Grasim Industries (GRASIM) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 consolidated revenue rose 9% year-over-year to INR 34,793 crore, with standalone revenue at INR 8,120 crore; EBITDA declined 9% to INR 4,668 crore due to lower cement profitability and upfront investments in paints.

• PAT (owners' share, adjusted) declined 41% year-over-year to INR 899 crore; sequentially, revenue and EBITDA improved 4% and 15% respectively.

• The company leverages a diversified portfolio, focusing on growth in paints, B2B e-commerce, and specialty fibers.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2024 were approved by the Board of Directors on 10 February 2025.

• Review reports from joint auditors confirm compliance with Indian Accounting Standards and SEBI regulations, with no material misstatements identified.

Financial highlights

• Trailing 12-month consolidated revenue reached nearly INR 140,000 crore; Q3 FY25 revenue was INR 34,792.85 crore, up from INR 31,965.48 crore in Q3 FY24.

• Cement volumes grew 11% year-over-year, but realization was down 10%; chemicals business EBITDA rose 25% year-over-year, driven by higher caustic soda prices and improved chlorine derivatives profitability.

• Financial services lending portfolio grew 27% year-over-year to over INR 146,000 crore; AUM up 23% year-over-year.

• Renewable energy installed capacity increased 37% since March 2024, reaching 1.2 GW, with a target of 2 GW by year-end.

• Standalone revenue up 27% year-over-year; standalone EBITDA margin at 5% vs 10% YoY.

Outlook and guidance

• Paints business aims to exit FY25 with high-single-digit market share, maintaining a three-year breakeven target post full-scale operations.

• CapEx for paints is nearly complete, with the sixth plant expected online in Q1 FY26; cumulative capex for paints at INR 9,015 crore as of Dec 2024 (~90% of project cost).

• B2B e-commerce on track for $1 billion revenue by FY27.

• Board approved 110 KTPA Lyocell plant; first phase by mid-2027 at INR 1,350 crore investment.

• CapEx guidance for FY26 will be provided in the Q4 call.