Grasim's September-quarter profit nearly triples as revenue jumps 33%

what happened

Grasim Industries said its earnings for the September quarter almost tripled from a year earlier, reaching 2,306 crore. Revenue climbed 33% to a record 12,747 crore, according to Moody's. The company credited steady demand in cellulosic fibres, chemicals and textiles, which it said held up despite global turbulence, along with strong uptake for its paints and B2B e-commerce units.

EBITDA rose 158% to 4,615 crore, helped by 3,968 crore of cash dividend income from UltraTech Cement and a better product mix, though higher input costs weighed. Grasim stressed that standalone figures better reflect underlying performance than consolidated ones, because the UltraTech payout is eliminated on consolidation. Its chemicals arm saw sales up 15% but EBITDA down 11%, pressured by pricier power for caustic soda and weaker specialty chemicals margins.

Birla Opus paint revenue grew 35% to 1,337 crore on 20% volume growth, and management aims for a double-digit revenue market share in the second half of the fiscal year. On a consolidated basis, results swung to a deficit of 234.08 crore, down from a 594.52 crore gain recorded twelve months earlier.

why it matters

The UltraTech dividend is real cash for Grasim, but it is removed from consolidated accounts, so the headline profit jump and the group-level deficit tell different stories. Investors weighing Grasim's exposure to cement, cellulosic fibres and paints will want to see how much of the earnings growth holds up once that dividend is stripped out.

market impact

Grasim and UltraTech Cement: Grasim's strong reported profit leans heavily on dividend income from UltraTech.

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