Grasim Industries shares rally 6% to hit 52-week high; check what analysts said post-Q4 earnings

Grasim Industries shares jumped 6% to hit their 52-week high of ₹3,153.20 apiece on Thursday, May 21, a day after the firm reported a positive quarter.

The Aditya Birla Group’s flagship firm posted a consolidated net profit rise of nearly 31% year-on-year in the March quarter on healthy revenue growth. The NSE filings showed that the company’s consolidated net profits (attributable to owners) rose 31% YoY to ₹1,957 crore in the fourth quarter, compared with ₹1,496 crore in the same period a year earlier.

The consolidated statements also showed that the overall revenue from core operations advanced 15% to ₹51,101 crore, from ₹44,267 crore in the same period a year ago. Grasim Industries’ building materials business turned out to be the major contributor to the increase in revenues for the quarter.

Grasim Industries’ healthy overall revenue rise in the fourth quarter was a result of a rise in income across the business verticals, especially in the building materials and financial services businesses.

The company’s building material revenues surged 19% YoY to ₹30,042 crore in the March quarter, from ₹25,232 crore in the same quarter of the previous fiscal year.

Grasim Industries’ financial services revenues rose 10% to ₹13,422 crore in the period under review, compared year-on-year with ₹12,196 crore in the same period a year earlier. The data further showed that the company’s operational margin expanded to 15.37% in the March quarter, from 14.03% in the same period last year. Grasim Industries’ net profit margin advanced to 7.44%, from 6.71% a year ago.

Analysts' views on earnings

According to Morgan Stanley, the paints business continued to gain traction, with revenue rising around 19% quarter-on-quarter. Market share is estimated to have increased by at least 150 basis points sequentially, exiting the year at over 11%, with industry growth in paints expected to remain in double digits in FY27.

Jefferies also highlighted that the paints segment reported robust revenue growth, with an expanding market share trajectory expected to continue in FY27. Additionally, Birla Pivot is estimated to have grown around 30% sequentially, with the B2B e-commerce platform seen turning profitable by the end of FY27, while multiple rerating drivers, including paints' value unlocking and scaling of new businesses, remain in focus.

Grasim’s dividend details

Grasim Industries’ board also considered and recommended a dividend issue of ₹10 per share with a face value of ₹2 apiece for shareholders, subject to member approval in the upcoming annual meeting, as per the NSE filing.

If approved, every eligible shareholder will receive a dividend payment of ₹10 per share for every share they own in Grasim Industries, up to one day ahead of the pre-set record date of the corporate action.

The board “recommended a dividend of 500% at the rate of ₹10 per equity share of face value of ₹2 each for the financial year ended March 31, 2026, subject to approval of shareholders at the ensuing Annual General Meeting (AGM) of the company," the company had nformed the stock exchanges.

Grasim Industries share price

At 1:35 PM, Grasim Industries shares were trading at ₹3,148.10 apiece on the National Stock Exchange, surging 5.96%.

In the last five days, shares of the firm have gained 7%, while they have zoomed 13% for a month’s period. For six months’ time, they have climbed 15%. From the beginning of the year, Grasim Industries shares have jumped 10%.

The company has a market capitalisation of ₹2.14 lakh crore.