Grasim Q2 profit surges 52% to Rs 1,498 crore on strong cement, chemicals show

New Delhi: Aditya Birla Group flagship holding firm Grasim Industries Ltd on Wednesday reported a 52.4 per cent 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 per cent 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.

Total expenses of Grasim grew 15.24 per cent to Rs 37,795.74 crore in the September quarter.

Its total income, which includes other income as well, rose 16.23 per cent in the September quarter to Rs 40,244.84 crore.

On a Standalone basis, which primarily includes the India business, Grasim's revenue from operations surged 26 per cent to Rs 9,610.34 crore.

According to Grasim, an increase in standalone revenue was "led by robust growth from new businesses: Paints and B2B E-commerce coupled with stable core businesses".

For the first half (H1), Grasim's revenue from operations jumped 16.25 per cent to Rs 80,017.66 crore. It was Rs 68,832.29 crore in the corresponding period of the last fiscal.

Grasim controls companies like UltraTech, Aditya Birla Capital and businesses such as textiles, chemicals and building materials for the Aditya Birla Group.

The company's revenue from its Cellulosic Fibre business was marginally up at Rs 4,149.39 crore in the second quarter of FY26.

"In China, operating rates averaged at 89 per cent in Q2 FY26, higher compared to 86 per cent in Q2 FY25. Also, average inventory holding increased to 15 days compared to 8 days in Q2 FY25. This has led to moderation in average CSF prices to USD 1.51/kg in Q2 FY26," it said.

The CFY (Cellulosic Fashion Yarn) business sales volume inched up by 3 per cent, driven by festive demand; however, realisation remains under pressure due to Chinese producers' aggressive pricing for the Indian markets.

Its revenue from the chemicals segment rose 16.75 per cent to Rs 2,398.62 crore in the September quarter. This was "driven by higher volumes in Chlorine Derivatives and better ECU realisations", it said.

Grasim's revenue from its building material business reported a growth of 28.31 per cent to Rs 22,253.32 crore. It was Rs 17,342.44 crore in the July-September quarter a year ago.

Grasim's 'Building Materials' comprises its cement business, UltraTech, its newly launched Paints business, Birla Opus and its B2B e-commerce business, Birla Pivot.

The segment's "EBITDA stood at Rs 2,950 crore, up 55 per cent YoY anchored by robust performance in Cement (UltraTech), which was partially moderated by initial investments for ‘Birla Opus’ and ‘Birla Pivot’, as we scale the Building Materials business," it said, adding that "Building Materials segment is expanding capacities to meet the growing demand from infrastructure and housing segments".

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.

Similarly, the revenue from the financial services segment, Aditya Birla Capital Ltd (ABCL), rose 3 per cent to Rs 10,569.31 crore. It was Rs 10,251.58 crore in the September quarter a year ago.

"The overall lending portfolio (NBFC and HFC) increased by 29 per cent YoY to Rs 1,77,855 crore. The total AUM (AMC, life insurance and health insurance) grew by 10 per cent YoY to Rs 5,50,240 crore," it said.

Grasim's revenue from other businesses, which includes textiles, renewables, and insulators, jumped 28.14 per cent to Rs 996.44 crore in the September quarter.

Over the outlook, Grasim said it stands to gain considerably from India’s broad-based economic momentum.

"The government's ambitious agenda for a Viksit Bharat, rooted in infrastructure expansion, a resurgence in domestic manufacturing, formalisation of the financial system, and rising disposable incomes, creates fertile ground for sustained demand," it said.