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Grasim Industries Ltd.
(GRASIM)
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Rating:59Neutral
Price Target:
₹3,425.00
▲(20.66% Upside)
Action:Reiterated
Date:08/19/26
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.
Positive Factors
Consistent revenue growth
Sustained revenue expansion across the portfolio indicates broadening business scale and continuing customer demand. The long run of year-on-year growth supports confidence that Grasim is building durable operating momentum rather than relying on a single quarter.
Negative Factors
Volatile cash generation
Repeated negative operating and free cash flow weakens the quality of reported earnings and can limit internally funded investment. Persistent working-capital demands or heavy reinvestment may increase reliance on borrowing and reduce financial flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent revenue growth
Sustained revenue expansion across the portfolio indicates broadening business scale and continuing customer demand. The long run of year-on-year growth supports confidence that Grasim is building durable operating momentum rather than relying on a single quarter.
Read all positive factors
Grasim Industries Ltd. (GRASIM) vs. iShares MSCI India ETF (INDA)
Market Cap
₹2.25T
Dividend Yield0.3%
Average Volume (3M)36.01K
Price to Earnings (P/E)39.6
Beta (1Y)1.01
Revenue Growth20.48%
EPS Growth34.81%
CountryIN
Employees28,259
SectorGeneral
Sector StrengthN/A
IndustryConstruction Materials
Share Statistics
EPS (TTM)83.95
Shares Outstanding680,580,570
10 Day Avg. Volume12,971
30 Day Avg. Volume36,009
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
₹3,845.00Price Target Upside35.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)41.84
Revenue Forecast (FY)₹487.18B
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 industrial and consumer-facing materials across multiple verticals. (1) Cellulosic fibres: It generates revenue by producing viscose staple fibre (VSF) and related products and selling them...
Grasim Industries Ltd. Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 16, 2026
Earnings Call Sentiment Positive
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.Positive Updates
Record Consolidated Revenue and Consistent Growth
Consolidated revenue reached INR 48,716 crore in Q1 FY27, up 21% YoY; two-year quarterly revenue run-rate increased ~1.5x (two-year CAGR ~25%). This marks the 24th consecutive quarter of YoY revenue growth.
Negative Updates
Raw Material Cost Shock and Margin Pressure in Paints
Birla Opus absorbed an unprecedented raw material cost shock; cumulative price increase taken in Q1 was ~8.8% (with additional impact flowing into Q2). Raw-material inflation (COGS) increased ~20–25% at peak months, pressuring margins and slowing profitability recovery despite narrowing losses.
Read all updates
Q1-2027 Updates
Positive
Negative
Record Consolidated Revenue and Consistent Growth
Consolidated revenue reached INR 48,716 crore in Q1 FY27, up 21% YoY; two-year quarterly revenue run-rate increased ~1.5x (two-year CAGR ~25%). This marks the 24th consecutive quarter of YoY revenue growth.
Read all positive 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
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 | 1.84T | 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 | 276.43B | 267.09B | 211.57B | 201.91B |
| Net Income | 56.94B | 49.66B | 37.06B | 56.24B | 68.27B | 75.50B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 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 | 0.00 | 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. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ₹3.34T | 39.30 | ― | 2.12% | 19.07% | 21.21% | |
68 Neutral | ₹1.01T | 22.88 | ― | 0.49% | 10.70% | 1.03% | |
68 Neutral | ₹328.01B | 35.19 | ― | 0.52% | 7.60% | -0.22% | |
63 Neutral | ₹864.75B | 52.80 | ― | 0.63% | 12.63% | 9.64% | |
62 Neutral | ₹241.02B | 12.66 | ― | 0.58% | 15.35% | -21.06% | |
59 Neutral | ₹2.25T | 39.57 | ― | 0.30% | 20.48% | 34.81% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:GRASIM
Grasim Industries Ltd.
3,313.20
519.74
18.61%
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1,283.45
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IN:AMBUJACEM
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405.50
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1,748.75
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23,967.10
-6,358.12
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IN:ULTRACEMCO
UltraTech Cement Limited
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-1,065.96
-8.59%
Grasim Industries Ltd. Corporate Events
Grasim Industries Publishes Q1 FY27 Earnings Call Audio for Investors
Aug 12, 2026
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 comp...
Grasim Industries and Group Firms Schedule Virtual AGMs With Remote E-Voting
Jul 21, 2026
Grasim Industries has announced that its 79th Annual General Meeting will be held on August 21, 2026 via video conferencing and other audio-visual means, with formal notices published in national English and regional Hindi newspapers. The move ref...
Grasim Revises Book Closure Window, Confirms Dividend Record Date
Jul 14, 2026
Grasim Industries Ltd., part of the Aditya Birla Group, operates as a diversified conglomerate with interests spanning manufacturing and related industrial businesses from its bases in Mumbai and Nagda, Madhya Pradesh. The company is listed on maj...
Grasim lifts stake in Aditya Birla Capital via Rs 2,880-crore share issue
Jun 23, 2026
Grasim Industries Ltd. has increased its stake in Aditya Birla Capital Limited by participating in a preferential issue of equity shares, investing about Rs 2,880 crore for 8,08,94,331 shares at Rs 356.02 per share including premium. Following thi...
Grasim Approves Rs 3,094 Crore Lyocell Expansion at Harihar Plant
Jun 8, 2026
Grasim Industries’ board has cleared a Rs 3,094 crore capital expenditure to expand Lyocell, a third-generation cellulosic staple fibre, at its Harihar facility in Karnataka. The project builds on an earlier phase and will add 110,000 tonnes...
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.