Grasim Industries, the flagship company of the Aditya Birla group, on Wednesday saw consolidated June-quarter profit rise 51.1% year-on-year to Rs 2,146 crore, compared with Rs 1,421 crore a year ago.

Revenue grew 21.4% year-on-year to Rs 48,716 crore in Q1FY27, while earnings before interest tax depreciation and amortisation (Ebitda) rose 27.7% versus last year to Rs 7,772 crore, helped by stronger operating performance across businesses. Ebitda margin improved to 16% from 15.2% a year ago.

The building materials portfolio remained a key contributor to the quarter. Revenue from the segment, which includes cement, paints and B2B e-commerce, rose 21% year-on-year to Rs 28,835 crore, while Ebitda increased 17% year-on-year to Rs 5,002 crore.

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Birla Opus continued to gain traction, with revenue rising 64% year-on-year to Rs 1,661 crore. Its market share expanded by around 30 basis points sequentially. Birla Pivot also continued to scale, with revenue jumping 75% versus last year to Rs 2,548 crore on strong customer traction.

Within cement, total grey cement capacity stood at 205.5 million tonnes per annum (MTPA) after an 8.7 MTPA expansion, with the company targeting capacity of more than 240 MTPA by March 2028. Total cement sales volumes rose 12.2% year-on-year to 41.3 million tonnes, while ready-mix concrete volumes increased 18% year-on-year to 4.6 million cubic metres.

Operating Ebitda per tonne stood at Rs 1,214, supported by operating leverage and better cost management. The business also continued to increase its green power mix, which stood at 45.6% in Q1 FY27 against a target of 85% by FY30.

Chemicals, fibres benefit from pricing and global markets

Grasim’s chemicals business also delivered a better quarter, with revenue rising 10% year-on-year to Rs 2,640 crore and Ebitda increasing 16% year-on-year to Rs 491 crore. The improvement was broad-based across the chemical businesses, with specialty chemicals and chlorine derivatives supporting performance.

Specialty chemicals accounted for 30% of chemicals revenue, up 200 basis points year-on-year, helped by the pass-through of higher key input costs. Caustic sales volumes, however, declined 6% to 284 KT due to lower production during a captive power plant maintenance shutdown.

The cellulosic fibres business saw revenue rise 12% year-on-year to Rs 4,530 crore, helped by higher global prices, rupee depreciation and a favourable product mix. Ebitda nearly doubled to Rs 632 crore, against a low base a year earlier.

Global conditions also improved for the segment in Q1. China’s CSF (cellulosic staple fibre) operating rates rose to 93% in Q1 from 82% a year earlier, while inventories fell to seven days. Average CSF prices increased 19% year-on-year to $1.81 per kg, marking the third consecutive quarter of improvement.