Grasim Industries, the flagship business of the Aditya Birla Group, saw its shares rally over three percent on the Monday, August 11 session, after reporting its earnings show for the quarter ended June 30, 2025.
The Aditya Birla Group firm posted a 32 percent sequential jump in net profit for Q1FY26, coming in at Rs 1,419 crore versus Rs 1,075 crore in the preceding quarter. Revenue from operations for the quarter ended June 2025 stood at Rs 40,118 crore, up 16 percent year-on-year from Rs 34,610 crore in the same period last year.
The firm's management highlighted that the paints business posted double-digit QoQ growth even as the broader organized decorative paint industry remained sluggish. Notably, 65 percent of Birla Opus revenue is now derived from premium and luxury paint products. The brand has expanded distribution to over 8,000 towns in under a year.
At 12.45 p.m., shares of Grasim were quoting Rs 2,744.1, higher by 2 percent on the NSE.
Motilal Oswal said Grasim’s Q1FY26 results exceeded expectations, driven by stronger-than-estimated profitability in the VSF and chemical segments, along with higher revenue from its high-growth paint and B2B businesses.
While core segments recorded improved profitability and stable demand, Motilal Oswal flagged that shifting global trade dynamics could pose near-term challenges. Paints and B2B e-commerce continue to grow steadily with expanding distribution and product portfolios, and the brokerage maintained its ‘buy’ rating with a target price of Rs 3,500.
ICICI Securities said Grasim’s Q1FY26 performance indicates a potential upside risk to its FY26 standalone EBITDA forecast and revenue estimates for the new segments. However, taking a conservative approach, the brokerage has kept its earnings estimates unchanged and maintained a ‘buy’ rating.
Factoring in a higher fair value for key holding UltraTech Cement, which accounts for 61 percent of its SOTP valuation, ICICI Securities has revised its target price to Rs 3,480 from Rs 3,363 earlier.
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