹2.14T
Dividend YieldN/A
Average Volume (3M)38.85K
Price to Earnings (P/E)42.9
Beta (1Y)1.11
Revenue Growth19.76%
EPS Growth23.75%
CountryIN
Employees25,929
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)60.50
Shares Outstanding680,580,570
10 Day Avg. Volume8,381
30 Day Avg. Volume38,846
Financial Highlights & Ratios
PEG Ratio1.12
Price to Book (P/B)1.70
Price to Sales (P/S)1.00
P/FCF Ratio-5.26
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹3,530.00Price Target Upside24.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)24.29
Revenue Forecast (FY)₹483.27B
Grasim Industries Ltd. Business Overview & Revenue Model
Company Description
Grasim Industries Limited, established in 1947 and based in Mumbai, India, is a globally diversified conglomerate. Its expansive business activities cover fiber, yarn, pulp, chemicals, textiles, fertilizers, and insulators, structured into its Vis...
How the Company Makes Money
Grasim makes money primarily by manufacturing and selling products across multiple industrial segments. (1) Man-made cellulosic fibres (textiles): A significant revenue stream comes from producing and selling viscose staple fibre (VSF) and allied ...
Grasim Industries Ltd. Earnings Call Summary
Earnings Call Date:May 20, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Aug 07, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and top‑line momentum across multiple pillars: record consolidated and standalone revenues, rapid market share and distribution gains for Birla Opus, accelerating scale and near‑term profitability target for Birla Pivot, major cement capacity milestones and healthy performance in cellulosic fibres, renewables and textiles. These positives are tempered by significant raw material and packaging inflation (notably in paints), margin pressure in specialty chemicals, and uncertainty around demand elasticity after repeated price hikes. Management emphasized prioritizing market share and growth for new businesses while guiding a path toward profitability and disciplined capital allocation (including a targeted investment to retain control of Aditya Birla Capital). Overall, achievements and growth metrics meaningfully outweigh the headwinds, but near‑term margin risks and macro volatility require monitoring.Positive Updates
Record Consolidated and Standalone Revenues
Consolidated revenue reached a record INR 1,75,431 crores (~USD 18bn) for FY'26, registering a CAGR of 18% from FY'21–FY'26. Grasim stand-alone revenue also hit an all-time high of INR 41,039 crores, a 27% CAGR over the same period.
Negative Updates
Raw Material and Packaging Inflation in Paints
Decorative paints raw material and packaging costs (linked to crude derivatives) spiked materially due to geopolitical volatility and currency depreciation; management cited input cost escalation raising COGS impact 'as high as 20%–25%'. This has necessitated multiple price hikes.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Consolidated and Standalone Revenues
Consolidated revenue reached a record INR 1,75,431 crores (~USD 18bn) for FY'26, registering a CAGR of 18% from FY'21–FY'26. Grasim stand-alone revenue also hit an all-time high of INR 41,039 crores, a 27% CAGR over the same period.
Read all positive updates
Company Guidance
Management guidance was growth- and market-share centric across businesses with many numeric targets: consolidated FY‑26 revenue hit INR 1,75,431 crore (>$18bn, CAGR 18% FY21–26) and standalone INR 41,039 crore (CAGR 27%), while paints (Birla Opus) delivered Q4 like‑for‑like revenue +52% YoY (excluding CWIP +71%), doubled FY‑26 vs FY‑25, expanded decorative market share ~90 bps QoQ / 370 bps FY‑26, crossed 10% retail share in March 2026, and aims to be #2 and reach INR 10,000 crore profitable revenue in the third year of full‑scale ops (FY‑26 treated as year‑1); operational paint metrics include presence in 11,500 towns, 50,000+ dealers, 146 depots, 1,332 million litres p.a. capacity (24% industry), >37,000 active tinting machines, 1,200+ branded stores across 700+ towns, PaintCraft in 6,000+ PINs/400 towns, 218 products/1,850+ SKUs (42 new in FY‑26), 4.5 lakh active contractors, institution sales +43% QoQ / +212% YoY (10,000 sites in Q4; 45,000‑site pipeline across 650+ towns), retention of 10% free‑paint promotion, but raw‑material/packaging inflation has raised COGS by ~20–25% prompting phased price hikes (Jan–Feb +2–6%, further hikes in April to implement in Q1 FY‑27) and a caution that demand elasticity must be monitored; Pivot (B2B) revenue more than doubled in Q4, is close to the INR 8,500 crore revenue guidance, delivers to 5,000+ PINs/400+ cities and 5,000+ retail touchpoints and targets EBITDA breakeven by exit FY‑27; UltraTech cement crossed 200 Mtpa capacity in Apr‑26 (on track to 240+ Mtpa by Mar‑28), operating EBITDA/ton INR 1,253 and cumulative efficiency gains INR 185/ton (FY25–26), with a declared dividend of INR 240/share (~INR 4,000 crore cash inflow to Grasim); cellulosic fibres Q4 revenue INR 4,614 crore (+14% YoY), FY revenue INR 17,104 crore (+8%), Q4 EBITDA INR 588 crore (2x), FY EBITDA INR 1,751 crore (+15%) and Harihar lyocell Phase‑1 55,000 tpa of a proposed 110,000 tpa; chlor‑alkali at ~1.505→1.530 MTPA, caustic sales 321 kt Q4 / 1,232 kt FY‑26, specialty chemicals ~27% of mix, and Aditya Birla Capital’s INR 4,000 crore raise will see Grasim invest INR 2,880 crore to maintain a 52.3% stake—with dividends (Grasim final 500% = INR 10/sh.) and continuing capital allocation to support new businesses while monitoring macro/commodity volatility.Grasim Industries Ltd. Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
46
Neutral
Cash Flow
33
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.61T | 1.75T | 1.48T | 1.31T | 1.18T | 957.01B |
| Gross Profit | 867.25B | 789.22B | 859.41B | 765.54B | 663.79B | 561.05B |
| EBITDA | 310.35B | 373.43B | 276.43B | 267.09B | 211.57B | 201.91B |
| Net Income | 40.80B | 49.66B | 37.06B | 56.24B | 68.27B | 75.50B |
Balance Sheet | ||||||
| Total Assets | 5.30T | 5.70T | 5.01T | 4.13T | 3.37T | 2.89T |
| Cash, Cash Equivalents and Short-Term Investments | 293.64B | 323.26B | 250.45B | 270.06B | 224.44B | 221.34B |
| Total Debt | 3.08T | 2.28T | 1.86T | 1.39T | 1.03T | 747.44B |
| Total Liabilities | 3.68T | 4.00T | 3.43T | 2.74T | 2.14T | 1.73T |
| Stockholders Equity | 996.18B | 1.03T | 975.09B | 886.52B | 787.42B | 756.98B |
Cash Flow | ||||||
| Free Cash Flow | -155.55B | -334.36B | 33.29B | -302.04B | -247.21B | -15.50B |
| Operating Cash Flow | -80.15B | -178.10B | 205.10B | -107.19B | -126.85B | 70.38B |
| Investing Cash Flow | -75.01B | -178.03B | -239.82B | -231.13B | -136.87B | -35.43B |
| Financing Cash Flow | 153.77B | 335.23B | 429.78B | 339.08B | 264.69B | -67.33B |
Grasim Industries Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | ₹2.27T | 16.72 | ― | 0.58% | 15.28% | -16.31% | |
65 Neutral | ₹916.54B | 52.58 | ― | 0.73% | 8.61% | 55.29% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | ₹515.49B | 26.82 | ― | 0.77% | 11.15% | 127.12% | |
59 Neutral | ₹2.14T | 42.94 | ― | ― | 19.76% | 23.75% | |
58 Neutral | ₹2.50T | 23.17 | ― | 2.11% | 6.22% | 215.56% | |
56 Neutral | ₹1.06T | 23.15 | ― | 0.37% | 19.28% | 9.33% |
* Basic Materials Sector Average
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Grasim Industries Ltd. Corporate Events
Grasim Schedules Q4 FY26 Earnings Call With Global Investors
May 6, 2026
Grasim Industries Ltd., part of the Aditya Birla Group and listed in India and overseas, operates a diversified portfolio across core industrial sectors that are closely tied to the country’s infrastructure and economic growth. Its shares ar...
Grasim Grants 28,001 Stock Options and PSUs Under 2022 Employee Scheme
May 5, 2026
Grasim Industries Ltd. has granted a total of 28,001 equity-linked awards under its 2022 Employee Stock Option and Performance Stock Unit Scheme to eligible employees, comprising 18,722 stock options and 9,279 performance stock units. The scheme, ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.