Grasim Q4 FY26 Earnings Call: Paints Market Share Crosses 10%, Ultratech Hits Record EBITDA per Ton

Grasim Industries Ltd held its Q4 FY26 earnings call on May 20, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Grasim Delivers Record Revenue and 63rd Consecutive Dividend

• Consolidated revenue for FY25-26— reached Rs.1,75,431 crore ($18 bn+), reflecting an 18% CAGR from FY21-26.
• Standalone revenue for FY25-26— stood at Rs.41,039 crore, growing at a 27% CAGR from FY21-26.
• Cellulosic fibre Q4 FY26 revenue— grew 14% YoY to Rs.4,614 crore; full-year FY26 revenue was Rs.17,104 crore (up 8%).
• Caustic soda sales volume— hit a record 321,000 tonnes in Q4 FY26 and 1.232 million tonnes for full-year FY26.
• Grasim board declared a final dividend of 500% (Rs.10 per share)— for FY26, marking the 63rd consecutive year of uninterrupted dividends.
• Ultratech board declared Rs.240 per share dividend— for FY26, yielding Grasim ~Rs.4,000 crore in cash inflow.

Paints Revenue Doubles; Market Share Crosses 10%

• Birla Opus delivered 52% revenue growth YoY— in Q4 FY25-26 (like-to-like); ~71% excluding C-WIP; full-year FY26 revenue doubled vs FY24-25.
• Revenue market share reached ~10%— per internal retail study (March FY25-26), with QoQ share expanding ~90 bps and FY share up 370 bps over FY25.
• Distribution network expanded to 11,500 towns— with 50,000+ dealers, 146 depots, and 37,000 active tinting machines; institutional channel added 10,000+ sites in Q4.
• Installed capacity of 1,332 mn litres p.a.— representing 24% of industry; Kharagpur plant commercialised in October FY25-26, reducing average logistics distance by >30%.
• Price hikes of 2-6% in Phase 1 (Jan/Feb FY25-26)— and Phases 2&3 (April FY26-27) to offset raw material cost inflation (20-25% of COGS linked to crude derivatives).
• Management warned raw material inflation may persist— and demand elasticity will be fully tested in H1 FY26-27; secondary sales being monitored weekly.
• Priority sequence: become #2 decorative paints player— then reach Rs.10,000 crore revenue, then achieve profitability — timelines for #2 and Rs.10,000 crore targets not explicitly stated.

B2B Platform Doubles Revenue; No Major New Ventures Planned

• Birla Pivot revenue more than doubled YoY— in Q4 FY25-26; annual revenue guidance of Rs.8,500 crore (for FY25-26) is within striking distance.
• Platform serves 5,000+ pin codes— across 400+ cities with 5,000+ retail touchpoints, scaling steel, bitumen, copper, aluminium, and polymers.
• Birla Pivot CEO guided for EBITDA break-even— by exit of FY26-27 (FY27), possibly sooner, driven by strong revenue growth momentum.
• No new organic business investments— beyond the already announced Cellulosic Fiber expansion: 1,10,000 tonnes per annum Lyocell capacity at Harihar (first phase in progress, second phase to be announced).
• Management stated it currently has "enough on our plate"— and will stabilise cash flows before considering any further business ventures.
• Renewable energy revenue grew 60% YoY— in Q4 FY26; textiles business posted Rs.35 crore EBITDA vs an Rs.8 crore loss in Q4 FY25.

Ultratech Hits Record EBITDA/ton; Core Segments Show Resilience

• Ultratech Cement crossed 200 MTPA grey capacity— in April FY26 and is on track for 240+ MTPA by March FY28.
• Q4 FY26 total operating EBITDA per ton reached a record Rs.1,253— with cumulative efficiency gains of Rs.185 per ton over FY25 and FY26 combined.
• Cellulosic fibre full-year FY26 EBITDA rose 15%— to Rs.1,751 crore; Q4 FY26 EBITDA doubled to Rs.588 crore.
• Specialty chemicals contributed 27% of revenue— and chlorine derivatives 22%; caustic soda sales hit record volumes.
• Insulator division carries a big order backlog— exceeding current market demand; porcelain (no capacity expansion), polymer long rods (sold out, further evaluation), polymer hollow composites (under consideration).
• Insulator sales and EBITDA for FY25-26 not disclosed— segment disclosure was stopped several years ago, per management.

Peak Capex Behind; Rs.2,880 Crore Deployed to Maintain AB Capital Stake

• Management confirmed Grasim's peak capex phase is behind— exact division-level capex targets for FY26-27 to be shared in Q1 FY26-27 update.
• In FY26-27, ~Rs.2,900 crore out of ~Rs.4,000 crore divisible dividend— from the cement subsidiary was allocated to Aditya Birla Capital as a one-off measure.
• Grasim board approved Rs.2,880 crore investment— to maintain 52.3% stake in Aditya Birla Capital on a fully diluted basis; AB Capital board approved Rs.4,000 crore capital raise via preferential equity.
• Management confirmed a longer-term intent— to maintain >50% shareholding in both Ultratech Cement and Aditya Birla Capital.
• Surplus from core businesses reinvested in new growth businesses— this reinvestment is ongoing, not a one-off.

Industry Growth Picks Up; Paint Losses Expected to Narrow

• Management expects decorative paints industry to move to double-digit growth— in FY27 (current fiscal), up from single-digit.
• Birla Opus targeting to cross 15,000 towns by end of FY27— from 11,500 currently; confident of high double-digit growth in FY27.
• Paints profitability improvement expected as scale grows— via fixed-cost absorption and variable-cost optimisation; no specific EBITDA guidance or break-even timeline provided.
• Quarterly pre-tax losses of ~Rs.3 billion will decline in FY26-27— per management guidance, contrary to the possibility of remaining sticky.
• Management intends to maintain competitive market pricing— and the ongoing 10% scheme in FY26-27, adjusting actions as needed.
• Birla Opus now offers a full product stack— comparable to peers, with exclusive products in franchisee stores and like-for-like parity with competition, per management.