Shares of Grasim Industries experienced a significant increase, rising over 6% on Thursday, following the company’s robust earnings report for the March quarter. The growth was attributed to enhanced realisations, improved margins in the viscose staple fibre (VSF) sector, and reduced losses in emerging ventures. Positive evaluations from global brokerages, emphasizing successful execution in paints, chemicals, and B2B e-commerce, further boosted investor confidence.
The stock reached a 52-week high of ₹3,180, ultimately closing at ₹3,154.50, a 6% increase from the previous close of ₹2,971.10.
For the March quarter, Grasim Industries reported a consolidated net profit of ₹3,802 crore, marking a 28% year-on-year increase from ₹2,973 crore in the same period last year. This earnings growth was driven by strong performance in the VSF business, healthy chemical volumes, and ongoing expansion in its paints and B2B e-commerce sectors.
During the post-earnings conference call, management indicated that Birla Opus aims to achieve ₹10,000 crore in profitable revenue by its third year of full operations, with FY26 projected as the first complete year. The paints division is targeting to become the second-largest player in the decorative paints market, with expectations of high double-digit growth by FY27.
Management also mentioned that Birla Pivot is working towards breakeven in EBITDA by the end of FY27 while expanding its market presence and revenue streams. Furthermore, UltraTech Cement is on track to exceed a capacity of 240 million tonnes per annum by March 2028.
Grasim’s capital allocation strategy is focused on reinvesting revenues and EBITDA from its standalone operations into growth ventures, while also maintaining a stake of over 50% in UltraTech Cement, with Aditya Birla Capital as a long-term objective.
Global brokerage Jefferies reaffirmed its buy rating on Grasim and increased its target price from ₹3,440 to ₹3,600. It commented that Grasim closed FY26 strongly, supported by the improved performance of standalone operations, with Q4 earnings exceeding estimates due to a robust VSF performance and reduced losses in newer businesses.
Jefferies also noted significant revenue growth in the paints sector, with an expanding market share, and expects this momentum to continue into FY27. The brokerage anticipates that the B2B e-commerce division will achieve profitability by the end of FY27, attributing the strong VSF performance to a favorable product mix, operational efficiencies, and lower pulp costs.
Citi also maintained a buy rating while raising its target price from ₹3,450 to ₹3,600, describing the March quarter performance as resilient and highlighting sequential improvements in VSF EBITDA.
Citi observed that Grasim’s paints division has surpassed the 10% market share milestone and anticipates that the stock will increasingly align with the performance of its cement and paints businesses, receiving ongoing support from the VSF and chemical segments. It also expects the holding company discount to narrow as paints profitability improves and dividends from UltraTech Cement rise.
Morgan Stanley rated Grasim as overweight and adjusted its target price to ₹3,900 from ₹3,865, designating the company as its top pick among analysts. The brokerage noted that standalone EBITDA surpassed estimates, driven by the cellulose and chemicals segments.
Morgan Stanley highlighted that revenues from the paints business increased approximately 19% quarter-on-quarter, estimating market share gains of at least 150 basis points sequentially. It expects Grasim’s exit market share in paints to exceed 11%, noting that the industry’s growth forecast for FY27 remains in double digits.
In addition, Morgan Stanley stated that Birla Pivot’s revenue likely grew by around 30% quarter-on-quarter and identified multiple potential re-rating triggers for the stock, including the value unlocking in the paints sector and the scaling of new-age ventures. It noted that the standalone net debt remained stable at ₹69 billion.
Domestic brokerage Motilal Oswal reiterated its buy rating with a target price of ₹3,440, citing Grasim’s strong execution in the paints and B2B e-commerce sectors, margin improvements in VSF, and healthy volume growth in chemicals.
Motilal Oswal added that investments in branding, an expanded contractor ecosystem, and a premium product mix are strengthening Grasim’s position in the paints market. While acknowledging short-term cost pressures, it expects improvements in margins through operating leverage, procurement efficiencies, and scale benefits, anticipating that rising VSF prices will support healthy margins in the upcoming quarters.
Published on May 21, 2026.
