Q2 FY27 results analysis · November 13, 2026
Grasim Industries Q2 FY27 Results Analysis: PAT Swings to Loss, Revenue Grows 25.58%
−34.7%PAT year on year, Rs. 1,029.42 Cr
Source: Quarterly results filing (BSE)
Quick summary
Grasim Industries Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 50,105.18 Cr (+25.58% YoY) and PAT growth of -34.70% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 13, 2026 |
|---|---|
| Revenue (Q2) | Rs. 50,105.18 Cr (+25.58% YoY) |
| PAT (Q2) | Rs. 1,029.42 Cr (-34.70% YoY) |
| EBITDA margin | 13.00% (-8 bps YoY) |
| EPS (Q2) | Rs. -3.45 |
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue | Ahead YoY, "seasonally softer QoQ" | +25.58% YoY but +2.85% QoQ (grew, not softer) | Partially |
| Margin level | "holding ~16%... is the question the print will answer" vs 13% in Q2FY26 | 13.00% — fell back to the year-ago level, not 16% | Contradicted |
| Chemicals | Sequential headwind; "Q2TD chemical prices sit sharply below Q1 levels" | Result −33.66% QoQ; margin −680 bps QoQ | Played out |
| Cement | Volume tailwind vs +12.5–13.1% core-sector prints | Building Material revenue +23.03% YoY but −5.05% QoQ; volumes not disclosed in filing | Partially |
| Textiles/VSF drag | Apparel exports −9.10% weighing downstream | CF result +49.05% YoY (off a weak base) — better than feared | Contradicted |
| AVNB one-off (watch item) | Impact of Nackawic idling on JV profits | Rs.766.73 crore exceptional booked; ~Rs.625 crore rights-issue support approved | Played out |
| Balance-sheet normalization | Standalone net-debt normalization commentary | D/E rose to 1.43 from 1.31; inventories +17.07% vs March | Partially |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Consolidated revenue Rs.2 lakh crore, FY27 | Chairman's AGM guidance, 21 Aug 2026 | H1 revenue 98,821.38 = 49.4% of target; H2 requirement ~1,01,178.62 (~2.4% above H1 level) | On Track |
| Standalone capex Rs.3,157 crore, FY27 | Q1 FY27 earnings call | H1 spend 1,099.62 = 34.8% of plan | On Track |
| Solenergi completion "around December" | Q1 FY27 earnings call | CCI approval received 30 Oct 2026; completion pending | On Track |
| Margin "stable at 16%" across recent quarters | Q1 FY27 results announcements | 13.00% this quarter — seasonal + inventory cost, as management itself had flagged | Contradicted this quarter |
| Financial Services scaling (lending +32% YoY in Q1) | Q1 FY27 disclosures | FS revenue +32.37% YoY, result +48.93% YoY | Confirmed |
Key Investment Insights
Key Positives
- Consolidated revenue grew 25.58% YoY to 50,105.18 crore and 2.85% QoQ despite the seasonally weak monsoon quarter
- EBITDA* (company basis) rose 24.85% YoY to 6,513.10 crore
- Financial Services revenue grew 32.37% YoY with segment result up 48.93% YoY to 1,842.45 crore
- Building Material revenue grew 23.03% YoY to 27,377.81 crore with segment result up 19.02% YoY
- Cellulosic Fibres segment result grew 49.05% YoY to 521.51 crore off a depressed base
- H1 revenue of 98,821.38 crore is 49.4% of the FY27 2 lakh crore consolidated revenue guidance, on track
- Standalone revenue grew 32.63% YoY to 12,746.50 crore
- Current ratio improved to 2.32 from 2.07 YoY; debtors turnover improved to 18.05x from 17.10x
Risk Factors
- Owners' PAT swung to a loss of 234.08 crore (−139.37% YoY) on a 766.73 crore AVNB impairment/exposure provision
- Effective tax rate spiked to 61.82% from 25.79% in Q1 and 39.10% YoY, unexplained in the filing
- EBITDA* margin compressed to 13.00% from 16.58% QoQ; every industrial segment except Financial Services lost margin sequentially
- Chemicals segment result fell 33.66% QoQ and 10.81% YoY with margin down ~680 bps QoQ to 11.80%
- H1 consolidated operating cash flow was negative 13,156.74 crore; FCF was negative 22,341.53 crore
- Debt-equity rose to 1.43 from 1.31 QoQ and 1.25 YoY; inventories rose 17.07% vs March
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