Grasim Industries Q1 Results Review - Little To Cheer: ICICI Securities

ICICI Securities Report

Grasim Industries Ltd. Q1 FY25 was in the limelight for it being the first quarter of its commercial launch in the paints segment. While revenues from this segment stood at Rs 814 million (can be much higher, if one factors in the sale of production during trial-runs), it is too early to judge the performance of this maiden foray.

Having said that, Q1 FY25 Ebitda of Rs 3.25 billion (down 52% YoY/38% QoQ, being 41% below our estimate) offered little reason to cheer. Higher than-expected losses for the paints and b2b e-commerce segments along with subdued VSF performance shoulder the blame.

We prefer to wait on the sidelines given –

1. limited visibility on revenue and Ebitda traction for paints (even as we maintain our Rs 30 billion revenue forecast for FY26E and continue to value the segment at 5 times FY26E price/sales); and

2. no change in levers for its standalone business as well as for its subsidiary UltraTech Cement Ltd.

Maintain 'Hold'.

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