Grasim Industries Limited

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.

Key Business segments

• Building Materials (53% in 9M FY25 vs 54% in FY23):
• Cement
• Decorative Paints
• B2B E-Commerce
• Financial Services (28% in 9M FY25 vs 23% in FY23)
• Cellulosic Fibres (12% in 9M FY25 vs 13% in FY23)

Shareholding Pattern

-PUBLIC GROUP

-PROMOTER GROUP

Financial Summary

Synopsis of Financials

• B2B E-Commerce (Birla Pivot)
• Growth Trajectory
• Annualized run rate (ARR) of ₹5,000 crore as of Q4FY25 exit; 3.3x YoY revenue growth.
• Platform hosts 40,000+ SKUs, 300+ brands/OEMs, 35 product categories (private labels in bathware, tiles, plywood).
• Core Businesses Performance & Capex
• Cellulosic Fibres (VSF)
• FY25 revenue: ₹15,987 crore (+6% YoY), volume +4% YoY.
• Profitability down 12% YoY due to higher raw material costs.

Final Outlook

While Grasim Industries has shown consistent long-term wealth creation, with strong 3-year (71.48%) and 5-year (443.32%) returns outperforming the NIFTY 50, its recent standalone performance has dipped sharply with a 56% fall in profit. However, the consolidated business remains strong, driven by subsidiaries in financial services and other sectors, posting 30% profit growth in FY24. Given the strong group fundamentals and long-term potential, existing investors may consider holding the stock, while new investors should wait for a better entry point amid near-term volatility.

In the 2022-23 financial year, Grasim Industries reported a net profit of ₹2,133.73 crore (standalone), while in 2023-24, the standalone net profit dropped to ₹945.39 crore, reflecting a decline of approximately 56% in profits. This indicates a significant dip in standalone performance, driven by lower revenue (-3.70%), higher cost of traded goods (205.79%), and increased finance costs (+19.75%).

However, on a consolidated level, the company reported a profit growth of around 30% in FY 2023-24, rising from ₹11,078 crore in FY23 to ₹14,180 crore in FY24, mainly due to the strong performance of subsidiaries and associate companies, including financial services and insurance businesses. The consolidated revenue also increased by 11.35%, reinforcing the group’s strong growth trajectory.

Over the long term, Grasim has outperformed the NIFTY 50, delivering 71.48% returns over 3 years and an impressive 443.32% over 5 years, compared to NIFTY’s 47.96% and 156.84% respectively, showcasing strong shareholder value creation despite short-term standalone headwinds.