Market Cheers Grasim’s 32% Revenue Growth, Q4 Loss Narrows

Grasim Industries shares started today’s session in a faster lane after the company’s loss narrowed during the March quarter. The stock rose as much as 2.7% on the National Stock Exchange to its intraday high of Rs 2,746.90. However, at 10:02 AM, the stock pared some gains and was trading 1.5% higher.

During the quarter ended March, Grasim’s loss almost halved to Rs 288 crore on a standalone basis, compared to the year-ago figure. Higher revenue and lower exceptional loss in the quarter under review helped the company cut its net loss for the period. Standalone revenue of the Aditya Birla group company surged nearly 32% on year to Rs 8,925.75 crore in the fourth quarter of FY25.

Grasim Industries said that its standalone business is undergoing a strategic transformation as it makes a focused entry into consumer-facing and digital sectors, specifically in decorative paints and B2B e-commerce for construction materials. These high-growth businesses, it said, are now set to complement Grasim’s traditional manufacturing-led strengths.

The company has directed most of the investment towards its new businesses such as Birla Opus paints and its B2B e-commerce. On a standalone basis, it has spent 65%, or Rs 2,300 crore of the total Rs 3,513 crore of capex on the aforementioned businesses, Grasim said.

Morgan Stanley has maintained its ‘equal-weight’ call on the stock as it believes that the company’s paints business is ramping up fast. Grasim’s market share in the decorative space has increased to high single digit in Jan-Mar from mid-single digit in the December quarter, the brokerage firm said. Morgan Stanley has Rs 2,975 as target price on the stock.

The company’s standalone EBITDA for the March quarter was Rs 447 crore, lower than Rs 787 crore recorded a year ago. For the financial year ended March 2025, Grasim revenue rose to Rs 31,563 crore from Rs 25,846 crore a year ago, while its EBITDA  expanded to Rs 2,857 crore, lower tan Rs 3,573 crore in FY24.

Grasim has recommended a dividend of Rs 10 per share for FY25 and the total outflow on account of the dividend would be Rs 681 crore.