Grasim Industries Limited Earnings Summary — Q4 FY2026
Grasim Industries Achieves Record Quarterly Revenue and Sharp Profit Rebound in Q4 FY2026
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 4.7% sequentially in Q1 FY2027.
- Revenue of ₹48,716 Cr is 21.4% higher year-on-year.
- Revenue has compounded at 12.0% annualised over the last 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹2,146 Cr is 51.1% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 22.1% annualised across the period.
- Operating margin stands at 22.9% in Q1 FY2027.
- Operating margin expanded by 90 bps year-on-year.
- Over the last two years operating margin has expanded by 358 bps.
- PBT margin is 10.6%.
- Expense growth of 20.0% remained below revenue growth of 21.4%.
- Operating profit of ₹11,152 Cr is 26.4% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 74/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 48,716 | 51,101 | 44,312 | 39,900 | 40,118 | 44,267 | 35,378 | 34,223 | 34,610 | 37,727 |
| Expenses | Improving | 37,565 | 40,227 | 35,442 | 32,228 | 31,296 | 35,517 | 28,575 | 28,197 | 27,927 | 29,835 |
| Operating Profit | Accelerating | 11,152 | 10,874 | 8,870 | 7,671 | 8,822 | 8,750 | 6,804 | 6,026 | 6,682 | 7,892 |
| Operating Margin | Stable | 22.9% | 21.3% | 20.0% | 19.2% | 22.0% | 19.8% | 19.2% | 17.6% | 19.3% | 20.9% |
| Other Income | Volatile | 318 | 143 | 65 | 406 | 376 | 485 | 382 | 403 | 247 | -48 |
| Interest | Improving | 4,298 | 4,015 | 3,909 | 3,669 | 3,551 | 3,407 | 3,270 | 3,027 | 2,795 | 2,586 |
| Depreciation | Improving | 1,988 | 2,042 | 1,975 | 1,899 | 1,810 | 1,831 | 1,608 | 1,572 | 1,443 | 1,329 |
| Profit Before Tax | Accelerating | 5,183 | 4,960 | 3,051 | 2,510 | 3,837 | 3,996 | 2,308 | 1,830 | 2,691 | 3,928 |
| Tax | Improving | 1,337 | 1,276 | 818 | 1,012 | 1,067 | 1,023 | 574 | 847 | 625 | 1,207 |
| Net Profit | Volatile | 2,146 | 1,896 | 1,037 | 553 | 1,421 | 1,496 | 820 | 315 | 1,075 | 1,370 |
| Net Margin | Volatile | 4.4% | 3.7% | 2.3% | 1.4% | 3.5% | 3.4% | 2.3% | 0.9% | 3.1% | 3.6% |
Key Takeaways
- Consolidated revenue for the quarter reached a historic peak of ₹51,101 Cr, driven by strong growth in core segments.
- Net profit surged by 70.26% sequentially to ₹3,802 Cr, reflecting strong operating leverage.
- Operating margins expanded to 21%, recovering from a dip seen earlier in the fiscal year.
- Interest expenses continue to rise, reaching ₹4,015 Cr this quarter, reflecting the high debt load for business expansion.
- The paints division (Birla Opus) and ongoing cement volume growth remain pivotal to the consolidated performance.
- The balance sheet remains under pressure with consolidated borrowings expanding to ₹2,27,853 Cr by year-end.
- Despite high revenue growth, return ratios (ROE) remain subdued at approximately 5% on an annual basis.
- EPS for the quarter improved significantly to ₹28.77 compared to ₹15.23 in the previous quarter.
Management Guidance
Management focus remains on scaling the newly launched Paints business to a market leadership position while maintaining dominance in VSF and Chemicals.
Sentiment Shift
Improving
A significant sequential and yearly jump in bottom-line profitability and a record revenue performance outweigh concerns regarding rising interest costs.
Outlook
The outlook is constructive based on the recovery in chemical margins and volume growth in cement (UltraTech), though the debt-servicing capability amid massive capex remains a key monitorable.
From the Annual Report (Key Quotes)
“Management has shown the ability to scale businesses to market leadership (Cement, VSF, Caustic Soda).”
“The current phase is characterized by massive capex (₹31,000Cr+ in 2 years) which has temporary suppressed return ratios.”
“The recent pivot to the Paints industry is seen as a major test of execution.”
Official Quarterly Documents
This summary is AI-generated from Grasim Industries Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.