Grasim Industries reported a robust Q3 FY’26, driven by aggressive expansion in its new growth engines. The Paints Business (Birla Opus) accelerated revenue market share gains, expanding revenue by nearly 3x the industry rate. Birla Pivot’s B2B e-commerce business crossed an annualized revenue run rate of Rs. 8,500 crores, now targeting FY’27 breakeven. Consolidated revenue hit a quarterly high of Rs. 44,312 crores, up 25% YoY.
Q3 FY’26 Performance Overview
Grasim Industries concluded the calendar year 2025 on a high note, with the management expressing confidence heading into 2026. Consolidated revenue for the current quarter reached its highest ever at Rs. 44,312 crores, marking an impressive 25% year-on-year improvement, fueled by strong performance across building materials, financial services, chemicals, and fibers. Standalone revenue also accelerated, growing 28% YoY to reach Rs. 10,432 crores.
On a trailing twelve months (TTM) basis as of December 31, 2025, consolidated revenue stood at nearly Rs. 1,70,000 crores (14% growth YoY). Consolidated EBITDA grew by 33% YoY to Rs. 6,215 crores.
Birla Opus Paints: Accelerating Market Penetration
The Paints Business, Birla Opus, reaffirmed its position as the third largest decorative paints player. Despite the interim absence of its CEO, the existing team drove significant gains:
- Market Share: Revenue market share grew by more than 300 basis points YoY. The combined revenue gap with the existing No. 2 player (including Birla White Putty) is now reduced to 300 basis points.
- Volume Growth: Sales volume rose by 70% YoY. The business crossed the cumulative milestone of 500 million litres of paint sales earlier in January 2026.
- Reach: Presence expanded to over 10,400 towns, covering more than 75% of 10,000 to 50,000 population centers.
- Institution Sales: Grew by 40% quarter-on-quarter, with over 40,000 mid- and large-size projects currently in negotiation.
- Product Strategy: The portfolio now includes over 216 products and 1,848 SKUs. 40 new products were introduced this year, including the retail waterproofing line.
- Brand Recall: Birla Opus achieved double-digit ‘Top of mind’ brand recall in urban markets, positioning it as the 2nd most recalled paints brand based on internal studies.
- Pricing Action: The company implemented a 2% to 6% price rise across a range of products in January and February to test channel and consumer reaction.
Management stated that while industry volume growth (including Opus) is 11% to 12%, they anticipate the premium and luxury segments will continue to contribute a steady 65% of overall revenue. Profitability for the paint segment is targeted to reach a profitable #2 position within three years of full-scale operation (FY’28 target confirmation).
Birla Pivot: Ahead of Revenue Targets
The B2B e-commerce business, Birla Pivot, has significantly outperformed expectations.
- ARR: The business crossed an annualized revenue run rate (ARR) of Rs. 8,500 crores, on track to surpass the annual revenue target of Rs. 8,500 crores well ahead of the FY’27 guidance.
- Profitability Path: Management confirmed that the business is making good progress toward breakeven and currently estimates exiting FY’27 at a breakeven level, accelerating previous guidance.
- Assortment: The platform now aggregates 35-plus categories and over 40,000 SKUs from 300-plus top brands.
Core Businesses and Financial Services
Building Materials (UltraTech)
The Building Material segment revenue grew 30% YoY. UltraTech is expanding capacity to 194.06 mtpa currently, with a clear sight on reaching 240.8 mtpa by March 2028 (a CAGR of over 10%). EBITDA for the segment grew 29% YoY to Rs. 1,051 per ton.
Cellulose Fiber & Chemicals
These core businesses delivered consistent EBITDA despite commodity cycles. Cellulose Fiber EBITDA was Rs. 491 crores (48% YoY growth), driven by exports and improving input realization. Chemical revenue grew 5% YoY, with caustic soda volume hitting an all-time high of 313,000 tons in Q3 FY’26. However, Chemicals EBITDA was lower by 4% YoY due to lower ECU realization.
Financial Services (Aditya Birla Capital)
The Financial Services portfolio showed strong traction, with revenue up 29% YoY. The total lending portfolio grew 30% YoY to over Rs. 1,90,000 crores. A key highlight was the approval of a primary capital infusion of Rs. 2,750 crores into Aditya Birla Housing Finance, valuing the business at approximately Rs. 19,250 crores post-money, involving a partnership with Advent International.
Renewable Energy
Aditya Birla Renewables grew revenue by 82% YoY, reaching nearly 2 GW peak capacity. The business secured a strategic investment from Global Infrastructure Partners (GIP), involving an investment of up to Rs. 3,000 crores, valuing the renewable business at an Enterprise Value (EV) of Rs. 14,600 crores.
Capital Expenditure and Debt
Capex spent on YTD basis for the decorative paint business is Rs. 1,310 crores, with the focus now shifting to the Phase-1 Harihar Lyocell project. Net debt stood lower at Rs. 6,882 crores as of December 31, 2025, against Rs. 8,277 crores last year, maintaining a healthy Net Debt-to-TTM EBITDA of 2.1 level.
Source: BSE
