Grasim Industries
Grasim Industries
Construction F&OKey Fundamentals
LargecapCementConstructionTapetide Score
Data-driven rating, 0–100. How it works →
Key Insights
Weaknesses
2- Company has a low return on equity of 5.21% over last 3 years.
- Dividend payout has been low at 14.6% of profits over last 3 years
Growth Rate
AI Analysis — Bull vs Bear
Grasim Industries is a diversified Aditya Birla Group holding and operating company with a market capitalisation of about Rs 2,15,794 crore, trading at a P/E of 19.2x and a P/B of 2.07x. Sales have compounded at 18% over 10 years and 20% on a TTM basis, and TTM profit is up 40%. Profitability is still weak, with 3-year profit CAGR at -10%, ROE at 5% last year (5.21% averaged over 3 years), and a dividend yield of 0.32%.
- Revenue growth has been consistent and fast: sales compounded at 18% over 10 years, 18% over 5 years and 14% over 3 years, which shows the business keeps expanding its scale.
- Top-line momentum is picking up: TTM sales growth of 20% is above the 3-year CAGR of 14%, which suggests recent capacity additions and new businesses are starting to contribute revenue.
- Profits appear to be recovering: TTM profit growth of 40% is a sharp reversal from the -10% 3-year profit CAGR, which may mean the earnings trough is past.
- Shareholders have been rewarded over long periods: the stock has delivered a 15% CAGR over 10 years, 14% over 5 years, 18% over 3 years and 16% over the last year.
- At a P/B of 2.07x, the market values the company at roughly twice its book value. For a conglomerate that holds large listed subsidiaries, that multiple can hide value in those holdings, and holding-company structures often trade at a discount to that value.
- The P/E of 19.2x implies an earnings yield of about 5.2%. That is modest compared with the 20% TTM sales growth and 40% TTM profit growth, if the recovery holds.
- With a market cap of about Rs 2,15,794 crore, Grasim is a large-cap stock with deep liquidity and the backing of a major business group, which lowers governance and funding risk compared with smaller peers.
- Returns on capital are low: ROE was 5% last year, averaged 5.21% over 3 years and was only 7% over both 5 and 10 years. That is probably below the company's cost of equity, which would mean growth is not creating much value for shareholders.
- Earnings have shrunk over the medium term: profit fell at a -10% CAGR over 3 years and grew only 2% a year over 5 years, even though sales grew 14% and 18% a year over the same periods.
- Sales and profit have diverged over the long run: over 10 years, sales compounded at 18% but profit at only 8%. That points to sustained margin compression or growth that has been heavy on capital and light on returns.
- The dividend yield of 0.32% and a 3-year dividend payout of only 14.6% of profits give income-focused investors little, since most cash is being put back into the business.
- The stock's 10-year return of 15% CAGR is well ahead of 8% profit CAGR over the same period. This suggests much of the return came from a higher valuation multiple rather than earnings growth, which limits room for further gains from re-rating.
- The 40% TTM profit growth starts from a low base after 3 years of -10% CAGR, so it may reflect mean reversion or one-off items rather than a lasting improvement. With ROE still at 5%, the recovery is not yet showing up in returns.
- A P/B of 2.07x against an ROE of about 5% implies a price-to-book multiple that is steep for the returns the company actually earns on its equity.
- The data gives no debt-to-equity or ROCE figure, so leverage and capital efficiency cannot be checked here. That matters given heavy recent capital spending across the group's businesses.
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Canadian JV idles Nackawic pulp mill Sep 18
AVNB, Grasim's 45%-owned Canadian JV (₹187.41 crore investment), will temporarily idle its ~190K TPA Nackawic pulp mill around end-October 2026 because of market conditions. That takes out about 57% of AVNB's ~332K TPA total capacity and points to weak global pulp demand and pricing.
- Customs search at Nagda fibre unit Sep 12
Customs officials searched Grasim's fibre unit in Nagda, and the company says it cooperated fully. Grasim reports no major impact on operations or its financial position, but the search adds regulatory overhang until it is resolved.
- FY26 PAT up 33%, revenue 18% Sep 3
FY26 consolidated revenue rose 18% to ₹1,75,431 crore, and adjusted PAT rose 33% to ₹5,208 crore. Cement volumes grew 9% and cellulosic fibre sales grew 3%.
- Promoters raise stake to 45.07% Sep 28
Birla Group Holdings and other promoter entities bought 1.36 crore Grasim shares on the open market, lifting their holding to 45.07% of diluted capital. Promoters buying in the open market shows confidence in the company's valuation and outlook.
- ₹2,850 crore CPs repaid on time Sep 24
Grasim fully repaid four commercial paper issues on maturity: ₹800 crore (Sep 11), ₹500 crore (Sep 17), ₹800 crore (Sep 18) and ₹750 crore (Sep 24), covering 57,000 units in total. Nothing is outstanding on these issues, which points to sound liquidity management.
- Jefferies India Forum investor meetings Sep 9
Grasim will hold group and one-to-one meetings with institutional investors at the Jefferies India Forum 2026 in Gurugram on September 16, 2026. This is routine investor outreach.
TL;DR: Grasim's core businesses are doing well: FY26 revenue rose 18% and adjusted PAT 33%, led by 9% cement volume growth. Promoters lifting their stake to 45.07% and ₹2,850 crore of CPs repaid on time point to strong governance and liquidity. The risks are in the fibre and pulp chain, where the Nackawic mill idling signals weak pulp markets, and the Nagda customs search, though the company reports no material impact. The overall trend is improving, and the next things to watch are cement demand momentum and whether the cellulosic fibre and pulp cycle recovers after AVNB's October shutdown.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 31,065 | 30,221 | 31,965 | 37,727 | 34,610 | 34,223 | 35,378 | 44,267 | 40,118 | 39,900 | 44,312 | 51,101 | 48,716 |
| Expenses | 24,708 | 24,173 | 25,073 | 29,835 | 27,927 | 28,197 | 28,575 | 35,517 | 31,296 | 32,228 | 35,442 | 40,227 | 37,565 |
| Operating Profit | 6,357 | 6,048 | 6,893 | 7,892 | 6,682 | 6,026 | 6,804 | 8,750 | 8,822 | 7,671 | 8,870 | 10,874 | 11,152 |
| OPM % | 20% | 20% | 22% | 21% | 19% | 18% | 19% | 20% | 22% | 19% | 20% | 21% | 23% |
| Other Income | 296 | 285 | 256 | -48 | 247 | 403 | 382 | 485 | 376 | 406 | 65 | 143 | 318 |
| Interest | 2,032 | 2,226 | 2,433 | 2,586 | 2,795 | 3,027 | 3,270 | 3,407 | 3,551 | 3,669 | 3,909 | 4,015 | 4,298 |
| Depreciation | 1,183 | 1,245 | 1,244 | 1,329 | 1,443 | 1,572 | 1,608 | 1,831 | 1,810 | 1,899 | 1,975 | 2,042 | 1,988 |
| PBT | 3,438 | 2,862 | 3,472 | 3,928 | 2,691 | 1,830 | 2,308 | 3,996 | 3,837 | 2,510 | 3,051 | 4,960 | 5,183 |
| Tax % | 25% | 29% | 25% | 31% | 23% | 46% | 25% | 26% | 28% | 40% | 27% | 26% | 26% |
| Net Profit | 2,576 | 2,024 | 2,603 | 2,722 | 2,066 | 983 | 1,734 | 2,973 | 2,771 | 1,498 | 2,233 | 3,684 | 3,846 |
| EPS in Rs | 23.17 | 17.1 | 22.25 | 20.8 | 16.33 | 4.78 | 12.45 | 21.98 | 20.87 | 8.13 | 15.23 | 27.86 | 31.53 |
Profit & Loss
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 31,734 | 34,487 | 36,068 | 55,894 | 77,200 | 68,252 | 76,404 | 95,701 | 1,17,627 | 1,30,978 | 1,48,478 | 1,75,431 | 1,84,029 |
| Expenses | 26,590 | 28,576 | 28,682 | 44,281 | 60,560 | 57,880 | 57,769 | 75,270 | 96,038 | 1,03,783 | 1,20,216 | 1,39,135 | 1,45,462 |
| Operating Profit | 5,144 | 5,911 | 7,387 | 11,612 | 16,640 | 10,373 | 18,635 | 20,431 | 21,589 | 27,195 | 28,262 | 36,296 | 38,567 |
| OPM % | 16% | 17% | 20% | 21% | 22% | 15% | 24% | 21% | 18% | 21% | 19% | 21% | 21% |
| Other Income | 530 | 1,320 | 1,076 | 410 | -1,846 | 7,076 | 1,130 | 1,648 | 3,733 | 783 | 1,517 | 1,047 | 932 |
| Interest | 667 | 718 | 702 | 3,663 | 6,060 | 6,890 | 5,723 | 4,776 | 6,044 | 9,277 | 12,500 | 15,144 | 15,891 |
| Depreciation | 1,563 | 1,834 | 1,808 | 2,724 | 3,571 | 4,004 | 4,033 | 4,161 | 4,552 | 5,001 | 6,454 | 7,726 | 7,904 |
| PBT | 3,443 | 4,679 | 5,952 | 5,635 | 5,163 | 6,554 | 10,009 | 13,143 | 14,727 | 13,700 | 10,825 | 14,473 | 15,704 |
| Tax % | 30% | 26% | 29% | 35% | 47% | -1% | 30% | 15% | 25% | 28% | 28% | 29% | — |
| Net Profit | 2,582 | 3,455 | 4,246 | 3,688 | 2,745 | 6,639 | 6,987 | 11,206 | 11,078 | 9,926 | 7,756 | 10,300 | 11,261 |
| EPS in Rs | 36.75 | 51.15 | 65.64 | 39.43 | 24.91 | 64.9 | 63.3 | 111 | 100 | 85.42 | 54.46 | 72.98 | 82.75 |
| Div. Payout % | 9% | 9% | 8% | 15% | 27% | 6% | 14% | 9% | 10% | 12% | 18% | 14% | — |
Balance Sheet
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 92 | 93 | 93 | 131 | 132 | 132 | 132 | 132 | 132 | 133 | 136 | 136 |
| Reserves | 23,048 | 27,336 | 31,294 | 57,230 | 57,888 | 56,501 | 65,362 | 75,567 | 78,610 | 88,520 | 97,373 | 1,03,334 |
| Borrowings | 11,930 | 12,505 | 9,213 | 67,070 | 84,487 | 84,777 | 79,078 | 74,744 | 1,03,039 | 1,37,155 | 1,86,326 | 2,27,853 |
| Other Liabilities | 18,963 | 19,642 | 22,147 | 83,467 | 98,620 | 1,02,772 | 1,22,777 | 1,38,706 | 1,55,042 | 1,86,309 | 2,16,206 | 2,37,811 |
| Total Liabilities | 54,033 | 59,576 | 62,747 | 2,07,899 | 2,41,127 | 2,44,181 | 2,67,349 | 2,89,149 | 3,36,823 | 4,12,116 | 5,00,040 | 5,69,134 |
| Fixed Assets | 31,828 | 34,271 | 34,786 | 69,257 | 87,129 | 87,736 | 85,023 | 88,996 | 94,896 | 1,00,494 | 1,41,148 | 1,49,452 |
| CWIP | 2,755 | 1,788 | 1,297 | 2,290 | 2,766 | 3,904 | 5,769 | 6,615 | 7,778 | 18,358 | 14,765 | 16,465 |
| Investments | 7,255 | 10,601 | 14,200 | 65,995 | 62,747 | 66,337 | 88,017 | 96,766 | 1,05,355 | 1,29,306 | 1,40,496 | 1,54,982 |
| Other Assets | 12,194 | 12,916 | 12,464 | 70,356 | 88,484 | 86,204 | 88,540 | 96,771 | 1,28,793 | 1,63,959 | 2,03,632 | 2,48,236 |
| Total Assets | 54,033 | 59,576 | 62,747 | 2,07,899 | 2,41,127 | 2,44,181 | 2,67,349 | 2,89,149 | 3,36,823 | 4,12,116 | 5,00,040 | 5,69,134 |
Cash Flow
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 4,594 | 5,868 | 7,288 | -4,140 | -1,659 | 16,620 | 15,075 | 7,038 | -12,685 | -10,719 | -17,170 | -17,810 |
| Investing | -2,359 | -4,515 | -3,509 | 1,546 | -2,212 | -11,364 | -7,146 | -1,053 | -13,712 | -23,114 | -23,313 | -17,798 |
| Financing | -2,278 | -1,365 | -3,799 | 3,449 | 4,158 | -3,418 | -8,003 | -6,733 | 26,469 | 33,908 | 42,978 | 33,523 |
| Net Cash Flow | -42 | -11 | -20 | 856 | 287 | 1,838 | -75 | -748 | 72 | 75 | 2,495 | -2,085 |
| Free Cash Flow | 1,315 | 3,120 | 5,495 | -7,186 | -5,667 | 11,638 | 11,525 | -1,467 | -24,610 | -30,042 | -33,688 | -33,130 |
| CFO/OP | 95 | 119 | 112 | -21 | 1 | 177 | 91 | 49 | -49 | -30 | -52 | -42 |
Ratios
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 30 | 32 | 30 | 34 | 32 | 31 | 21 | 21 | 18 | 19 | 23 | 23 |
| Inventory Days | 207 | 168 | 163 | 170 | 154 | 179 | 179 | 200 | 180 | 194 | 179 | 130 |
| Days Payable | 102 | 97 | 117 | 146 | 133 | 172 | 229 | 239 | 216 | 221 | 177 | 152 |
| Cash Conversion Cycle | 136 | 103 | 76 | 58 | 53 | 38 | -29 | -18 | -17 | -7 | 25 | 1 |
| Working Capital Days | -44 | -56 | -19 | -95 | -47 | -84 | -103 | -88 | -75 | -91 | -105 | -81 |
| ROCE % | 9% | 11% | 13% | 10% | 8% | 8% | 9% | 9% | 10% | 9% | 8% | 8% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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Company Information
Grasim Industries Limited is the flagship company of the Aditya Birla group, it ranks amongst India's largest private sector companies. On standalone basis, GIL’s core businesses comprise of viscose Staple fibre (VSF), caustic soda, speciality chemicals, rayon-grade wood pulp (RGWP) with plants at multiple locations. It also has certain other businesses such as fertiliser, textile, etc. [1]
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