Grasim Industries, part of the Aditya Birla Group, has reported its highest-ever standalone revenue for the second quarter of the current fiscal year. The company's Q2FY27 standalone revenue reached an impressive Rs 12,747 crore, marking a substantial 33% increase compared to the same period last year.
This strong top-line performance was complemented by a significant boost in profitability. Grasim's reported standalone net profit (PAT) for the quarter soared by 187% year-over-year, reaching Rs 2,306 crore. This figure accounts for an exceptional charge of Rs 825 crore related to impairment and estimated exposure in its pulp joint venture, AV Group NB Inc., Canada.
Underlying Performance Drives Growth
The company emphasized that its standalone results accurately reflect the underlying operational performance, distinguishing them from consolidated figures where certain inter-company transactions, like the dividend from UltraTech, are eliminated. Grasim received a dividend of Rs 3,968 crore from UltraTech, which contributed to its standalone cash flow.
Despite a volatile global economic environment, Grasim's core businesses, including Cellulosic Fibres, Chemicals, and Textiles, demonstrated remarkable resilience and continued growth momentum. The company's strategic growth engines, particularly its Paints and B2B E-commerce ventures, also maintained strong traction with consumers and brands, contributing to the overall positive results.
EBITDA and Cash Profit Soar
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for Q2FY27 climbed to Rs 4,615 crore, a 158% increase year-over-year. This surge was primarily driven by the UltraTech dividend income and a favorable product mix, though partially offset by higher input prices. Cash profit for the quarter also saw a significant rise, increasing 151% to Rs 3,968 crore.
Despite the robust financial performance, Grasim Industries' stock experienced a downturn, falling over 3% to Rs 3010 on the BSE, opening lower than its previous close.