GRASIM Q4 FY26 Results Analysis: PAT Jumps 30.9%, Cellulosic Fibres EBIT Jumps 100.3%

GRASIM's Q4 FY26 numbers came in strong, with revenue of Rs. 51,101.11 Cr (+15.50% YoY) and PAT growth of +27.80% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

GRASIM delivered strong Q4 FY26 with 15.5% revenue growth and 30.9% PAT growth, driven by operating leverage (200 bps). Key alpha drivers include Birla Pivot achieving Rs.8,500 crore ARR ahead of FY27 guidance, Cellulosic Fibres turnaround (100.3% EBIT growth, 550 bps margin expansion), and Birla Opus market share gain of 300+ bps. Debt-funded capex and lending expansion pressuring free cash flow but management is executing well against stated targets.

Key Investment Insights

Key Positives

• Revenue grew 15.5% YoY to Rs.51,101 crore with 18.2% FY26 growth
• PAT to owners surged 30.9% YoY to Rs.1,958 crore, EPS at Rs.28.87
• EBITDA margin expanded 134 bps YoY to 21.34%
• Cellulosic Fibres EBIT grew 100.3% YoY, margin expanded 550 bps to 12.7%
• Building Materials revenue up 19.1% YoY, EBIT up 22.3% YoY
• Birla Pivot ARR achieved Rs.8,500 crore in Q3 FY26, beating FY27 target early
• Financial Services lending portfolio grew 30% YoY to Rs.1,90,386 crore
• Operating leverage delivered 200 bps as expense growth trailed revenue

Risk Factors

• Chemicals EBIT grew only 2.8% YoY with margin compression 40 bps
• Debt-equity ratio increased to 1.32x from 1.16x FY25
• Free cash flow negative at Rs.33,436 crore due to capex and lending expansion
• Standalone entity reported loss of Rs.163.54 crore in Q4 FY26
• Purchases of Stock-in-Trade surged 79% YoY reflecting inventory build-up
• Chlorine prices remained negative impacting chemicals profitability