Grasim Industries Ltd revealed its financial results for the July-September quarter of FY25, reporting a 66% decline in consolidated net profit to ₹390 crore, down from ₹1,164 crore in the same period last year. The decline in profit was attributed to weak demand in the paints division due to excessive monsoon rains, reduced profitability in its cement business, and higher interest and depreciation costs linked to investments in the renewables sector.
Despite these challenges, the company posted a revenue increase of 11% year-on-year, reaching ₹33,563 crore, driven by strong performances in its Financial Services, Cellulosic Staple Fibre (CSF), and Specialty Chemicals segments.
Grasim’s operating profit was impacted by lower margins in the cement sector and early-stage investments in its new paints business, Birla Opus. The company’s expenses rose by 15.75% to ₹31,993 crore, while total income, including other sources, grew by 11.31% to ₹33,958 crore.
The CSF business saw a 6.07% increase in revenue to ₹4,125 crore, buoyed by higher sales volumes and improved global prices. The chemicals segment also grew by 3.31% to ₹2,054 crore, driven by rising caustic soda prices, while the building materials segment, which includes cement, paints, and B2B e-commerce, grew by 3.25% to ₹16,683 crore. However, its EBITDA from this segment dropped by 28% due to lower cement prices and initial investments in the paints business.
Grasim’s cement arm, UltraTech, reported a 4% increase in sales volumes, reaching 27.84 million tonnes, but faced pressure from lower realizations. The paints business is gradually ramping up production with three plants already operational, and production trials have begun at additional sites. The company is on track to achieve its goal of USD 1 billion in revenue for Birla Pivot, its B2B e-commerce venture, by FY27.
In the financial services segment, Aditya Birla Capital Ltd saw a 33% revenue growth, reaching ₹10,252 crore, with an increase in its lending portfolio and assets under management. Other business revenues, including textiles, renewables, and insulators, grew by 2.13% to ₹777 crore.
For FY25, Grasim’s capital expenditure stood at ₹1,884 crore in the first half, with plans to invest ₹4,691 crore in new growth businesses. The company has approved investments of ₹287 crore for additional pulp capacity and ₹20 crore for its textiles division.
Looking forward, Grasim remains well-positioned to capitalize on the growth opportunities in India’s rapidly expanding economy, particularly with the government’s focus on infrastructure and housing development.
Grasim Industries Limited, the flagship company of the Aditya Birla Group, is among India’s top publicly listed enterprises. Established in 1947 as a textiles manufacturer, Grasim has grown into a diversified leader across multiple sectors. It is a global pioneer in Cellulosic Fibres and a prominent producer of Diversified Chemicals, Fashion Yarn, and Fabrics in India. Marking its next phase of growth, Grasim has ventured into the paints industry under the brand ‘Birla Opus,’ with three out of six planned decorative paint plants commencing operations in April 2024.
Additionally, leveraging Group synergies, the company launched ‘Birla Pivot,’ a B2B online marketplace for building materials. Through its subsidiaries—UltraTech Cement, Aditya Birla Capital, and Aditya Birla Renewables—Grasim holds leading positions in cement production, diversified financial services, and clean energy solutions in India. With a focus on sustainability and value creation, Grasim supports over 45,000 employees, 2,52,000 shareholders, and its extensive customer base.
