Birla Opus CEO exit impact: Grasim shares down 6%, Britannia up 2%; know why

Birla Opus CEO exit impact: Grasim shares down 6%, Britannia up 2%; know why

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26 Aug, 2025 12:21

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Grasim Industries shares fell 6% on November 6 after Rakshit Hargave, who led the company's paint unit Birla Opus, resigned 18 months after its launch. Meanwhile, Britannia Industries shares rose 2.5% as the FMCG company tapped Hargave as CEO.

Given the ex-CEO's active engagement on scaling the paints business amid tough competition, investor sentiment may be cautious in near-term, said global brokerage Jefferies.

The resignation is a "negative surprise" for Grasim, added Jefferies.

At 11:55 am on November 6, Grasim Industries shares were trading 6% lower at Rs 2,705.6 apiece despite 50% rise in net profit in September quarter results. Britannia Industries shares were trading 2% higher at Rs 6,002.5 apiece a day after it was announced that Rakshit Hargave is its new CEO. Meanwhile, Birla Opus' biggest rival Asian Paints shares nearly 6% on November 6.

So far in 2025, Grasim shares rose 14% while those of Britannia rose 28%.

Britannia's Q2 net profit rose 23% YoY and net profit margins improved to 13.5% from 11.4% a year ago, benefitting from price hikes.

Britannia's former CEO Rajneet Kohli stepped down in March

New CEO Hargrave played a critical role in scaling the Birla paints business amid tough competition, Jefferies said.

Aditya Birla Group flagship holding firm Grasim Industries Ltd on Wednesday reported a 52.4% rise in its net profit to Rs 1,498.04 crore for the September quarter of FY26, supported by a higher profitability in the cement and chemical businesses.

The company has reported a net profit of Rs 982.94 crore for the July-September quarter a year ago, according to a regulatory filing by the holding firm.

Grasim's revenue from operations increased 16.6% to Rs 39,899.5 crore in the September quarter of FY26. It was Rs 34,222.50 crore in the corresponding quarter a year before.

This growth in consolidated revenue was "largely driven by growth in building materials and chemicals businesses", said Grasim Industries in its earnings statement.

Its Birla Opus, which is a relatively new entrant in the segment, continues to gain market share in the Indian decorative paints market, despite industry slowdown.

"Revenue market share gains are driven by rapid expansion of distribution network, higher secondary sales, enhanced brand visibility and sustained product quality differentiation," it said.

With the commencement of the Kharagpur plant in October 2025, the total capacity has reached 1,332 MLPA (Million Litres Per Annum). According to Grasim, its cumulative capex for the paints business stood at Rs 9,727 crore till September 2025.

Bakery food company Britannia Industries Ltd on Wednesday reported a 23.23% rise in consolidated net profit to Rs 655.06 crore for the September quarter, helped by stable commodity prices and cost optimisation efforts.

The company had posted a net profit of Rs 531.55 crore in the July-September quarter a year ago, according to a regulatory filing by Britannia Industries.

Britannia Industries' revenue from the sale of products increased 4% to Rs 4,752.17 crore in the September quarter.

Its revenue from operations rose 3.7% to Rs 4,840.63 crore in the September quarter. It was Rs 4,667.57 crore in the corresponding quarter.

During the quarter, Britannia recorded a "reasonable growth" in revenue with the profits growing by 23.2%. It is "driven by relatively stable commodity prices and sustained efforts to optimise costs across the value chain", said its Vice Chairman and Managing Director Varun Berry in an earnings statement.