Grasim Q1 FY27: PAT +39% YoY to ₹3,846 Cr as margins widen; standalone swings to profit

Grasim's consolidated PAT for Q1 FY27 rose 39% YoY to ₹3,846 Cr (₹2,146 Cr attributable to owners, up 51% YoY; EPS ₹31.64 vs ₹20.91 a year ago), on revenue up 21.4% YoY to ₹48,716 Cr, though revenue eased 4.7% QoQ from the seasonally heavier ₹51,101 Cr Q4 print. At the standalone level (the parent's own VSF and chemicals operations), the company swung to a ₹246.65 Cr profit from a ₹118.18 Cr loss a year ago — comfortably ahead of a Zee Business brokerage estimate of just ₹7 Cr standalone PAT, even as standalone revenue of ₹11,795 Cr came in marginally below the ₹12,030 Cr street estimate.

The growth was broad-based rather than driven by one line. Consolidated operating margin expanded to 16.14% from 15.41% a year ago and 15.37% last quarter, while net profit margin rose to 7.90% from 6.91% YoY. Cellulosic Fibres delivered the sharpest turnaround — segment revenue up 12% YoY to ₹4,530 Cr but segment result nearly doubling (+96%) to ₹632 Cr, consistent with the standalone margin recovery (standalone OPM 8.31% vs 4.41% a year ago). Building Materials (cement, paints and B2B e-commerce combined) grew segment revenue 21.5% YoY to ₹28,835 Cr and segment result 16.6% to ₹5,002 Cr. Financial Services was the fastest-growing segment, with segment result up 37.1% YoY to ₹1,603 Cr on revenue up 28.1% to ₹12,155 Cr, aided by Aditya Birla Capital's ₹4,000 Cr preferential equity raise during the quarter (Grasim invested ₹2,880 Cr, holding steady at 52.30% fully diluted). Exceptional items were a net ₹13.25 Cr loss this quarter versus ₹38.38 Cr a year ago — under 1% of PBT in both periods — so the ~39% reported PAT growth is effectively also the adjusted, underlying growth (~37.6% on a clean pre-tax-addback basis).

The stock went into the print at ₹3,365, up 8.3% over the past month of trading.

For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 3 consecutive quarters.

Management's prior (Q4 FY26) guidance flagged high-double-digit growth targets for Birla Opus paints and an EBITDA-breakeven timeline for Birla Pivot B2B e-commerce by end-FY27, alongside confidence in UltraTech Cement and financial services. This filing bundles Paints and B2B e-commerce with Cement inside a single Building Materials segment, so those specific sub-targets cannot be verified from the disclosed numbers — though the segment's 21.5% YoY growth and steady margin are directionally consistent with that confident tone. No standalone management press release was available for this filing to cross-check further. During the quarter the company's CPVC resin plant in Gujarat began commercial production (announced 11 August, just ahead of results), and post quarter-end, subsidiary Aditya Birla Renewables signed an SPA to acquire 100% of Solenergi Power from Shell Overseas Investments at an enterprise value of ~₹17,200 Cr, funded via a mix of debt and equity. The company also repaid ₹750 Cr of commercial paper twice during the quarter and issued a letter of awareness on the Domsjö Fabriker credit facility.