GRASIM
Large CapGrasim Industries Limited
Diversified
Grasim Industries is a diversified Indian conglomerate with leadership positions in Cellulosic Fibres, Chemicals, Building Materials (Cement, Paints, B2B E-commerce), Financial Services, and other businesses. It positions itself as a proxy play on India's growth story, focusing on aspirational consumption, manufacturing, digital economy, renewables, financialization, infrastructure, and housing.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust needs verification, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Excellent · 90/100Rev +15% YoY · PAT +28% YoY · margin expansion · +15% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹51,101 Cr | +15.4% | +15.3% |
| EBITDA | ₹10,876 Cr | +24.3% | +22.6% |
| Operating margin | 21.0% | +100 bps | +100 bps |
| PAT | ₹3,802 Cr | +27.9% | +70.3% |
| PAT margin | 7.4% | +72 bps | +240 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Grasim reported strong Q4FY26 consolidated performance with revenue up 15% YoY to ₹51,101 Cr. and EBITDA up 22% YoY to ₹8,011 Cr., driven by robust growth across Cement, Paints, B2B E-commerce, and Cellulosic Fibres. FY26 consolidated revenue reached ₹1,75,431 Cr. and EBITDA ₹25,872 Cr.
The company delivered robust Q4FY26 and FY26 consolidated results, driven by strong volume growth and operational efficiencies across key segments like Cement, Paints, and B2B E-commerce. Strategic capacity expansions and market share gains in new businesses support the long-term growth thesis, despite some segment-specific headwinds.
Chemicals Revenue Breakup (Q4FY26)
Latest issuer-disclosed distribution across 3 reported categories.
Decorative Paints (Birla Opus)
Delivered sequential revenue growth of 19% & volume growth at 17% QoQ, with market share gains estimated at ~90 bps QoQ, nearing #2 position.
B2B E-commerce (Birla Pivot)
Revenue more than doubled YoY led by scale up across product categories, new customers and seasonally strong quarter.
Cement (UltraTech)
Total grey cement capacity crosses milestone of 200 MTPA in Apr-26; consolidated sales volume grew 9% YoY at 44.71 MnT, highest-ever.
Specialty Cellulosic Fibres
Specialty sales volume share improved to 26% in Q4FY26 compared to 21% in Q4FY25, with Lyocell capacity commissioning targeted by mid-2027.
Lyocell Capacity
Phase 1 capacity of 55 KTPA (total proposed capacity of 110 KTPA) of Lyocell is progressing well and commissioning is targeted by mid-2027.
Cement Capacity
Total grey cement capacity crosses milestone of 200 MTPA in Apr-26; on course to reach 240+ MTPA by Mar-28.
Chemicals Capacity Expansion
Chlor-Alkali projected capacity to 1,530 KTPA (25 KTPA expansion); Chlorine Derivatives projected capacity to 1,075 KTPA (79 KTPA expansion).
ECH and CPVC Plants
Both ECH and CPVC plants are progressing well and are under pre-commissioning stage.
Manufacturing Sector Growth
Manufacturing sector grew at an average of 5.1% in Q4FY26, higher than Q4FY25 growth rate of 4.2%.
Credit Offtake Improvement
Average Non-food bank credit growth of ~16.9% YoY in Q4FY26, compared to ~11.0% in Q4FY25.
Indian Decorative Paints Market
Estimated CAGR of >10% over the next decade, driven by housing demand, urbanization, premiumization, and growing aspirations.
B2B E-commerce Market Opportunity
Total Addressable Market (TAM) for raw materials in construction, chemicals & metals is >$200 bn by 2030.
Muted Downstream Demand (CFY)
CFY sales volumes and realisation remained stagnant, weighed down by muted downstream demand and continued influx of low-priced imports.
Higher Input Prices (Specialty Chemicals)
Specialty Chemicals profitability was impacted due to higher input prices, mainly ECH.
Merchandise Exports Decline
India Merchandise Exports in Q4FY26 down by 2.8% YoY to $112 bn, with Chemicals and Textiles exports also declining.
Input Cost Volatility
Strategic pricing actions undertaken in CY26 for Paints to offset raised input costs due to volatile geopolitical environment and rupee depreciation.
Import Competition
CFY business performance remains flat due to weak demand from textile value chain and lower realisations pressured by the influx of low-priced imports.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Q4FY26 results are compared YoY to account for seasonality in businesses like Building Materials and Textiles. QoQ comparisons are also relevant for assessing sequential momentum in new growth engines like Paints and B2B E-commerce, and for tracking operational efficiencies.
CSF Sales Volume
CSF total sales volumes stood highest-ever at 232 KT in Q4FY26, up 12% YoY, driven by stable domestic demand and higher exports. FY26 sales were 869 KT.
Specialty Fibres Sales Share
Specialty sales volume share improved to 26% in Q4FY26 compared to 21% in Q4FY25, led by higher exports.
Caustic Soda Sales Volume
Caustic sales volumes up 11% YoY in Q4FY26, stood highest-ever at 321 KT, driven by stable domestic demand. FY26 sales were 1,232 KT.
Chlorine Integration Levels
Chlorine Integration Levels (incl. Pipeline sales) stood at 64% in Q4FY26 and 67% for FY26.
New Businesses Investment Phase
'Birla Opus' and 'Birla Pivot' are in an investment phase, with a clear roadmap for profitable growth in the coming years.
Cement Capacity Target
Total grey cement capacity is on course to reach 240+ MTPA by Mar-28.
Chemicals Expansion & Integration
Evaluating additional capacities in-line with growing demand and further evaluating multiple downstream chlorine chemistries to increase chlorine integration.
Paints Market Share Resolve
The company maintains its resolve to sustain market share gains and deliver guided revenues despite price hikes.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Paints Revenue Market Share | Estimated >10% in March 2026, expanded ~90 bps QoQ. | Continued expansion of revenue market share and progress towards aligning with capacity share. |
| Cement Capacity Expansion | Crossed 200 MTPA in April 2026. | Progress towards the target of 240+ MTPA by March 2028. |
| Lyocell Capacity Commissioning | Phase 1 (55 KTPA) progressing well. | Successful commissioning by mid-2027. |
| Chlorine Integration Level | 67% for FY26 (incl. pipeline sales). | Reaching ~70% post commissioning and ramp-up of ongoing projects. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
56NeutralSMA20 +8.8% / mo · near 52W high
Technical chart
GRASIMdaily · 6M+12.7%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 61. Wait for confirmation.
- SMA20 rising (~8.2% over last month) — short-term momentum positive.
- RSI(14) at 61 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 3% off 52W high · 24% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Growth contributes 9/25 to the score.
- Cash flow contributes 3/10 to the score.
- Valuation contributes 3/30 to the score.
Main drags
- Altman Z is 1.1, in distress territory.
- Fair-value margin of safety is negative at -295.3%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 15th percentile of the scored universe and 24th percentile within Diversified. Main check: balance sheet trust is weak at 22/100.
Mixed Trust Lite: Promoter pledge is zero. Key concern: Operating cash flow is negative at ₹-17810 Cr.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Diversified: 24th pctile, median 63 · Large: 10th pctile, median 74
151 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸6 years of positive FCF.
- ▸4/4 latest quarters had positive YoY revenue growth.
- ▸4/4 latest quarters had positive YoY PAT growth.
Trust risks
- ▸Operating cash flow is negative at ₹-17810 Cr.
- ▸Debt/equity is 2.20.
- ▸Altman Z is 1.11.
- ▸ROE is low at 5.1%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 41.50
- P/B
- 2.04
- EV/EBITDA
- 9.96
- Market Cap
- 210597.00Cr
Profitability
- ROE
- 5.05%
- ROCE
- 8.07%
- ROA
- 1.81%
- Dividend Y
- 0.32%
Growth (CAGR)
- Revenue 5Y
- 18.00%
- EPS 5Y
- 3.00%
- Revenue 3Y
- 14.00%
- EPS 3Y
- -9.00%
Balance Sheet
- Debt/Equity
- 2.20
- Interest Coverage
- 2.40×
- Altman Z
- 1.11
- Book Value
- 1520.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 6/5
- OCF
- -17810.00 Cr
- EPS TTM
- 72.98
Shareholding
- Promoter Hold
- 43.73%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 85%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Diversified — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.