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Grasim Industries Ltd. (GRASIM) AI Stock Analysis
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Grasim Industries Ltd.
(NSE:GRASIM)
The score is held back primarily by weak and volatile cash generation and higher leverage despite solid revenue growth and decent operating margins. Technicals are supportive with price trading above key moving averages and positive momentum indicators. Recent earnings-call commentary was upbeat on growth platforms and leverage discipline, but valuation is stretched (high P/E) and paints-margin pressures plus other near-term headwinds temper the overall outlook.
Grasim Industries Ltd. (GRASIM) vs. iShares MSCI India ETF (INDA)
- Market Cap
- INR 2.04T
- Dividend Yield
- 0.34%
- Average Volume (3M)
- 22.77K
- Price to Earnings (P/E)
- 35.5
- Beta (1Y)
- 1.04
- Revenue Growth
- 20.48%
- EPS Growth
- 34.81%
- Country
- India
- Employees
- 28,259
- Sector
- General
- Sector Strength
- 55
- Industry
- Construction Materials
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 Viscos...
How the Company Makes Money
Grasim makes money primarily by manufacturing and selling products across multiple operating segments. (1) Fibre and related products: A major revenue stream comes from producing and selling viscose staple fibre and other fibre products to textile ma...
Grasim Industries Ltd. Earnings Call Summary
The call presented a strong set of operational and financial achievements across core and new businesses: record consolidated revenue (+21% YoY), robust standalone growth (+28% YoY) with EBITDA doubling, major traction in paints (+64% YoY) and B2B e-commerce (+75% YoY) and solid results in cement, chemicals and financial services. Key growth investments (Lyocell expansion, paint capacity, Pivot scale) and improving leverage (consolidated net debt/EBITDA 1.45x) underscore a positive transformation trajectory. Near-term challenges include raw material cost shocks (notably in paints), maintenance-driven volume dips in some segments, timing-related standalone net debt increase, and geopolitical/supply-chain volatility. On balance, the highlights materially outweigh the lowlights, reflecting strong momentum with manageable near-term headwinds.
Q1-2027 Updates
Positive Updates
Negative Updates
Company Guidance
Management reiterated aggressive growth and profitability targets across businesses: consolidated Q1 FY27 revenue was INR 48,716 crore (+21% YoY) with a near‑INR 50,000 crore quarterly run‑rate (two‑year CAGR ~25%) and 24 consecutive quarters of YoY growth; standalone Q1 revenue was INR 11,795 crore (+28% YoY) and standalone EBITDA rose 107% to INR 1,094 crore. Key business guidances include Birla Opus aiming for a INR 10,000 crore brand by FY28 after Q1 paints revenue of INR 1,661 crore (+64% YoY, +17% QoQ), 12,100 towns covered, 55,000+ dealers, 1,450+ exclusive outlets, 1,332 million Lpa capacity and premium/luxury contributing ~65% of value; Birla Pivot at INR 2,548 crore Q1 (+75% YoY) is on track for EBITDA breakeven by exit FY27 with an annualized run‑rate >INR 10,000 crore; cellulosic expansion comprises a Phase‑1 INR 1,350 crore (55,000 TPA) and Phase‑2 INR 3,094 crore (110,000 TPA). Other numeric highlights/guidance: chemicals Q1 revenue INR 2,640 crore (ECU realization INR 37,955/t, caustic ~US$483/t in SE Asia) and chlorine integration to ~68% by FY27 exit; cement added 8.7 mt capacity this quarter to 205.5 mt and consolidated volumes were 41.31 mt (+12% YoY) with EBITDA INR 5,146 crore (+12%); Aditya Birla Capital lending ~INR 220,000 crore (+32%) and housing finance >INR 50,000 crore (+50%); group standalone CapEx FY27 ~INR 3,157 crore (Q1 spend INR 375 crore), planned renewables equity from Grasim <INR 1,000 crore this year, royalty of 0.25% of standalone revenue from June (≈INR 100 crore impact, cap INR 225 crore), and consolidated net debt/TTM EBITDA down to 1.45x (target to keep net debt <2x).
Grasim Industries Ltd. Financial Statement Overview
Summary
Income statement shows steady revenue growth and generally healthy operating margins, but net margin is thin/volatile. Balance sheet risk has risen with materially higher debt and higher debt-to-equity (~2.2x by FY2026) alongside modest ROE. Cash flow is the main weakness: operating cash flow and free cash flow are frequently negative and volatile, reducing earnings quality confidence.
Income Statement
67PositiveBalance Sheet
46NeutralCash Flow
33Negative| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.84T | 1.75T | 1.48T | 1.31T | 1.18T | 957.01B |
| Gross Profit | 834.08B | 789.22B | 859.41B | 765.54B | 663.79B | 561.05B |
| EBITDA | 358.35B | 373.43B | 282.86B | 272.03B | 215.89B | 205.61B |
| Net Income | 56.94B | 49.66B | 37.06B | 56.24B | 68.27B | 75.50B |
Balance Sheet | ||||||
| Total Assets | 0 | 5.70T | 5.01T | 4.13T | 3.37T | 2.89T |
| Cash, Cash Equivalents and Short-Term Investments | 229.71B | 323.26B | 250.45B | 270.06B | 224.44B | 221.34B |
| Total Debt | 0 | 2.28T | 1.86T | 1.39T | 1.03T | 747.44B |
| Total Liabilities | -1.70T | 4.00T | 3.43T | 2.74T | 2.14T | 1.73T |
| Stockholders Equity | 1.70T | 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. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:GRASIM, the sentiment is Neutral. The current price of 2963.45 is above the 20-day moving average (MA) of 2914.15, below the 50-day MA of 3112.18, and below the 200-day MA of 2975.91, indicating a neutral trend. The MACD of -49.33 indicates Negative momentum. The RSI at 47.83 is Neutral, neither overbought nor oversold. The STOCH value of 76.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:GRASIM.
Grasim Industries Ltd. Peers Comparison
Overall Rating
IN:ULTRACEMCO64Neutral
IN:AMBUJACEM63Neutral
IN:SHREECEM62Neutral- IN:GRASIM59Neutral
IN:ACC54Neutral
IN:DALBHARAT42Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| IN:ULTRACEMCO | 64Neutral | INR 3.25T | 36.91 | ― | 2.17% | 17.79% | 18.30% |
| IN:AMBUJACEM | 63Neutral | INR 865.96B | 30.72 | ― | 0.57% | 5.64% | -50.36% |
| IN:SHREECEM | 62Neutral | INR 832.35B | 52.40 | ― | 0.65% | 14.32% | -7.88% |
| IN:GRASIM | 59Neutral | INR 2.02T | 35.51 | ― | 0.34% | 20.48% | 34.81% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| IN:ACC | 54Neutral | INR 212.26B | 24.05 | ― | 0.66% | 7.96% | -73.56% |
| IN:DALBHARAT | 42Neutral | INR 248.47B | 50.97 | ― | 0.68% | 6.14% | -56.44% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| IN:GRASIM | Grasim Industries Ltd. | 2963.45 | 68.35 | 2.36% | |
| IN:ACC | ACC Limited | 1130.30 | -728.15 | -39.18% | |
| IN:AMBUJACEM | Ambuja Cements Limited | 348.50 | -226.00 | -39.34% | |
| IN:DALBHARAT | Dalmia Bharat Ltd. | 1324.70 | -745.52 | -36.01% | |
| IN:SHREECEM | Shree Cement Limited | 23069.05 | -4858.94 | -17.40% | |
| IN:ULTRACEMCO | UltraTech Cement Limited | 11050.10 | -663.85 | -5.67% |
Grasim Industries Ltd. Corporate Events
Grasim Says Quashed Tax Reassessment Carries No Material Impact
Grasim Industries has clarified that a Bombay High Court order quashing an Income Tax Department reassessment notice related to its participation in Vodafone Idea’s 2019-20 rights issue does not pertain to any confirmed tax demand. The company...
Grasim Begins Commercial Output at New Epichlorohydrin Plant in Gujarat
Grasim Industries Ltd. has started commercial production at its new epichlorohydrin manufacturing plant in Vilayat, Gujarat, effective 21 October 2026. The facility, with an installed capacity of 50,000 tonnes per annum, marks a strategic expansion o...
Grasim Reports Customs Search at Fibre Unit, Says No Material Impact
Grasim Industries has disclosed that customs authorities in Indore conducted a search at its cellulosic staple fibre manufacturing unit in Nagda under Section 105 of the Customs Act. The search, focused on import‑export records, began on Septem...
Grasim Shareholders Clear All Resolutions at 79th AGM Held Virtually
Grasim Industries Ltd. held its 79th Annual General Meeting on 21 August 2026 via video conference and other audio-visual means, with remote e-voting conducted from 17 to 20 August for over 2.6 lakh shareholders on record. All items of business propo...
Grasim Appoints Deloitte as Joint Statutory Auditor for Five-Year Term
Grasim Industries Ltd. shareholders at the 79th Annual General Meeting have approved the appointment of Deloitte Haskins & Sells Chartered Accountants LLP as a Joint Statutory Auditor. The firm will serve a first term of five consecutive years, f...
Grasim Industries Publishes Q1 FY27 Earnings Call Audio for Investors
Grasim Industries Ltd. has announced that the audio recording of its earnings call held on August 12, 2026, discussing unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, has been made available on the company...
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.
Date of analysis: Aug 19, 2026