Grasim Industries Q2 Results: Net profit jumps 76% YoY to ₹553 crore, revenue improves 17%

Grasim Industries Limited today announced its financial results for the quarter ended September 2025, reporting a consolidated revenue of ₹39,900 crore, reflecting a 17% year-on-year increase compared to ₹34,223 crore in the same period last year, largely driven by growth in building materials and chemicals businesses.

At the operating level, consolidated EBITDA stood at ₹5,217 crore, up 29% year-on-year, mainly driven by higher profitability in the cement and chemicals businesses.

The Aditya Birla Company reported a consolidated net profit attributable to owners of the company at ₹553 crore for Q2FY26, up 76% from ₹315 crore in the same quarter last year (restated due to the Kesoram acquisition by UltraTech Cement).

Building materials and chemicals lead segmental growth in Q2

Despite monsoon-related demand weakness, the building materials segment reported revenue of ₹22,253 crore, up 28% year-on-year, driven by strong performance across the cement, paints, and B2B E-commerce businesses.

EBITDA rose 55% YoY to ₹2,950 crore, supported by robust performance in Cement (UltraTech), although partially offset by initial investments in ‘Birla Opus’ and ‘Birla Pivot’ as the company scales up its Building Materials business.

The company noted that the building materials segment continues to expand its capacities to cater to rising demand from the infrastructure and housing sectors.

Meanwhile, the chemicals business reported revenue of ₹2,399 crore, up 17% YoY, while EBITDA grew 34% YoY to ₹365 crore, driven by higher volumes in chlorine derivatives and improved ECU realizations.

Higher input prices impact Cellulosic Fibres segment

The Cellulosic Fibres segment reported revenue of ₹4,149 crore, up 1% year-on-year. EBITDA stood at ₹350 crore, down 29% YoY, primarily due to higher input prices absorbed by the company.

In China, operating rates averaged 89% in Q2FY26, higher than 86% in Q2FY25. Additionally, average inventory holding increased to 15 days compared to 8 days in Q2FY25, which, according to the company, led to a moderation in average CSF prices to $1.51/kg in Q2FY26. However, domestic CSF prices remained stable, supported by rupee depreciation.

CSF sales volume declined 5% YoY to 209 KT due to temporary logistics challenges at Vilayat, which the company stated have now been resolved.

Outlook

The company said it remains well-positioned to benefit from India’s broad-based economic momentum. With a diversified portfolio and strategic capital allocation across key sectors, Grasim expects to gain from the next phase of the country’s development.

The government’s “Viksit Bharat” vision—anchored in infrastructure expansion, revival in domestic manufacturing, formalisation of the financial ecosystem, and rising household incomes—is expected to drive sustained demand. Backed by strong fundamentals and forward-looking investments, Grasim said it is well placed to participate in India’s next growth cycle.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.