Grasim Industries Limited Q3 FY26 Earnings Call Summary

Summary

Grasim Industries Limited - Q3 FY26 Earnings Call Summary Wednesday, February 11, 2026, 11:00 AM IST

Event Participants

Executives 5 Hemant Kadel (CFO), Himanshu Kapania (MD & Business Head - Birla Opus), Jayant Dhobley (Business Head - Chemicals & CFY), Sandeep Komaravelly (CEO - Birla Pivot), Vadiraj Kulkarni (Business Head - Cellulosic Fibre)

Analysts 6 Amit Purohit, Naveen Sahadev, Nirav Jimudia, Pathanjali Srinivasan, Prateek Kumar, Rahul Gupta

Financials & KPIs

Geographic & Segment Commentary

• Birla Opus Paints: Established as the 3rd largest decorative player with 300 bps YoY revenue market share gain. Sales volume grew 70% YoY, crossing 500 million liters cumulatively. Focus is shifting from capacity building (6 plants commissioned) to productivity and variable cost optimization.
• Birla Pivot (B2B E-commerce): Reached ₹8,500 crores annualized revenue run rate, offering 40,000+ SKUs across 35 categories. The segment is digitizing fragmented procurement for MSMEs and large builders. Strategic focus remains on price transparency, assortment breadth, and integrated financing.
• Chemicals: Caustic soda volumes hit record highs, though EBITDA was slightly lower (-4% YoY) due to lower ECU realizations and ECH pricing volatility affecting specialty chemicals. Renewable energy share in the chemical segment reached an exit rate of ~23%.
• Financial Services (Aditya Birla Capital): Revenue grew 29% YoY with a total lending portfolio reaching ₹1.90 lakh crores. Announced a strategic partnership with Advent International for the housing finance business, valuing it at ₹19,250 crores.

Company-Specific & Strategic Commentary

• Birla Opus Distribution: Expanded reach to 10,400+ towns, covering 100% of population centers above 50,000. Currently operates 35,000 active tinting machines and is nearing 1,000 franchise-led “Paints Galleries.”
• Renewable Energy Scale-up: Aditya Birla Renewables secured a ₹3,000 crore investment commitment from Global Infrastructure Partners (BlackRock). The business is valued at ₹14,600 crore EV and targets scaling from 4.3 GW to over 10 GW peak capacity.
• Productivity & AI: Implementing AI-based analytics for contractor engagement and utilizing a unique track-and-trace system for secondary sales monitoring. Received IMS certification (ISO 9001, 14001, 45001) for all six paint plants within 18 months of operation.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Birla Opus Market Share & Growth

• Question: How will the company reach the ₹10,000 crore revenue target given current growth rates? (Naveen Sahadev)
• Answer: Growth is accelerating with 18-20% QoQ revenue increases; the gap with the #2 player has narrowed to 300 bps when including Birla White. Revenue is balanced with premium/luxury categories contributing 65% (Himanshu Kapania).

Pricing Strategy

• Question: What is the rationale behind the 2% to 6% price hikes in Jan/Feb? (Rahul Gupta)
• Answer: The move is intended to bridge the pricing gap with the market leader and test consumer/contractor response; there are no immediate raw material pressures (Himanshu Kapania).

Birla Pivot Profitability

• Question: When will the B2B e-commerce business reach breakeven? (Naveen Sahadev)
• Answer: The business is expected to exit FY27 at a breakeven level, driven by rapid scale and procurement re-engineering (Sandeep Komaravelly).

Chemicals & Export Outlook

• Question: How do trade deals with the US and EU impact the Epoxy business? (Nirav Jimudia)
• Answer: US trade deals and the India-Europe FTA are structural positives; Europe’s high energy/labor costs make Indian exports more competitive long-term (Jayant Dhobley).

Key Takeaway

Grasim Industries delivered a record performance in Q3 FY26, with consolidated revenue rising 25% YoY to ₹44,312 crores. The quarter was marked by the successful scaling of two new growth engines: Birla Opus Paints and Birla Pivot. Birla Opus achieved a 70% YoY volume growth, capturing significant market share to become the 3rd largest decorative player, while Birla Pivot surpassed an ₹8,500 crore ARR. Strategic capital raises in the Financial Services and Renewable segments (valuing the latter at ₹14,600 crore EV) have strengthened the balance sheet. Despite industry-wide pricing headwinds in paints and chemicals, Grasim maintained a healthy net debt-to-EBITDA of 2.1x. Management remains confident in achieving a ₹10,000 crore paint revenue target by FY28 and expects Birla Pivot to break even by the end of FY27, positioning the company as a diversified proxy for India’s infrastructure and consumption growth.