Grasim Industries, a flagship company of the Aditya Birla group, on Wednesday reported a 75.9% year-on-year growth in consolidated net profit to `553 crore for the September quarter (Q2FY26), supported by higher profitability in the cement and chemical businesses.
Q2 revenue stood at Rs 39,900 crore, reflecting a 16.6% year-on-year increase compared to Rs 34,223 crore in the same period last year. At the operating level, consolidated Ebitda stood at Rs 4,872 crore, up 33.3% year-on-year. Grasim is the holding company for Ultratech Cement and Aditya Birla Capital. It also directly operates businesses, including textiles (cellulosic staple fibres, yarn), chemicals, and more recently, decorative paints (Birla Opus) and B2B e-commerce (Birla Pivot).
Ebitda margins improved by 150 basis points to 12.2% in Q2, versus 10.7% reported last year. One basis point is one-hundredth of a percentage point.
Despite monsoon-related demand weakness, the building materials segment reported revenue of Rs 22,253 crore, up 28% year-on-year, driven by strong performance across the cement, paints, and B2B e-commerce businesses, the company said. Ebitda rose 55% year-on-year to Rs 2,950 crore, supported by robust performance in cement (UltraTech), though it was partially offset by initial investments in ‘Birla Opus’ and ‘Birla Pivot’.
Grasim also said that the building materials business continued to expand its capacities to cater to rising demand from the infrastructure and housing sectors.
The chemicals business reported revenue of Rs 2,399 crore, up 17% year-on-year, while Ebitda grew 34% year-on-year to `365 crore, driven by higher volumes in chlorine derivatives and improved ECU (electro-chemical unit) realisations.
The cellulosic staple fibres (CSF) segment reported revenue of Rs 4,149 crore, up 1% year-on-year. Ebitda stood at Rs 350 crore, down 29% year-on-year, primarily due to higher input prices absorbed by the company.
In China, operating rates averaged 89% in Q2FY26, higher than 86% in Q2FY25. Additionally, average inventory holding increased to 15 days compared to 8 days in Q2FY25, which, according to the company, led to a moderation in average CSF prices to $1.51/kg in Q2FY26. However, domestic CSF prices remained stable, supported by rupee depreciation, it said.
CSF sales volume declined 5% year-on-year to 209 KT (kilo tonne) due to temporary logistics challenges at Vilayat, Bharuch, Gujarat, which the company stated have now been resolved.
The company also said it remains well-positioned to benefit from India’s broad-based economic momentum. With a diversified portfolio and strategic capital allocation across key sectors, Grasim expects to gain from the next phase of the country’s development.