Increase in Q1 profits by 34% for Grasim due to improved selling prices
Grasim Industries' Paints Business Thrives Amid Competitive Pressures
Grasim Industries, a subsidiary of the Aditya Birla Group, has reported impressive financial results for the June quarter of the 2025-26 fiscal year (FY26). The company's decorative paints business, Birla Opus, has demonstrated strong growth trends, with double-digit quarterly revenue growth leading up to Q2 FY26.
According to the latest financial reports, Grasim Industries recorded a consolidated revenue of ₹40,529 crore for the June quarter, with an operating profit margin of 22%. This translates to an operating profit of ₹8,784 crore and a net profit of ₹2,767 crore. The impressive earnings per share (EPS) stood at ₹21.
Birla Opus, the decorative paints business under Grasim Industries, has managed to maintain growth despite competitive pressures, particularly in the southern markets where market share remains relatively low outside Kerala. The company's recent complaint against Asian Paints for alleged market dominance abuse indicates an active competitive stance in the market.
Despite a 20% year-on-year decline in EBITDA for the cellulosic fibres segment due to higher key input prices and high inventory, the overall performance of Birla Opus within Grasim Industries' Q2 FY26 results is robust. The trial production of water-based paints and emulsions has commenced at the sixth Birla Opus plant in Kharagpur, and the commercial launch of these products is on track by the end of Q2 FY26.
The company's capacity in the organised paints industry will reach 24% with an installed capacity of 1,332 million litres per annum, post the commercial launch. Grasim Industries' revenue for the June quarter was up 16% at ₹40,118 crore, and the chemical business reported a 16% increase in revenue and a 36% increase in EBITDA.
The building materials segment of Grasim Industries, which includes the cement business, also saw growth, with a 22% increase in revenue. The EBITDA for this segment grew by 48%, but was partially offset by initial expenses in the decorative paints business under Birla Opus.
The capital expenditure for the paint business stood at ₹9,555 crore till June-end. The company has introduced new product packaging and expanded its portfolio to 179 products with over 1,460 SKUs across six decorative paints product categories. The paint distribution network has expanded to over 8,000 towns.
The chemical business of Grasim Industries reported a 16% increase in revenue and a 36% increase in EBITDA. CSF prices for Grasim Industries fell to an average of $1.52 a kg in Q1 FY26, a 7% decrease year-on-year.
In summary, Birla Opus is experiencing strong growth trends and solid financial performance within Grasim Industries' Q2 FY26 results. The company's strategic initiatives, stable margins, double-digit revenue growth, and active competitive stance indicate a promising future for the decorative paints business in a competitive market environment.
- Grasim Industries, in the finance industry, attributes part of its Q2 FY26 success to the thriving performance of its paints business, Birla Opus.
- With a robust revenue growth of 16% in Q2 FY26, Grasim Industries inspects the potential to further invest in its expanding decorative paints business.
- Despite competitive pressures from industry giants like Asian Paints, Birla Opus continues to grow, solidifying its market position with strategic investments such as trial production of water-based paints.
- As Grasim Industries' Q2 FY26 results demonstrate, the ongoing growth of the paints subscription business, Birla Opus, positions the company as a significant contender in the competitive organised paints industry.
