Grasim Industries share price has fallen over 3% intra-day after the company reported its Q2FY26 results and the CEO of the Paints segments stepped down. Key brokerage firm Nuvama Institutional Equities raised the target price on the stock while maintaining the ‘Hold’ rating on the stock.
Nuvama raised the target price on Grasim Industries to Rs 3,198 from Rs 2,971, implying an upside of 11% from the current market price.
Nuvama on Grasim Industries: Long-term potential in paint segmentThough Nuvama trimmed FY26 EBITDA by 3%, they feel Grasim “is a value play given the global VSF cycle is at a near-bottom and potential long-term value for the paint segment.” As per the management, Birla Opus outpaced the decorative paints industry (including putty) in Q2FY26.
Grasim Industries reported standalone EBITDA of Rs 370 crore in the second quarter of FY26, up 13% YoY, but down 5% QoQ. While the company’s chemical segment performance improved, a weak performance in the CSF division and losses in new segments (B2B, paints) affected profitability.
Grasim capex update
The company has incurred a capex of Rs 9,727 crore on the paint business (97% of the proposed outlay). The capex for FY26 is estimated at Rs 2,300 crore. Nuvama expects “net debt/EBITDA would stay in a comfort zone of less than 3.5x once revenue stabilises :
Grasim Industries Q2FY26 results
The company posted a 76% year-on-year growth in consolidated net profit to Rs 553 crore for Q2FY26, supported by higher profitability in the cement and chemical businesses.
The company’s revenue stood at Rs 39,900 crore, an increase of 16.6% YoY in Q2FY26, compared to Rs 34,223 crore in the same period a year ago. At the operating front, Grasim Industries’ consolidated EBITDA came in at Rs 4,872 crore, up 33.3% YoY.
Grasim Industries stock performance
The share price of Grasim Industries has fallen by almost 2% ,i9in the last five trading sessions. The stock has given a return of 2.5% in the past one month and 5.5% in the last six months. Grasim Industries’ share price has raised investors’ wealth by 8.8% over the previous one year.