Q1 2027 Grasim Industries Ltd Earnings Call

August 12, 2026

Operator: Ladies and gentlemen, good day and welcome to the Q1 FY27 earnings call hosted by Grasim Industries. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. I now hand over the conference call to Mr. Ankit Panchmatia, Head Investor Relations of Grasim Industries. Thank you, and over to you, Mr. Ankit.

Speaker #1: Hosted by Grasim Industries. As a reminder, all participant lines will be in listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes.

Speaker #1: Should you need assistance during this conference call, please signal an operator by pressing star, then zero, on your touch-tone phone. I now hand over the conference call to Mr. Ankit Panchmatia, Head of Investor Relations at Grasim Industries.

Speaker #1: Thank you, and over to you, Mr. Ankit.

Speaker #3: Yeah, hi. Thank you, sir. Good evening, and thank you for joining Grasim's first quarter financial year 2027 earnings call. The financial statements, press release, and presentation are already uploaded on the websites of the stock exchanges, and on our website for your reference.

Ankit Panchmatia: Yeah, hi. Thanks, Diksha. Good evening, and thank you for joining Grasim's first quarter financial year 2027 earnings call. The financial statements, press release, and presentation are already uploaded on the websites of stock exchanges and our website for your reference. For Safe Harbor, kindly refer to cautionary statement highlighted in the last slide of our presentation. Our management team is present here on this call to discuss our results and business performance. We have with us Mr. Himanshu Kapania, Managing Director, Grasim Industries, and Business Head, Birla Opus Paints. Mr. Hemant Kadel, Chief Financial Officer of Grasim Industries. We also have with us Mr. Jayant Dhobley, Business Head of Chemicals, Cellulosic Fashion Yarn, and Insulator Business. Mr. Vadiraj Kulkarni, Business Head of Cellulosic Fibres Business. Mr. Sachin Sahay, CEO, Birla Opus Paints, and Mr. Sandeep Komaravelly, CEO, Birla Pivot, which is our B2B e-commerce business.

Speaker #3: For Safe Harbor, kindly refer to the customer statement highlighted on the last slide of our presentation. Our management team is present here on this call to discuss our results and business performance.

Speaker #3: We have with us Mr. Himanshu Kapania, Managing Director, Grasim Industries, and Business Head, Birla Opaspains; and Mr. Hemant Kadel, Chief Financial Officer of Grasim Industries.

Ankit Panchmatia: We have with us Mr. Himanshu Kapania, Managing Director, Grasim Industries, and Business Head, Birla Opus Paints. Mr. Hemant Kadel, Chief Financial Officer of Grasim Industries. We also have with us Mr. Jayant Dhobley, Business Head of Chemicals, Cellulosic Fashion Yarn, and Insulator Business. Mr. Vadiraj Kulkarni, Business Head of Cellulosic Fibres Business. Mr. Sachin Sahay, CEO, Birla Opus Paints, and Mr. Sandeep Komaravelly, CEO, Birla Pivot, which is our B2B e-commerce business.

Speaker #3: We also have with us Mr. Jayan Doble, Business Head of Chemicals, Cellulosic Fashion Yarn, and Insulator Business, and Mr. Wariraj Kulkarni, Business Head of Cellulosic Fibers Business.

Speaker #3: Mr. Sachin Sahai, CEO, Birla Opaspains, and Mr. Sandeep Kumravelli, CEO, Birla Pivot, which is our B2B e-commerce business. Let me now hand over the call to Hemanshu sir for his opening remarks.

Ankit Panchmatia: Let me now hand over the call to Himanshu, sir for his opening remarks. Over to you, sir.

Speaker #3: Over to you, sir.

Speaker #4: Thank you, Ankit. Good evening, good afternoon, or good morning, as applicable to each one of you. And thank you for joining the Grasim Q1 2027 financial call.

Himanshu Kapania: Thank you, Ankit. Good evening, good afternoon, or good morning, as applicable to each one of you, and thank you for joining the Grasim Q1 Financial Call 2027. Let me begin with the headlines. Financial year 2026 was a landmark year for Grasim, and we continued the same momentum entering financial year 2027. In Q1 FY27, we achieved highest ever revenues of INR 48,716 crores, with a year-over-year growth of 21%. I remember not too far away, two years ago exactly, the quarterly run rate of revenues used to be around INR 32 to 33 thousand crores, and today we are already reaching about a quarterly run rate of nearly INR 50,000 crores. A whopping 1.5 times growth in quarterly revenues, which is a two-year CAGR of 25%. I want to draw your attention to the consistency behind these quarterly numbers because a single strong quarter proves very little.

Speaker #4: Let me begin with the headline. Financial year '26 was a landmark year for Grasim, and we continued the same momentum, ending financial year '27.

Speaker #4: In Quarter One, FY27, we achieved our highest ever revenues of ₹48,716 crore, with a year-over-year growth of 21%. I remember, not too far back—exactly two years ago—the quarterly run rate of revenues used to be around ₹32,000 to ₹33,000 crore.

Himanshu Kapania: I remember not too far away, two years ago exactly, the quarterly run rate of revenues used to be around INR 32 to 33 thousand crores, and today we are already reaching about a quarterly run rate of nearly INR 50,000 crores. A whopping 1.5 times growth in quarterly revenues, which is a two-year CAGR of 25%. I want to draw your attention to the consistency behind these quarterly numbers because a single strong quarter proves very little.

Speaker #4: And today, we are already reaching about a quarterly run rate of nearly ₹50,000 crores. A whopping 1.5 times growth in quarterly revenues, which is a two-year CAGR of 25%.

Speaker #4: I want to draw your attention to the consistency behind these quarterly numbers, because a single strong quarter proves very little. This is now our 24th consecutive quarter of Y-o-Y revenue growth.

Himanshu Kapania: This is now our 24th consecutive quarter of Y-on-Y revenue growth. What that tells you is that our performance is not resting on one business or one favorable cycle. The core, which is our cements, Cellulosic Fibres, Chemicals, and Financial Services business, are compounding. The new engines, which are our Paints and B2B e-commerce business, are multiplying. I would like to draw an analogy here that this combination of core and growth business portfolio is doing what an all-weather portfolio is meant to do, that is deliver consistent returns. A key highlight this quarter is the accelerating momentum in our standalone business. Standalone revenues for the Q1 of 2027 grew at a faster rate, that is 28%, year over year to INR 11,795 crores. More importantly, it is incrementally becoming a larger and more meaningful contributor to Grasim's consolidated growth journey.

Speaker #4: What that tells you is that our performance is not resting on one business or one favorable cycle. The core, which is our cement, cellulose fiber, chemicals, and financial services businesses, are compounding.

Speaker #4: The new engines, which are our paint and B2B e-commerce businesses, are multiplying. I would like to draw an analogy here: this combination of core and growth business portfolio is doing what an all-weather portfolio is meant to do.

Himanshu Kapania: The new engines, which are our Paints and B2B e-commerce business, are multiplying. I would like to draw an analogy here that this combination of core and growth business portfolio is doing what an all-weather portfolio is meant to do, that is deliver consistent returns.

Speaker #4: That is, deliver consistent returns. A key highlight this quarter is the accelerating momentum in our standalone business. Standalone revenues for Q1 2027 grew at a faster rate, that is, by 28%.

Himanshu Kapania: A key highlight this quarter is the accelerating momentum in our standalone business. Standalone revenues for the Q1 of 2027 grew at a faster rate, that is 28%, year over year to INR 11,795 crores. More importantly, it is incrementally becoming a larger and more meaningful contributor to Grasim's consolidated growth journey.

Speaker #4: Year on year, to ₹11,795 crore. More importantly, it's incrementally becoming a larger and more meaningful contributor to Grasim's consolidated growth journey. EBITDA more than doubled with a 107% growth to ₹1,094 crore.

Himanshu Kapania: EBITDA more than doubled with a 107% growth to INR 1,094 crores. This clearly shows that the standalone portfolio is not only growing faster but also scaling with speed and improving profitability. Let me now start with some macros, then we will take you through the business one by one. The global economy continues to navigate an increasingly complex landscape. While inflation has moderated across several developing markets and central banks like U.S. Federal Reserve has maintained a cautious and data-dependent stance. Inflation has eased materially from its peak. The Federal Open Market Committee has still reiterated that the path of monetary policy will continue to be guided by incoming data, particularly on inflation and labor markets. China continues to face a relatively subdued recovery led by weakness in its property sector and manufacturing activity. While Europe is witnessing modest growth amidst softer industrial demand.

Speaker #4: This clearly shows that the standalone portfolio is not only growing faster but also scaling its speed and improving profitability. Let me now start with some macros, then we'll take you through the businesses one by one.

Speaker #4: The global economy continues to navigate an increasingly complex landscape. While inflation has moderated across several developing markets and central banks like the US Federal Reserve have maintained a cautious and data-dependent stance, inflation has eased materially from its peak. The Federal Open Market Committee has still reiterated that the path of monetary policy will continue to be guided by incoming data, particularly on inflation and labor markets.

Himanshu Kapania: Inflation has eased materially from its peak. The Federal Open Market Committee has still reiterated that the path of monetary policy will continue to be guided by incoming data, particularly on inflation and labor markets. China continues to face a relatively subdued recovery led by weakness in its property sector and manufacturing activity. While Europe is witnessing modest growth amidst softer industrial demand.

Speaker #4: China continues to face a relatively subdued recovery, led by weakness in its property sector and metrics in activity. While Europe is witnessing modest growth amidst softer industrial demand, geopolitical developments have emerged as one of the most significant variables shaping business sentiment and global trade.

Himanshu Kapania: Geopolitical development has emerged as one of the most significant variables shaping business sentiments and global trade. The ongoing conflicts in parts of Europe and the Middle East, coupled with the evolving trade policy and supply chain realignments have increased uncertainty across global markets. These developments have at times disrupted shipping routes, elongated transit times, and created intermittent challenges around availability and pricing of key commodities and raw materials. Freight costs and energy prices have also witnessed bouts of volatility, making procurement planning and inventory management significantly more dynamic than in the past. Against this backdrop, India continues to remain a bright spot in the global economy. More importantly, the RBI, in its latest Monetary Policy Committee meeting, acknowledged the resilience of domestic growth and revised its FY27 GDP growth forecast upwards to 6.7%, reflecting confidence in India's underlying economic fundamentals.

Speaker #4: The ongoing conflicts in parts of Europe and the Middle East, coupled with evolving trade policies and supply chain realignments, have increased uncertainty across global markets.

Speaker #4: These developments have, at times, disrupted shipping routes, elongated transit times, and created intermittent challenges around the availability and pricing of key commodities and raw materials.

Speaker #4: Freight costs and energy prices have also witnessed bouts of volatility, making procurement planning and inventory management significantly more dynamic than in the past. Against this backdrop, India continues to remain a bright spot in the global economy.

Himanshu Kapania: Freight costs and energy prices have also witnessed bouts of volatility, making procurement planning and inventory management significantly more dynamic than in the past. Against this backdrop, India continues to remain a bright spot in the global economy. More importantly, the RBI, in its latest Monetary Policy Committee meeting, acknowledged the resilience of domestic growth and revised its FY27 GDP growth forecast upwards to 6.7%, reflecting confidence in India's underlying economic fundamentals.

Speaker #4: More importantly, the RBI, in its latest Monetary Policy Committee meeting, acknowledged the resilience of domestic growth and revised its FY27 GDP growth forecast upwards to 6.7%, reflecting confidence in India's underlying economic fundamentals.

Speaker #4: Strong domestic consumption, sustained public infrastructure investments, improving private capital expenditure, and healthy financial sector fundamentals continue to underpin economic growth. Let me now start on business performance, beginning with Paint.

Himanshu Kapania: Strong domestic consumption, sustained public infrastructure investments, improving private capital expenditure, and healthy financial sector fundamentals continue to underpin economic growth. Let me now start on business performance and starting with Paints. Two years ago, Birla Opus started with a promise. A promise to not merely participate in the industry, but to fundamentally reshape it. We articulated an ambition of building India's second-largest decorative paints company and, more importantly, creating a brand that would stand for quality, innovation, reliability, and consumer trust. Today, just two years later, I am proud to say that Birla Opus has already become one of the largest players by installed manufacturing capacity and emerged India's third-largest decorative paints brand by revenue. This quarter, Birla Opus delivered revenue of INR 1,661 crores, up by 64% year on year and 17% sequentially.

Speaker #4: Two years ago, Birla Opus started with a promise—a promise not merely to participate in the industry, but to fundamentally reshape it. We articulated an ambition of building India's second-largest decorative paint company and, more importantly, creating a brand that would stand for quality, innovation, reliability, and consumer trust.

Himanshu Kapania: We articulated an ambition of building India's second-largest decorative paints company and, more importantly, creating a brand that would stand for quality, innovation, reliability, and consumer trust. Today, just two years later, I am proud to say that Birla Opus has already become one of the largest players by installed manufacturing capacity and emerged India's third-largest decorative paints brand by revenue. This quarter, Birla Opus delivered revenue of INR 1,661 crores, up by 64% year on year and 17% sequentially.

Speaker #4: Today, just two years later, I'm proud to say that Birla Opus has already become one of the largest players by installed manufacturing capacity and has emerged as India's third-largest decorative paint brand by revenue.

Speaker #4: This quarter, Birla Opus delivered revenue of ₹1,661 crore, up by 64% year on year and 17% sequentially. We've strengthened our number three position with a market share gain of a further 30 basis points sequentially.

Himanshu Kapania: We have strengthened our number 3 position with market share gain of further 30 basis points sequentially, that is on a quarter-on-quarter basis. When you include Birla White Putty, our combined share is now nearing the early teens. For considering the total market size of Indian decorative paints industry, as highlighted in slide number 25 of our earnings presentation, we include reported revenue of all the listed paints and putty companies. Plus, for overall picture, we further include segment-wide sales of remaining companies in the organized sector, estimating their segment-wide sales of wood finish, construction chemicals, decorative paints and putty, et cetera. Hence, our market share is representation of entire organized decorative paints industry. Let me be plain about what this means. In roughly 2 years, we built a revenue share position that took most many decades. This was not an easy quarter to grow in.

Speaker #4: That is on a quarter-on-quarter basis. And when you include Birla White Putty, our combined share is now nearing the early teens. For considering the total market size of the Indian decorative paint industry, as highlighted in slide number 25 of our earnings presentation, we included reported revenue of all the listed paints and putty companies.

Speaker #4: Plus, for the overall picture, we further include segment-wise sales of the remaining companies in the organized sector, estimating their segment-wise sales of wood finish, construction chemicals, decorative paints, and putty, etc.

Himanshu Kapania: Plus, for overall picture, we further include segment-wide sales of remaining companies in the organized sector, estimating their segment-wide sales of wood finish, construction chemicals, decorative paints and putty, et cetera. Hence, our market share is representation of entire organized decorative paints industry. Let me be plain about what this means. In roughly 2 years, we built a revenue share position that took most many decades. This was not an easy quarter to grow in.

Speaker #4: Hence, our market share is a representation of the entire organized decorative paints industry. Let me be plain about what this means: in roughly two years, we built a revenue share position that took most many decades.

Speaker #4: This was not an easy quarter to grow in. We absorbed a genuine and unprecedented raw materials cost shock. We chose to manage it through phased price increases rather than one blunt correction, and the cumulative impact in Q1 FY27 was 8.8%. Some of the price increase impact has flowed into Q2 of FY27.

Himanshu Kapania: We absorbed a genuine and unprecedented raw materials cost shock. We chose to manage it through phased price increases rather than one blunt correction, and the cumulative impact in Q1 FY27 was 8.8%. Some of the price increase impact has flown to Q2 of FY27. That decision narrowed our price differential with the industry. Some of you will ask whether we have given up our value advantage. We have not, and our resolve is unchanged. We will prioritize market share gains, and we will deliver the revenues we have guided to. We are building a franchise, not optimizing a quarter. On profitability, losses narrowed during the quarter, partly aided by lower cost carrying inventory and lower advertising spends compared to Q4 FY26, when we have invested heavily behind high impact campaigns around the T20 World Cup and IPL.

Speaker #4: That decision narrowed our price differential with the industry. Some of you will ask whether we have given up our value advantage. We have not, and our resolve is unchanged.

Speaker #4: We will prioritize market share gains, and we will deliver the revenues we have guided to. We are building a franchise, not optimizing a quarter.

Himanshu Kapania: We are building a franchise, not optimizing a quarter. On profitability, losses narrowed during the quarter, partly aided by lower cost carrying inventory and lower advertising spends compared to Q4 FY26, when we have invested heavily behind high impact campaigns around the T20 World Cup and IPL.

Speaker #4: On profitability, losses narrowed during the quarter, partly aided by lower cost of carrying inventory and lower advertising spend compared to Q4 FY26, when we had invested heavily behind high-impact campaigns around the T20 World Cup and IPL.

Speaker #4: In the current quarter, that is Q1 FY27, we saw normalized advertising intensity. Having said that, our commitment to brand building remains unchanged. Advertising spend will continue to be elevated to capture demand generation opportunities, with higher investments expected during the seasonally stronger periods, as we continue to build Birla Opus into a powerful national brand.

Himanshu Kapania: In the current quarter, that is Q1 FY27, we saw normalized advertising intensity. Having said that, our commitment to brand building remains unchanged. Advertising spends will continue to be elevated to demand generation opportunities with higher investments expected during the seasonally stronger periods, as we continue to build Birla Opus into a powerful national brand. Our performance this quarter is driven by disciplined execution across 5 strategic pillars. I want to cover them one by one. First, distribution is emerging as a powerful engine of scale. Birla Opus has rapidly expanded its presence to 12,100 towns with more than 55,000 dealers built at least once, and 1,450 plus exclusive branded franchise retail outlets spread over 800 towns. This gives us one of the deepest and most visible market footprints in the industry, enabling stronger consumer access, sharper brand experience, and faster conversion at the point of sale.

Speaker #4: Our performance this quarter is driven by disciplined execution across five strategic pillars. I want to cover them one by one. First, distribution is emerging as a powerful engine of scale.

Himanshu Kapania: I want to cover them one by one. First, distribution is emerging as a powerful engine of scale. Birla Opus has rapidly expanded its presence to 12,100 towns with more than 55,000 dealers built at least once, and 1,450 plus exclusive branded franchise retail outlets spread over 800 towns. This gives us one of the deepest and most visible market footprints in the industry, enabling stronger consumer access, sharper brand experience, and faster conversion at the point of sale.

Speaker #4: Birla Opus has rapidly expanded its presence to 12,100 towns, with more than 55,000 dealers built at least once, and 1,450-plus exclusive branded franchise retail outlets spread over 800 towns.

Speaker #4: This gives us one of the deepest and most visible market footprints in the industry, enabling stronger consumer access, sharper brand experience, and faster conversion at the point of sale.

Speaker #4: As per our estimates, this is now the largest organized paint retail network in India, with significant strategic advantage for a brand that is still in the early phase of its growth journey.

Himanshu Kapania: As per our estimates, this is now the largest organized paint retail network in India, a significant strategic advantage for a brand that is still in the early phase of its growth journey. Our institutional channel is also scaling its momentum, growing 85% year-on-year and 11% quarter-on-quarter, with nearly 11,000 project sites built during the quarter. Birla Opus products have secured 83 plus specification approvals from various governments and other departments across cities, with a similar number under different stages of approval. With a robust pipeline of 47,000 sites at various stages of work, the institutional business is becoming a meaningful long-term growth vector. Second, our engagement with contractors and influencers is building advocacy at scale. Strong consumer demand and deep contractor connects continue to drive secondary sales, with growing active contractors and painters applying Birla Opus products during the quarter.

Speaker #4: Our institutional challenge is also scaling, with momentum growing 85% year on year and 11% quarter on quarter, with nearly 11,000 project sites built during the quarter.

Speaker #4: Birla Opus products have secured over 83 specification approvals from various government and other departments across cities, with a similar number at different stages of approval.

Speaker #4: With a robust pipeline of 47,000 sites at various stages of work, the institutional business is becoming a meaningful long-term growth vector. Second, our engagement with contractors and influencers is building advocacy at scale.

Himanshu Kapania: With a robust pipeline of 47,000 sites at various stages of work, the institutional business is becoming a meaningful long-term growth vector. Second, our engagement with contractors and influencers is building advocacy at scale. Strong consumer demand and deep contractor connects continue to drive secondary sales, with growing active contractors and painters applying Birla Opus products during the quarter.

Speaker #4: Strong consumer demand and deep contractor connections continue to drive secondary sales, with growing numbers of active contractors and painters applying Birla Opus products during the quarter.

Speaker #4: This is an important validation of product quality and trust, because every contractor or painter who chooses Birla Opus is effectively putting their own reputation behind our brand.

Himanshu Kapania: This is an important validation of product quality and trust, because every contractor or painter who chooses Birla Opus is effectively putting their own reputation behind our brand. Our digital-first contractor platform, Opus ID, is strengthening this relationship further by creating a more connected, rewarding, and scalable engagement model. We continue to elevate the painters and contractors ecosystem through industry-leading schemes and loyalty benefits that remain unmatched. We are happy to report, until now, nearly 925,000 painters and contractors have applied our products at least once and experienced Birla Opus quality. Lakhs of these contractors return every month to continue applying our products. At the same time, Birla Opus is gaining strong traction with architects and interior designers, with our A&ID partner network now crossing 4,400 active firms across 100 plus towns, making it the second-largest A&ID network in the industry.

Speaker #4: Our digital contractor platform, Opus ID, is strengthening this relationship further by creating a more connected, rewarding, and scalable engagement model. We continue to elevate the painters and contractors' ecosystem through industry-leading schemes and loyalty benefits that remain unmatched.

Speaker #4: We are happy to report that, until now, nearly 9,025,000 painters and contractors have applied our products at least once and experienced Birla Opus quality, and lakhs of these contractors return every month to continue applying our products.

Himanshu Kapania: We are happy to report, until now, nearly 925,000 painters and contractors have applied our products at least once and experienced Birla Opus quality. Lakhs of these contractors return every month to continue applying our products. At the same time, Birla Opus is gaining strong traction with architects and interior designers, with our A&ID partner network now crossing 4,400 active firms across 100 plus towns, making it the second-largest A&ID network in the industry.

Speaker #4: At the same time, Birla Opus is gaining strong traction with architects and interior designers, with the AID partner network now crossing 4,400 active firms across 100-plus towns, making it the second largest AID network in the industry.

Speaker #4: This expanding influencer ecosystem strengthens our premium positioning and improves our ability to shape demand at the design and specification stage. Third, our product portfolio is evolving towards premiumization and sharper market relevance.

Himanshu Kapania: This expanding influencer ecosystem strengthens our premium positioning and improves our ability to shape demand at the design and specification stage. Third, our product portfolio is evolving towards premiumization and sharper market relevance. During Q1 FY27, Birla Opus launched 10 new products to strengthen its exclusive range for institutional, franchise channels, and regular products for dealer channels. These launches deepen our participation in high-potential segments and expand our ability to serve customers across price points, applications, and aspirations. With this, the portfolio has grown to 228 products and 1,945 SKUs, giving Birla Opus the depth and flexibility required to compete at national scale. Importantly, the premium and luxury portfolio now contributes approximately 65% of SIP value, reinforcing the strength of our premiumization journey and improving the quality of our revenue mix. This also puts a fact forward that we did not buy shares at the bottom of the market.

Speaker #4: During quarter one, fiscal year 2027, Birla Opus launched 10 new products to strengthen its exclusive range for institutional franchise channels and regular products for dealer channels.

Speaker #4: These launches deepen our participation in high-potential segments and expand our ability to serve customers across price points, applications, and aspirations. With this, the portfolio has grown to 228 products and 1,945 SKUs, giving Birla Opus the depth and flexibility required to compete at national scale.

Himanshu Kapania: These launches deepen our participation in high-potential segments and expand our ability to serve customers across price points, applications, and aspirations. With this, the portfolio has grown to 228 products and 1,945 SKUs, giving Birla Opus the depth and flexibility required to compete at national scale.

Speaker #4: Importantly, the premium and luxury portfolio now contributes approximately 65% of sales value, reinforcing the strength of our premiumization journey and improving the quality of our revenue mix.

Himanshu Kapania: Importantly, the premium and luxury portfolio now contributes approximately 65% of SIP value, reinforcing the strength of our premiumization journey and improving the quality of our revenue mix. This also puts a fact forward that we did not buy shares at the bottom of the market.

Speaker #4: This also puts forward the fact that we did not buy shares at the bottom of the market. We want them at the top, where brand preference is the hardest to earn and margins are most durable.

Himanshu Kapania: We won it at the top, where brand preference is the hardest to earn and margins are most durable. Fourth, brand salience continues to rise at a remarkable speed. We continue to build on our already number 2 position in unaided top-of-mind recall. With 90% plus brand awareness, Birla Opus is rapidly moving from being a new entrant to becoming mainstream consumer choice. This has been enabled by sustained insight-led and innovative campaigns that are making the brand more visible, more memorable, and more relevant across consumer segments. Our 10% free paint proposition continues to be reinforced through newly launched three hard-hitting advertising films focusing on how Birla Opus still offers higher consumer value in this inflationary paint environment. Separately, regional campaigns such as celebrations of Holi, Ganesh Chaturthi, Onam, et cetera, are helping us convert color moments into demand opportunities.

Speaker #4: Fourth, brand salience continues to rise at a remarkable speed. We continue to build on our already number two position in unaided top-of-mind recall.

Speaker #4: With over 90% brand awareness, Birla Opus is rapidly moving from being a new entrant to becoming a mainstream consumer choice. This has been enabled by sustained, insight-led, and innovative campaigns that are making the brand more visible, more memorable, and more relevant across consumer segments.

Himanshu Kapania: This has been enabled by sustained insight-led and innovative campaigns that are making the brand more visible, more memorable, and more relevant across consumer segments.

Speaker #4: Our 10% free paint proposition continues to be reinforced through newly launched, three hard-hitting advertising films focusing on how Birla Opus still offers higher consumer value in this inflationary paint environment.

Himanshu Kapania: Our 10% free paint proposition continues to be reinforced through newly launched three hard-hitting advertising films focusing on how Birla Opus still offers higher consumer value in this inflationary paint environment. Separately, regional campaigns such as celebrations of Holi, Ganesh Chaturthi, Onam, et cetera, are helping us convert color moments into demand opportunities.

Speaker #4: Separately, regional campaigns such as celebrations of Holi, Ganesh Chaturthi, Onam, etc. are helping us convert movement into demand for these. This combination of national branding and local market activation is strengthening consumer pull and enhancing the distinctiveness of Birla Opus in a highly competitive category.

Himanshu Kapania: This combination of national branding and local market activation is strengthening consumer pull and enhancing the distinctiveness of Birla Opus in a highly competitive category. PaintKraft, our organized painting services platform, is scaling rapidly and is now available across 6,700 plus pin codes on a pan-India basis. It is helping us bring a more professional, transparent, and hassle-free painting experience to consumers across India. To our knowledge, PaintKraft is the only organized painting services platform offering six months and 12 months, no-cost EMI financing, making premium painting solutions more accessible at a time when consumers are increasingly becoming value-conscious. Complementing this is Opus Assurance, our industry-first service warranty program, which strengthens consumer confidence with a trusted end-to-end service promise. Together, PaintKraft and Opus Assurance are helping Birla Opus move beyond product sales into a more complete consumer solutions model. Finally, the fifth strong pillar is the manufacturing excellence.

Speaker #4: Paint Craft, our organized painting services platform, is scaling rapidly and is now available across 6,700-plus paint pools on a pan-India basis. It is helping us bring a more professional, transparent, and hassle-free painting experience to consumers across India.

Speaker #4: To our knowledge, Paint Craft is the only organized painting services platform offering six-month and 12-month no-cost EMI financing, making premium painting solutions more accessible at a time when consumers are increasingly becoming value-conscious.

Himanshu Kapania: To our knowledge, PaintKraft is the only organized painting services platform offering six months and 12 months, no-cost EMI financing, making premium painting solutions more accessible at a time when consumers are increasingly becoming value-conscious.

Speaker #4: Complementing this is Opus Assurance, our industry-first service warranty program, which strengthens consumer confidence with a trusted end-to-end service promise. Together, Paint Craft and Opus Assurance are helping Birla Opus move beyond product sales into a more complete consumer solutions model.

Himanshu Kapania: Complementing this is Opus Assurance, our industry-first service warranty program, which strengthens consumer confidence with a trusted end-to-end service promise. Together, PaintKraft and Opus Assurance are helping Birla Opus move beyond product sales into a more complete consumer solutions model. Finally, the fifth strong pillar is the manufacturing excellence.

Speaker #4: Finally, the fifth strong pillar is manufacturing excellence. Our integrated manufacturing footprint of 1,332 million liters per annum capacity continues to provide a significant competitive advantage.

Himanshu Kapania: Our integrated manufacturing footprint of 1,332 million liters per annum capacity continues to provide a significant competitive advantage. This quarter marked our highest ever production, with capacity utilization continuing to improve. Hello? Can you hear me? You want to check? Hello? Hello? Are you audible? Hello? Hello?

Speaker #4: This quarter marked our highest-ever production, with capacity utilization continuing to grow. Hello, can you hear me? Do you want to check? Hello.

Speaker #2: Hello. Are you audible?

Speaker #1: Hello. Hello.

Speaker #2: Yes, sir, you may speak now.

Operator: Yes, sir. You may speak now.

Himanshu Kapania: We start off with I don't know where I lost you, but I'm going to start on the fifth point. The fifth strong pillar is manufacturing excellence. Our integrated manufacturing footprint of 1,332 million liters per annum capacity continues to provide significant competitive advantage. This quarter marked our highest ever production, with capacity utilization continuing to improve steadily across all six plants. The rapid scale-up of Birla Opus continues to validate our strategy and execution capability. Every quarter, we're strengthening our distribution and contractor ecosystem and enhancing brand preference, expanding our market share. What I want you to take away from this detailed narration is a clear pattern. Revenue is up 64%. Market share has moved up again. Institutional sales grew 85%. The premium and luxury portfolio continues to contribute 65% of value.

Speaker #1: I don't know where I lost you, but I'm going to start from the fifth point. The fifth strong pillar is manufacturing excellence. Our integrated manufacturing footprint of 1,332 million liters per annum capacity continues to provide significant competitive advantage.

Speaker #1: This quarter marked our highest-ever production, with capacity utilization continuing to improve steadily across all six plants. The rapid scale-up of Birla Opus continues to validate our strategy and execution capability.

Himanshu Kapania: The rapid scale-up of Birla Opus continues to validate our strategy and execution capability. Every quarter, we're strengthening our distribution and contractor ecosystem and enhancing brand preference, expanding our market share. What I want you to take away from this detailed narration is a clear pattern. Revenue is up 64%. Market share has moved up again. Institutional sales grew 85%. The premium and luxury portfolio continues to contribute 65% of value.

Speaker #1: Every quarter, we are strengthening our distribution and contractor ecosystem, enhancing brand preference, and expanding our market share. What I want you to take away from this detailed narration is a clear pattern.

Speaker #1: Revenue is up 64%. Market share has moved up again. Institutional sales grew 85%. The premium and luxury portfolio continues to contribute 65% of value.

Speaker #1: And our reach spans over 12,100 towns, 147 depots, and over 1,450 exclusive retail outlets, with 228 products and 90% brand awareness. At the same time, even as the price differential with industry players has narrowed, our competitive intent has not softened.

Himanshu Kapania: Our reach spans over 12,100 towns, 147 airports, 1,450 plus exclusive retail outlets, 228 products, and 90% brand awareness. At the same time, even as the price differential with industry players has narrowed, our competitive advantage has not softened. We are here to compete to build scale and to bring share in a disciplined manner. The message is clear. Market share gains and guided revenue growth remains our priority, supported by widening distribution network, rising brand salience, deeper influencer engagement, and manufacturing footprint built for scale. We took a cost shock on the chin this quarter and continue to invest because we are not optimizing for one quarter. We're building Birla Opus into a INR 10,000 crore brand by FY28, and every leading indicator tells us we are firmly on that path.

Speaker #1: We are there to compete, to build scale, and to win share in a disciplined manner. The message is clear: market share gains and guided revenue growth remain our priorities.

Himanshu Kapania: The message is clear. Market share gains and guided revenue growth remains our priority, supported by widening distribution network, rising brand salience, deeper influencer engagement, and manufacturing footprint built for scale. We took a cost shock on the chin this quarter and continue to invest because we are not optimizing for one quarter. We're building Birla Opus into a INR 10,000 crore brand by FY28, and every leading indicator tells us we are firmly on that path.

Speaker #1: Supported by widening distribution networks, rising brand salience, deeper influencer engagement, and a manufacturing footprint built for scale. We took a cost shock on the chin this quarter and continue to invest.

Speaker #1: Because we are not optimizing for one quarter, we are building Birla Opus into a ₹10,000 crore brand by FY28. And every leading indicator tells us we are firmly on that path.

Speaker #1: Now, let me turn to Birla's pivot—our B2B e-commerce business—and to what I think is the most underappreciated story in this portfolio of Grasim.

Himanshu Kapania: Now let me turn to Birla Pivot, our B2B e-commerce business and to what I think is most underappreciated story in this portfolio of Grasim. Revenue for this quarter grew 75% YoY to INR 2,548 crores. Our annualized run rate continues to trend above 10,000 crores. Let me put that in perspective. This is a business we started from nothing, and it is now operating at a five-figure crore annualized run rate. Very few businesses in India have traveled that distance in such a short time. You will see that revenue grew sequentially on a quarter for the business, and I would rather explain it than have you infer it. Three things happened. We were starting at a high base. The Middle East crisis injected real volatility into commodity markets, and in response, our customers did exactly what disciplined procurement teams do in volatile markets.

Speaker #1: Revenue for this quarter grew 75% year-on-year to ₹2,548 crore. Our annualized run rate continues to trend above ₹10,000 crore. Let me put that in perspective.

Speaker #1: This is a business we started from nothing, and it is now operating at a five-figure crore annualized run rate. Very few businesses in India have traveled that distance in such a short time.

Himanshu Kapania: Very few businesses in India have traveled that distance in such a short time. You will see that revenue grew sequentially on a quarter for the business, and I would rather explain it than have you infer it. Three things happened. We were starting at a high base. The Middle East crisis injected real volatility into commodity markets, and in response, our customers did exactly what disciplined procurement teams do in volatile markets.

Speaker #1: You will see that revenue declined sequentially on a quarter-on-quarter basis. And I would rather explain it than have you infer it. Three things happened.

Speaker #1: We were starting at a high base. The Middle East crisis injected real volatility into commodities markets. In response, our customers did exactly what disciplined procurement teams do in volatile markets.

Himanshu Kapania: They bought in a measured way and optimized their inventory. That is demand timing effect, not demand loss effect. We saw no deterioration in the health of the platform. In fact, transactions kept improving through the quarter. Beyond revenue, what the quarter actually tells us, that the underlying business, the platform, what we have created, is strengthening on every measure we track. Our revenue mix is getting better, not just bigger. We have added high potential SKUs across our three broad categories, building materials, non-ferrous, and chemicals. We continue to deepen within those categories rather than sprawl across new ones. Depth is what builds a defensible platform. Breadth only just builds a catalog. Private labels more than doubled YoY. That is off a low base, and I want to be honest about that.

Speaker #1: They bought in measured ways and optimized their inventory. That is a demand timing effect, not a demand loss effect. We saw no deterioration in the health of the platform.

Speaker #1: In fact, transactions kept improving through the quarter. Beyond revenues, what the quarter actually tells us is that the underlying business platform we have created is strengthening on every measure we track.

Speaker #1: Our revenue mix is getting better, not just bigger. We have added high-potential SKUs across our three broad categories: building materials, non-ferrous, and chemicals.

Himanshu Kapania: Our revenue mix is getting better, not just bigger. We have added high potential SKUs across our three broad categories, building materials, non-ferrous, and chemicals. We continue to deepen within those categories rather than sprawl across new ones. Depth is what builds a defensible platform. Breadth only just builds a catalog. Private labels more than doubled YoY. That is off a low base, and I want to be honest about that.

Speaker #1: And we continue to deepen within those categories rather than sprawl across new ones. That is what builds a defensible platform. Risk only just builds the catalog.

Speaker #1: Private labels more than doubled year-on-year. That is off a low base, and I want to be honest about that. But private label is the margin lever in any marketplace.

Himanshu Kapania: But private label is the margin lever in any marketplace, and the direction of travel matters more right now than the absolute number. Consumer traction remains strong throughout, improving transaction counts, sustained new buyer addition, and robust repeat purchasing from existing buyers. Repeat purchasing is the metric we watch most closely because it is the one a buyer cannot be persuaded into. They come back because the platform works, and the new buyers are well diversified across infrastructure, construction, manufacturing, and industrial segments, spanning both large and mid-sized enterprises. We are not concentrated on any single end market. It is worth stepping back to remember that this business actually does. Indian B2B trade in these categories has historically run on phone calls-

Speaker #1: And the direction of travel matters more right now than the absolute number. Consumer traction remains strong throughout, with improving transaction counts, sustained new buyer addition, and robust repeat purchasing from existing buyers.

Speaker #1: Repeat purchase is the metric we watch more closely, because it is the one a buyer cannot be persuaded into. They come back because the platform works.

Himanshu Kapania: They come back because the platform works, and the new buyers are well diversified across infrastructure, construction, manufacturing, and industrial segments, spanning both large and mid-sized enterprises. We are not concentrated on any single end market. It is worth stepping back to remember that this business actually does. Indian B2B trade in these categories has historically run on phone calls-

Speaker #1: And the new buyers are well diversified across infrastructure, construction, manufacturing, and industrial segments, spanning both large and mid-size enterprises. We are not concentrated on any single end market.

Speaker #1: It is worth stepping back to remember what this business actually does. Indian B2B trade in these categories has historically run on phone calls and relationships.

Operator: I am sorry, sir. Bad network here on your table.

Speaker #2: I'm sorry, sir, but we are not able to hear you.

Speaker #1: Isa, can you reconnect?

Himanshu Kapania: Isha, can you reconnect Himanshu?

Operator: Correct. Please just connect. I will reconnect.

Speaker #2: Correct, correct. Please disconnect. I will reconnect.

Speaker #1: Yes, sure.

Himanshu Kapania: Yeah, sure.

Speaker #2: Ladies and gentlemen, please stay connected while we get the management back on. Ladies and gentlemen, thank you for patiently holding; we have management connected now.

Operator: Ladies and gentlemen, please stay connected while we get the management back on the line. Ladies and gentlemen, thank you for patiently holding. We have management connected now. Over to the management.

Speaker #2: Over to the management.

Speaker #1: Our apologies for the telecom trouble. I don't know where we lost all of you, but I'm going to continue from the paragraph where we talked about private labels.

Himanshu Kapania: Our apologies for the telecom trouble. I do not know where we lost all of you, but I am going to continue from the paragraph where we talked about private labels. Private labels more than doubled year-on-year. That is off a low base, and I want to be honest about that. Private label is the margin lever in any marketplace, and the direction of travel matters more right now than the absolute number. Consumer traction remains strong throughout, improving transaction counts, sustained new buyer addition, and robust repeat purchasing from existing buyers. Repeat purchase is the metric we watch most closely because it is one a buyer cannot be persuaded into. They come back because the platform works, and the new buyers are well diversified across infrastructure, construction, manufacturing, and industrial segments, spanning both large and mid-sized enterprises. We are not concentrated on any single end market.

Speaker #1: Private labels more than doubled year-on-year. That is off a low base, and I want to be honest about that. But private label is the margin lever in any marketplace.

Speaker #1: And the direction of travel matters more right now than the absolute number. Consumer traction remains strong throughout, improving transaction counts, sustained new buyer addition, and robust repeat purchasing from existing buyers.

Himanshu Kapania: Consumer traction remains strong throughout, improving transaction counts, sustained new buyer addition, and robust repeat purchasing from existing buyers. Repeat purchase is the metric we watch most closely because it is one a buyer cannot be persuaded into. They come back because the platform works, and the new buyers are well diversified across infrastructure, construction, manufacturing, and industrial segments, spanning both large and mid-sized enterprises. We are not concentrated on any single end market.

Speaker #1: Repeat purchase is a metric we watch most closely because it is one a buyer cannot be persuaded into. They come back because the platform works.

Speaker #1: It is worth stepping back to remember what this business actually does. Indian B2B trade in these categories has historically run on phone calls, relationships, and paper—opaque pricing, slow payments, and uncertain deliveries.

Himanshu Kapania: It is worth stepping back to remember what this business actually does. Indian B2B trade in these categories has historically run on a phone call, relationship, and paper, opaque pricing, slow payments, and uncertain deliveries. Replacing that with an integrated digital platform. For a buyer, that means the ability to source quality products, compare prices transparently, access working capital, track deliveries in real time, and manage the whole procurement process in one place. For a seller, it means growing sales, improving operational efficiency, accelerating cash flows, and reaching markets they would never have serviced on their own. Both sides get something they genuinely could not get before. That is why this platform is compounding. Every satisfied buyer brings sellers, every good seller brings buyers.

Speaker #1: Replacing that with an integrated digital platform—for a buyer, that means the ability to source quality products, compare prices transparently, access working capital, track deliveries in real time, and manage the whole procurement process in one place.

Speaker #1: For a seller, it means growing sales, improving operational efficiency, accelerating cash flows, and reaching markets they would never have surfaced on their own. Both sides get something.

Himanshu Kapania: For a seller, it means growing sales, improving operational efficiency, accelerating cash flows, and reaching markets they would never have serviced on their own. Both sides get something they genuinely could not get before. That is why this platform is compounding. Every satisfied buyer brings sellers, every good seller brings buyers.

Speaker #1: They genuinely could not get before. That is why this platform is compounding—every satisfied buyer brings sellers, and every good seller brings buyers. Underneath the marketplace, we build a robust digital financing ecosystem, expanding working capital and credit solutions for both buyers and sellers through strategic partnerships with leading financial institutions.

Himanshu Kapania: Underneath the marketplace, we built a robust digital financing ecosystem, expanding working capital and credit solutions for both buyers and sellers through strategic partnerships with leading financial institutions. This is the piece I would encourage you to weigh most heavily. In B2B trade, credit is the real constraint, not catalog. By solving for working capital alongside the transaction, we make ourselves difficult to disintermediate. Talking about profitability in this business, our position is unchanged and our confidence is high. We are not chasing breakeven by shrinking, we are reaching it by scaling into a cost base we have already built. Birla Pivot remains on track to achieve EBITDA breakeven by exit of FY27. I hand over the call to our CFO, Mr. Hemant Kadel, for his remarks on company's financial performance and remaining businesses. Over to you, Hemant.

Speaker #1: This is the piece I would encourage you to weigh most heavily. In B2B trade, credit is the real constraint, not catalog. By solving for working capital alongside the transaction, we make ourselves difficult to disintermediate.

Speaker #1: Talking about profitability in this business, our position is unchanged, and my confidence is high. We are not chasing break-even by shrinking—we are reaching it by scaling into a cost base.

Himanshu Kapania: Talking about profitability in this business, our position is unchanged and our confidence is high. We are not chasing breakeven by shrinking, we are reaching it by scaling into a cost base we have already built. Birla Pivot remains on track to achieve EBITDA breakeven by exit of FY27. I hand over the call to our CFO, Mr. Hemant Kadel, for his remarks on company's financial performance and remaining businesses. Over to you, Hemant.

Speaker #1: We have already built. Will our pivot remain on track to achieve a better break-even by the exit of FY27? Now, I hand over the call to our CFO, Mr. Hemant, for his remarks on the company's financial performance and remaining businesses.

Speaker #1: Over to you, Hemant.

Speaker #3: Thank you, Mr. Himanshu. And good evening, everyone on the call. Let me turn now to Solaristic Fibers, and I want to start with why this business matters more today than it ever has.

Hemant Kumar Kadel: Thank you, Mr. Himanshu, and good evening everyone on the call. Let me turn now to cellulosic fibers. I want to start with why this business matters more today than it has ever. Cotton is running into hard limits. Land is finite, water is scarce, and yields have plateaued. That constraint has opened up what we call the cellulosic gap. A structural shortfall the world has to fill with something, and cellulosic fiber is the natural answer. It is biodegradable, it is environmentally friendly, and it is one of the most sustainable fiber in the basket. On the demand side, our Liva brand is pulling the entire textile value chain towards cellulosic. On the supply side, our lyocell expansion is progressing as per plans.

Hemant Kadel: Thank you, Mr. Himanshu, and good evening everyone on the call. Let me turn now to cellulosic fibers. I want to start with why this business matters more today than it has ever. Cotton is running into hard limits. Land is finite, water is scarce, and yields have plateaued. That constraint has opened up what we call the cellulosic gap.

Speaker #3: Cotton is running into hard limits: land is finite, water is scarce, and yields have plateaued. That constraint has opened up what we call the cellulosic gap—a structural shortfall the world has to fill with something.

Hemant Kadel: A structural shortfall the world has to fill with something, and cellulosic fiber is the natural answer. It is biodegradable, it is environmentally friendly, and it is one of the most sustainable fiber in the basket. On the demand side, our Liva brand is pulling the entire textile value chain towards cellulosic. On the supply side, our lyocell expansion is progressing as per plans.

Speaker #3: And Cellulosic Fiber is the natural answer. It is biodegradable. It is environmentally friendly. And it is one of the most sustainable fiber in the basket.

Speaker #3: On the demand side, our LEVA brand is pulling the entire textile value chain towards cellulosic. On the supply side, our lyocell expansion is progressing as per plans.

Speaker #3: The earlier announced ₹1,350 crore phase one project of 55,000 tons per annum is completing its detailed engineering, and civil work is progressing as per plan.

Hemant Kumar Kadel: The earlier announced INR 1,350 crore Phase 1 project of 55,000 per ton per annum is completing its detailed engineering and civil work is progressing as per plan. The recently approved INR 3,094 crore Phase 2 project of 110,000 TPA is moving through environmental clearance. The operating environment. China remains the swing factor for this industry, and the signals there are constructive. Operating rates and inventory days tell us that the supply side stayed disciplined through the quarter. Talking about financial performance, VSF sales volumes were down 4% year-on-year. Two reasons for volume degrowth: planned maintenance and reduced production and subdued downstream demand. Specialty fiber moved from 21% of the sales mix to 27%, led by exports.

Hemant Kadel: The earlier announced INR 1,350 crore Phase 1 project of 55,000 per ton per annum is completing its detailed engineering and civil work is progressing as per plan. The recently approved INR 3,094 crore Phase 2 project of 110,000 TPA is moving through environmental clearance. The operating environment. China remains the swing factor for this industry, and the signals there are constructive.

Speaker #3: The recently approved Rs. 3,094 crore Phase 2 project of 110,000 TPA is moving through environmental clearance. Now, the operating environment—China remains the swing sector for this industry.

Speaker #3: And the signals there are constructive. Operating rates and inventory days tell us that the supply side stayed disciplined through the quarter. Talking about financial performance, CSF sales volumes were down 4% year-on-year, mainly due to two reasons for the volume degrowth.

Hemant Kadel: Operating rates and inventory days tell us that the supply side stayed disciplined through the quarter. Talking about financial performance, VSF sales volumes were down 4% year-on-year. Two reasons for volume degrowth: planned maintenance and reduced production and subdued downstream demand. Specialty fiber moved from 21% of the sales mix to 27%, led by exports.

Speaker #3: Plant maintenance and reduced production. And subdued downstream demand. Specialty fiber moved from 21% to of the sales mix to 27% led by exports. Revenue grew 12% year on year to rupees 4,530 crore despite lower volumes driven by strong global prices rupee depreciation and favorable product mix.

Hemant Kumar Kadel: Revenue grew 12% year-on-year to INR 4,530 crore despite lower volumes driven by strong global prices, rupee depreciation, and favorable product mix. EBITDA roughly doubled. Some of that is a low base, but a meaningful part is the specialty sales doing its work. Let me move to chemicals. The first thing to understand about this business is that it is not one business. It is three, and they are reinforced each other. Caustic soda prices in Southeast Asia exited the quarter at $483 a ton, up from $468 we saw a year ago. Our ECU realization followed the same path, up 6% year-on-year to INR 37,955 per ton. Volumes were softer and that is largely due to plant maintenance effect.

Hemant Kadel: Revenue grew 12% year-on-year to INR 4,530 crore despite lower volumes driven by strong global prices, rupee depreciation, and favorable product mix. EBITDA roughly doubled. Some of that is a low base, but a meaningful part is the specialty sales doing its work. Let me move to chemicals. The first thing to understand about this business is that it is not one business. It is three, and they are reinforced each other.

Speaker #3: EBITDA roughly doubled. Some of that is a low base but a meaningful part is the specialty share doing its work. Let me move to chemicals.

Speaker #3: The first thing to understand about this business is that it is not one business. It is three and they are reinforced each other. Plastic soda prices in Southeast Asia exited the quarter at dollar 483 a ton up from dollar 468 we saw year ago.

Hemant Kadel: Caustic soda prices in Southeast Asia exited the quarter at $483 a ton, up from $468 we saw a year ago. Our ECU realization followed the same path, up 6% year-on-year to INR 37,955 per ton. Volumes were softer and that is largely due to plant maintenance effect.

Speaker #3: Our Eco Realization followed the same path up 6% year on year to rupees 37,000, 955 per ton. Volumes were softer and that is largely due to plant maintenance effect.

Speaker #3: Chemical segment revenue of rupees crore grew by 10% year on year driven by improved realization in caustic chlorine derivatives and specialty chemical. With revenue mix within revenue mix caustic soda came down to 49% while specialty chemical rose to 30%.

Hemant Kumar Kadel: Chemical segment revenue of INR 2,640 crore grew by 10% year-on-year, driven by improved realization in caustic chlorine derivatives and specialty chemical. Within revenue mix, caustic soda came down to 49%, while specialty chemical rose to 30%. Higher share of specialty chemical was aided by price increase that was passed through due to higher input costs. EBITDA of INR 491 crore, up 16%, growing faster than revenue, driven by all around performance across businesses. The story here is straightforward: a leadership position in the base business, funding a deliberate march downstream. As CPVC got recently commissioned and ECH commissioning happening in Q2 of FY27, chlorine integration is expected to reach 68% by exit of the current financial year. Let me turn to building materials. When paints and B2B are already covered by Mr. Himanshu, let me cover cement.

Hemant Kadel: Chemical segment revenue of INR 2,640 crore grew by 10% year-on-year, driven by improved realization in caustic chlorine derivatives and specialty chemical. Within revenue mix, caustic soda came down to 49%, while specialty chemical rose to 30%. Higher share of specialty chemical was aided by price increase that was passed through due to higher input costs. EBITDA of INR 491 crore, up 16%, growing faster than revenue, driven by all around performance across businesses.

Speaker #3: Higher share of specialty chemical was aided by price increase that was passed through due to higher input costs. EBITDA of rupees 491 crore up 16% growing faster than revenue driven by all-round performance across businesses.

Speaker #3: So the story here is straightforward. A leadership position in the base business is funding a deliberate march downstream. As CPVC got recently commissioned, and ECH commissioning is happening in Quarter 2 of FY27, chlorine integration is expected to reach 68% by the exit of the current financial year.

Hemant Kadel: The story here is straightforward: a leadership position in the base business, funding a deliberate march downstream. As CPVC got recently commissioned and ECH commissioning happening in Q2 of FY27, chlorine integration is expected to reach 68% by exit of the current financial year. Let me turn to building materials. When paints and B2B are already covered by Mr. Himanshu, let me cover cement.

Speaker #3: Let me turn to building materials. When paints and B2B are already covered by Mr. Imanchu, let me cover cement. Starting with capacity. Because in this business, scale is million tons of gray cement capacity in the quarter taking total gray cement capacity across India and overseas to 205.5 million tons.

Hemant Kumar Kadel: Starting with capacity, because in this business scale is strategy. We added 8.7 million tons of gray cement capacity in the quarter, taking total gray cement capacity across India and overseas to 205.5 million tons. Consolidated sales volume grew 12% year-on-year to 41.31 million tons. Double digit volume growth at this scale is no small thing. The result flows through cleanly to consolidated EBITDA, which is also up 12% to INR 5,146 crore, driven by volume growth and by lower logistics and power cost. On energy, green power mix has risen to 45.6%, up 23% year-on-year, with total renewable power capacity now 1.4 gigawatts. On the retail front, UltraTech Building Solutions outlets continue to grow, with total number of outlets now at 5,802, up nearly 1,000 stores compared to last year. UltraTech gives healthy cash flow to us in the form of dividends.

Hemant Kadel: Starting with capacity, because in this business scale is strategy. We added 8.7 million tons of gray cement capacity in the quarter, taking total gray cement capacity across India and overseas to 205.5 million tons. Consolidated sales volume grew 12% year-on-year to 41.31 million tons. Double digit volume growth at this scale is no small thing. The result flows through cleanly to consolidated EBITDA, which is also up 12% to INR 5,146 crore, driven by volume growth and by lower logistics and power cost.

Speaker #3: Consolidated sales volume grew 12% year-on-year to 41.31 million tons. Double-digit volume growth at this scale is not a small thing. The result flows through cleanly to consolidated EBITDA, which is also up 12% to ₹5,146 crore, driven by volume growth and by lower logistics and power cost.

Speaker #3: On energy, green power mix has risen to 45.6% up 23% year on year. With total renewable power capacity now 1.4 gigawatts. On the retail front, AltaTech building solutions outlets continue to grow with total number of outlets now at 5,802 up nearly 1,000 stores compared to last year.

Hemant Kadel: On energy, green power mix has risen to 45.6%, up 23% year-on-year, with total renewable power capacity now 1.4 gigawatts. On the retail front, UltraTech Building Solutions outlets continue to grow, with total number of outlets now at 5,802, up nearly 1,000 stores compared to last year. UltraTech gives healthy cash flow to us in the form of dividends.

Speaker #3: AltaTech gives healthy cash flow to us in the form of dividends. Aditi Bidla Capital delivered a strong start to FY27. The performance reflects the strength of its diversified financial services platform.

Hemant Kumar Kadel: Aditya Birla Capital delivered a strong start to FY2027. The performance reflects the strength of its diversified financial services platform, with lending, insurance, and asset management businesses all contributing to growth. The overall lending portfolio grew by 32% to nearly INR 220,000 crore, while housing finance crossed the INR 50,000 crore milestone, growing 50% year-on-year. On the insurance side, the business continues to build scale across both life and health, while the asset management business benefited from strong AUM growth and improving market share. Importantly, the company also strengthened its growth platform by raising INR 4,000 crore of equity capital, including participation from International Finance Corporation, positioning the business well to accelerate growth while maintaining a strong balance sheet and robust asset quality. Grasim invested INR 2,880 crore at INR 356 per share, maintaining its stake in Aditya Birla Capital on a fully diluted basis.

Hemant Kadel: Aditya Birla Capital delivered a strong start to FY2027. The performance reflects the strength of its diversified financial services platform, with lending, insurance, and asset management businesses all contributing to growth. The overall lending portfolio grew by 32% to nearly INR 220,000 crore, while housing finance crossed the INR 50,000 crore milestone, growing 50% year-on-year.

Speaker #3: With lending, insurance, and asset management businesses all contributing to growth. The overall lending portfolio grew by 32% to nearly 2,20,000 crores. While housing finance crossed the 50,000 rupee 50,000 crore milestone.

Speaker #3: Growing 50% year on year. On the insurance side, the business continues to build scale across both life and health. Meanwhile, the asset management business benefited from strong AUM growth and improving market share.

Hemant Kadel: On the insurance side, the business continues to build scale across both life and health, while the asset management business benefited from strong AUM growth and improving market share.

Speaker #3: Importantly, the company also strengthened its growth platform by raising rupees 4,000 crore of equity capital including participation from international finance corporation. Positioning the business well to accelerate growth while maintaining a strong balance sheet and robust asset quality.

Hemant Kadel: Importantly, the company also strengthened its growth platform by raising INR 4,000 crore of equity capital, including participation from International Finance Corporation, positioning the business well to accelerate growth while maintaining a strong balance sheet and robust asset quality. Grasim invested INR 2,880 crore at INR 356 per share, maintaining its stake in Aditya Birla Capital on a fully diluted basis.

Speaker #3: Grasim invested ₹2,880 crore at ₹356 per share, maintaining its stake in Aditya Birla Capital on a fully diluted basis. Our smaller businesses are contributing more than their size suggests.

Hemant Kumar Kadel: Our smaller businesses are contributing more than their size suggests. Renewable business revenues grew 59% year-on-year, textile business grew 26%, and insulator business continues to serve the power sector in expansion. These businesses sit directly on the same structural themes as the rest of our portfolio: the energy transition, aspirational consumption, and infrastructure build out. Coming to capital expenditure, the standalone plan for FY2027 is expected at INR 3,157 crore. Nearly 45% of this CapEx is dedicated to growth CapEx. The total spend in Q1 stood at INR 375 crore, which is nearly 12% of the budget. On balance sheet, as profitability improved, consolidated net debt to TTM EBITDA declined to 1.45 times as on 30 June 2026, compared to 1.62 times in the same period last year. On standalone level, net debt increased to INR 9,899 crore.

Hemant Kadel: Our smaller businesses are contributing more than their size suggests. Renewable business revenues grew 59% year-on-year, textile business grew 26%, and insulator business continues to serve the power sector in expansion. These businesses sit directly on the same structural themes as the rest of our portfolio: the energy transition, aspirational consumption, and infrastructure build out.

Speaker #3: Renewable business revenues grew 59% year on year textile business grew 26% and insulator business continues to serve the power sector in expansion. These businesses sit directly on the same structural themes as the rest of our portfolio.

Speaker #3: The energy transition, aspirational consumption, and infrastructure build out. Coming to capital expenditure, the standalone plan for FY27 is expected at rupees 3,157 crore. Nearly 45% of this capex is dedicated to growth capex.

Hemant Kadel: Coming to capital expenditure, the standalone plan for FY2027 is expected at INR 3,157 crore. Nearly 45% of this CapEx is dedicated to growth CapEx. The total spend in Q1 stood at INR 375 crore, which is nearly 12% of the budget. On balance sheet, as profitability improved, consolidated net debt to TTM EBITDA declined to 1.45 times as on 30 June 2026, compared to 1.62 times in the same period last year. On standalone level, net debt increased to INR 9,899 crore.

Speaker #3: The total spend in quarter one stood at rupees 375 crore which is nearly 12% of the budget. On balance sheet, as profitability improved consolidated net debt to PTM EBITDA declined to 1.45 times as on 30th June 2026 compared to 1.62 times in the same period last year.

Speaker #3: On a standalone level, net debt increased to ₹9,899 crore. This is largely due to the timing difference between the recent investment made on June 26 in Aditya Birla Capital and the dividend to be received from UltraTech in August 26.

Hemant Kumar Kadel: This is largely due to timing difference between recent investment made in June 2026 in Aditya Birla Capital and dividend to be received from UltraTech in August 2026. Now we open the floor for Q&A. Thank you. I request operator to please connect for Q&A.

Hemant Kadel: This is largely due to timing difference between recent investment made in June 2026 in Aditya Birla Capital and dividend to be received from UltraTech in August 2026. Now we open the floor for Q&A. Thank you. I request operator to please connect for Q&A.

Speaker #3: Now, we open the floor for Q&A. Thank you. I request the operator to please connect for the Q&A session.

Speaker #2: Thank you very much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone.

Operator: Thank you very much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking the question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Naveen Sahadevan from ICICI Securities. Please go ahead.

Speaker #2: If you wish to remove yourself from the question queue, you may press 'star' and 'two.' Participants are requested to use handsets while asking questions.

Speaker #2: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Naveen Sahadev from ICIC Securities.

Speaker #2: Please go ahead.

Speaker #3: Yeah, good evening, and congratulations on a good set of numbers. I'll start with two questions. One, in Paint, of course, explain its journey so far.

Naveen Sahadevan: Yeah. Good evening and congratulations on good set of numbers. I will start with two questions. One in paints, of course, splendid journey so far. But sequential growth, because year-on-year I will not compare, given we are in the ramp-up phase. Sequential growth of 17% is appearing broadly at par, I would say, to most of the paint companies that have reported performance. Of course, there is a reduction in losses, too. My question was: How should we look at the journey incrementally? Because this quarter, like I said, is broadly at par on a QoQ basis. Will it be fair to assume that growth is more matured and we will focus on breaking even for a year? Or if required, we will continue to keep the push and first achieve the revenue target? How should one look at it?

Navin Sahadeo: Yeah. Good evening and congratulations on good set of numbers. I will start with two questions. One in paints, of course, splendid journey so far. But sequential growth, because year-on-year I will not compare, given we are in the ramp-up phase. Sequential growth of 17% is appearing broadly at par, I would say, to most of the paint companies that have reported performance.

Speaker #3: But sequential growth, because year on year I'll not compare given we are in the ramp-up phase, sequential growth of 17% is appearing broadly at par, I would say, to most of the paint companies that have reported performance.

Speaker #3: Of course, there is a reduction in losses too. So, my question was: how should we look at the journey incrementally? Because this quarter, like I said, is broadly at par on a QoQ basis.

Navin Sahadeo: Of course, there is a reduction in losses, too. My question was: How should we look at the journey incrementally? Because this quarter, like I said, is broadly at par on a QoQ basis. Will it be fair to assume that growth is more matured and we will focus on breaking even for a year? Or if required, we will continue to keep the push and first achieve the revenue target? How should one look at it?

Speaker #3: So is it fair to assume that will it be fair to assume that growth is more matured and we'll focus on breaking even earlier?

Speaker #3: Or if required, we'll continue to keep the push and first achieve the revenue target? How should one look at it? Thank you so much, Naveen.

Himanshu Kapania: Thank you so much, Naveen. You are absolutely right. The sequential growth compared to listed companies is at a similar level as the listed companies. But you have to see what is special about Q1, which is not a normal quarter. This quarter, most paint companies have increased their prices by double digit. So it gave opportunity to the channel partners to stock up. The high revenues reported by the industry has a component of consumer sales and a component of extra channel stocking, which will even out over a period of time. Being a new operator, we do not have the power to be able to get extra stocking in the channel, which the old operator, based on their past spends, are capable to get more stocking done. This is the only factor which has dramatically changed in this quarter.

Speaker #3: So you're absolutely right. The sequential growth in compared to listed companies is at a similar level at the listed companies. But you have to see what is special about quarter one which is not a normal quarter.

Speaker #3: This quarter most paint companies have increased the prices by double digit. So it gave opportunity to the channel partners to stock up. The revenues this quarter reported high revenues reported by the industry has a component of consumer sale and a component of extra channel stocking.

Himanshu Kapania: The high revenues reported by the industry has a component of consumer sales and a component of extra channel stocking, which will even out over a period of time. Being a new operator, we do not have the power to be able to get extra stocking in the channel, which the old operator, based on their past spends, are capable to get more stocking done. This is the only factor which has dramatically changed in this quarter.

Speaker #3: Which will even out over a period of time. Being a new operator, we don't have the power to be able to get extra stocking in the channel, which the old operator based on their past trends have capable to get more stocking done.

Speaker #3: This is the only factor which has dramatically changed. In this quarter. So it's better to see revenues on a longer term basis rather than on a specific quarter basis.

Himanshu Kapania: It is better to see revenues on a longer term basis rather than on a specific quarter basis. So nothing changes. Our commentary has been very explicit. We continue with a resolve to be able to deliver the INR 10,000 crore revenue.

Speaker #3: So nothing changes. I have commentary has been very explicit. We continue to with a resolve to be able to deliver the 10,000 crore revenue.

Speaker #1: Thank you. My second question, then, was about the AB renewals business because we tend to talk a little less about it.

Naveen Sahadevan: Thank you. Sir, my second question then was about the AB Renewables business, because we tend to talk a little less about it. You did mention Pivot is the underappreciated business so far, but I think also maybe AB Renewables needs some more slides in the presentation. Because of the recent transaction that we did, the broader question here is if we can get a complete outlook of this particular segment, in the sense if the entire 9.3 gigawatt of the capacity target will be up and running or available for the full year 2029, if everything is booked under PPAs, what would be the potential debt levels? What is the infusion Grasim may require to keep it a subsidiary at 51% or more? If you could just help us understand the AB Renewables perspective, I think it will really benefit everybody. Thank you.

Navin Sahadeo: Thank you. Sir, my second question then was about the AB Renewables business, because we tend to talk a little less about it. You did mention Pivot is the underappreciated business so far, but I think also maybe AB Renewables needs some more slides in the presentation.

Speaker #1: You did mention pivot is the underappreciated business so far but I think also maybe AB renewals needs some more slides in the presentation. So because of the recent transaction that we did.

Navin Sahadeo: Because of the recent transaction that we did, the broader question here is if we can get a complete outlook of this particular segment, in the sense if the entire 9.3 gigawatt of the capacity target will be up and running or available for the full year 2029, if everything is booked under PPAs, what would be the potential debt levels? What is the infusion Grasim may require to keep it a subsidiary at 51% or more? If you could just help us understand the AB Renewables perspective, I think it will really benefit everybody. Thank you.

Speaker #1: So broader questions here is is like you know if you can get a complete outlook of this particular segment in the sense if the entire 9.3 gigawatt of the capacity target will be up and running or available for the full year 29.

Speaker #1: If it's everything is booked under you know PPAs what would be the potential debt levels what is the infusion grassing may require to keep it a subsidiary at 51% or more.

Speaker #1: If you could just help us understand the AB renewal perspective I think it will really benefit everybody. Thank you.

Himanshu Kapania: We would like to organize a separate session for all the analysts who are interested in Aditya Birla Renewables. We have a separate management team of Aditya Birla Renewables, and it is best that they will give you the complete guidance. While it sits, Grasim a major investor, but it is best answered with them. I will, for the time being, ditch this question and definitely for Naveen and also for other like-minded people who want little more details on Aditya Birla Renewables, organize a separate session.

Speaker #3: So, we would like to organize a separate session for all the analysts who are interested in AB renewals. We have a separate management team for AB renewals.

Speaker #3: And it is best that they will give you the complete guidance. While it sits in grassing a major investor but it is best answered with them.

Speaker #3: I will for the timing ditch this question and definitely for Naveen and also for other like-minded people who want little more details on AB renewals organize a separate session.

Speaker #1: Right. Thank you sir.

Naveen Sahadevan: Right. Thank you, sir.

Navin Sahadeo: Right. Thank you, sir.

Speaker #2: Thank you. Next question is from the line of Prateek Kumar from Jasuris. Please go ahead.

Operator: Thank you. Next question is from the line of Prateek Kumar from Jefferies. Please go ahead.

Speaker #1: Yeah. Thank you. Thank you sir. Congrats for fantastic results and thank you for sharing the segment table information on new businesses. With in paints particularly the bidder losses also nearly halving versus past few quarters.

Prateek Kumar: Yeah. Thank you. Thank you, sir. Congrats for fantastic results, and thank you for sharing the segment level information on new businesses. In paints, particularly the EBITDA losses also nearly halving versus past few quarters. Could you also revisit timelines, targets on profitability, whether there has been any change in the expectation of turning profitable on a full year basis in FY28?

Speaker #1: Would you also like to revisit the timeline targets on profitability, whether there has been any change in the expectation of turning profitable on a full-year basis in FY28?

Speaker #3: So our consistent stand has been that once we reach 10,000 crore we will become profitable. At this point of time we're not changing that stand.

Himanshu Kapania: Our consistent stand has been that once we reach INR 10,000 crore, we will become profitable. At this point in time, we are not changing that stand.

Speaker #1: Sure. And also again on the renewable value you talked about you'll do a separate meeting there. How including the equity contribution towards decent acquisition and how do you see capital employed expected to evolve in 27, 28 versus 1200 crore as of FY26?

Prateek Kumar: Sure. On the renewables, while you talked about you will do a separate meeting there, including the equity contribution towards recent acquisition, and how do you see capital employed expected to evolve in 2027 and 2028 versus INR 1,200 crore as of FY26 end? These numbers we will need for modeling purpose also in terms of cash flow.

Speaker #1: Because this number is what we need for modeling purposes, also in terms of cash flow.

Speaker #3: So coming to capital employed and capital allocation of Grasim, we are already working on it. In the current quarter, we have invested in our financial services business.

Hemant Kumar Kadel: Coming to capital employed, capital allocation of Grasim, in the current quarter, we have invested in our financial services business. We are right now undertaking expansion project of our VSF business and cash outflow for the current financial year on account of CapEx is INR 3,157 crore.

Hemant Kadel: Coming to capital employed, capital allocation of Grasim, in the current quarter, we have invested in our financial services business. We are right now undertaking expansion project of our VSF business and cash outflow for the current financial year on account of CapEx is INR 3,157 crore.

Speaker #3: We are right now undertaking expansion project of our CSO business and cash cash outflow for the current financial year on account of capex is 3,157 crore.

Speaker #3: But I think your question was pertaining to renewals. Grasim's contribution will be a small number and will not have a material impact as far as Grasim is concerned from its own cash flow.

Himanshu Kapania: I think your question was pertaining to renewables. Grasim contribution will be a small number and will not have a material impact as far as Grasim is concerned from its own cash flow. That is what we can reconfirm to you. You do not need to-

Speaker #3: That is what we can reconfirm to you. So you don't need to much cash flow requirement from grassing to order ABSRF. On the renewal business.

Prateek Kumar: I understand.

Himanshu Kapania: cash flow requirement from Grasim on the ABFRL, on the renewal business. Exact number we will share with you outside.

Speaker #3: The exact number we will share with you separately.

Prateek Kumar: Sure. Thanks for clarification. Lastly, could you also discuss the royalty payable to Birla Holdings, particularly in context of similar arrangement being raised by peers such as Hindalco?

Speaker #1: Ashok that's thanks for clarification. Lastly could you also discuss the royalty payable to build a holdings particularly in context of similar arrangement being raised by peers such as Indapco?

Speaker #3: What is the question?

Himanshu Kapania: What is the question?

Speaker #1: So, royalty payable—so, the peer entities talked about 0.25% of sales. Is this similarly applicable from FY27 onwards for Grasim also?

Prateek Kumar: Royalty payable. The peer entity you talked about, 0.25% of sales. Is this similar applicable from FY27 onwards for Grasim also?

Speaker #3: That's right. Yes, it is applicable for Grasim also. So it will be 0.25%—it will be 0.25% of standalone revenue starting from June. I want to take a minute to be able to give you the logic why this is important from an overall perspective, as the Aditya Birla Group, the parent brand to us, is the most valuable asset and a source of competitive advantage. It's an intangible platform that systematically builds trust, reduces friction, and enhances the long-term growth potential of our group companies.

Himanshu Kapania: That is right.

Hemant Kumar Kadel: Yeah, it is applicable for Grasim also. It will be 0.25% of standalone revenue starting from June.

Hemant Kadel: Yeah, it is applicable for Grasim also. It will be 0.25% of standalone revenue starting from June.

Himanshu Kapania: I want to take a minute to be able to give you the logic why this is important from an overall perspective. As the Aditya Birla Group, the parent brand to us is the most valuable asset and a source of competitive advantage. It is an intangible platform that systematically builds trust and reduces friction and enhances long-term growth potential of our group companies. Because of this, I think their current model, where we were earlier, we are transitioning from purely family-driven stewardship to structured governance model, which is consistent with global best practices for founder and family brands of comparable scale.

Speaker #3: So because of this I think the current model where we were earlier we are transitioning from purely family driven stewardship to structured governance model which is consistent with global best practices for founder and family brands of comparable scale.

Himanshu Kapania: Because of this, I think their current model, where we were earlier, we are transitioning from purely family-driven stewardship to structured governance model, which is consistent with global best practices for founder and family brands of comparable scale.

Speaker #3: We were very happy that for a long period of time, the group—the family—was not charging us for this brand, and it is appropriate that this is now getting charged. It is at a very reasonable level of 0.25% of revenue, with an upper cap that is in place.

Himanshu Kapania: We were very happy that for a long period of time, the family was not charging us for this brand. It is an appropriate time that this is getting charged, and it is at a very reasonable level of 0.25% of revenue with an upper cap that has been built in. This becomes applicable now from 1 June.

Speaker #3: And this becomes applicable now from 1st of June.

Speaker #1: So the upper cap is 225 crores 225 crores for yourself and undertake also because it's your subsidiary.

Hemant Kumar Kadel: June.

Hemant Kadel: June.

Prateek Kumar: The upper cap is INR 225 crores, so you also help an UltraTech also because it is your subsidiary.

Speaker #3: No, no, Grasim will be paying on standalone revenues. So, if you take standalone revenues, the impact will be around ₹100 crore.

Himanshu Kapania: No.

Hemant Kumar Kadel: Grasim will be paying on standalone revenues, so if you take standalone revenues, impact will be around INR 100 crores.

Hemant Kadel: Grasim will be paying on standalone revenues, so if you take standalone revenues, impact will be around INR 100 crores.

Speaker #1: Sure. Thank you. I'll get back to that.

Prateek Kumar: Sure. Thank you. I will get back to that.

Himanshu Kapania: Just to clarify, all our subsidies will pay the brand value under their line of business, whether it is Aditya Birla Renewables, whether it is Aditya Birla Capital, whether it is UltraTech. All will be paying on their own. Grasim will pay for its standalone direct business. I hope we clarified.

Speaker #3: Just to clarify, all our subsidiaries will pay as a brand value under their line of business, whether it is AB Renewals, whether it is Other Capital, or whether it is UltraTech.

Speaker #3: All will be paying on their own. Grasim will pay for its standalone direct business. I hope this clarifies.

Speaker #1: Sure. Thank you, sir. These are my questions.

Prateek Kumar: Sure. Thank you, sir. These are my questions.

Speaker #2: Thank you. Next question is from the line of Praneet from Kotek Security. Please go ahead. Praneet, your line is unmuted. Praneet, can you hear us?

Operator: Thank you. Next question is from the line of Praneeth from Kotak Securities. Please go ahead. Praneeth, your line is unmuted. Praneeth, can you hear us?

Jay Doshi: Hello, can you hear me?

Speaker #4: Hello can you hear me?

Speaker #2: Yes you're audible.

Operator: Yes, you are audible.

Speaker #4: Okay I think there seems to be some this is Jayadoshi from Kotek. Hi thanks for the opportunity. Just one question with reference to so as per my understanding you know some companies in paint industry have a very strong seasonally strong March quarter depending on how their schemes are in terms of absolute sales.

Jay Doshi: Okay. This is Jay Doshi from Kotak. Thanks for the opportunity. Just one question with reference to, as per my understanding, some companies in paint industry have a very strong seasonally strong March quarter depending on how their schemes are in terms of absolute sales. While some companies tend to focus more on the June quarter. So when I look at salience of March quarter versus June quarter, it will vary from company to company. In context of that, what is it for Grasim? Because if I look at the last year, generally you have a very solid March quarter, and then June quarter absolute sales is not meaningfully higher, and then it scales up again in December and March quarter. So should QoQ metric be a relevant metric from March to June to compare market share for Grasim Birla Opus versus rest of the industry?

Speaker #4: There are some companies that tend to focus more on the June quarter, right? So, when I look at salients of the March quarter versus the June quarter, it will vary from company to company.

Speaker #4: And so in in context of that you know what is it for grassing because if I look at the last year generally you have a very solid March quarter and then June quarter absolute sales is not meaningfully higher and then it scales up again in December and March quarter.

Jay Doshi: Because if I look at the last year, generally you have a very solid March quarter, and then June quarter absolute sales is not meaningfully higher, and then it scales up again in December and March quarter. So should QoQ metric be a relevant metric from March to June to compare market share for Grasim Birla Opus versus rest of the industry?

Speaker #4: So should POQ metric be a relevant metric from March to June to compare market share for the you know grassing opus versus rest of the industry and that was one question.

Jay Doshi: That was one question. Second question is, you started on a YoY basis. When I look, you started with a very strong 64% growth. So does this give you confidence that at full year level you should be able to at least do 50% or more on a YoY basis full year FY2027 over FY2026? I know your guidance is INR 10,000 crore, but it would help if you could give us some broad indication of FY2027 as well. Thank you for the additional disclosures.

Speaker #4: And second question is, you started on a year-on-year basis. When I look, you know, you started with a very strong 64% growth. So, does this give you confidence that at a full-year level, you should be able to, you know, at least do 50% or more on a year-on-year basis — full year FY27 over FY28?

Speaker #4: I understand your FY28 sorry FY27 over FY26. I know your guidance is 10,000 crore but to help if you could give us some you know broad indication of FY27 as well.

Speaker #4: And thank you for the additional disclosures.

Speaker #3: Thank you, Jay. Yes, on a year-over-year basis, we are guiding over 50% revenue growth, which addresses the second part of the question. And for us, as we are in a high-growth model with a low base, a specific quarter is not so critical.

Himanshu Kapania: Thank you, Jay. Yes, on a Y-on-Y basis, we are guiding over 50% revenue, which is the second part of your question. For us, as we are in a high growth model with a low base, a specific quarter is not so critical. But obviously our model encourages dealers to not only participate during the quarter, but also have schemes that close during the year. So naturally, there is some additional sale that takes place at the end of the year which builds up. As quarter on quarter revenues build up, annual sales will definitely grow. While I would not say a particular quarter is going to be better than other quarter, the model that we built is a traditional model that we are doing in all businesses. We would build programs which will encourage dealers to participate on a monthly and a quarterly basis.

Speaker #3: But obviously, our model is to encourage this dealer to not only participate during the quarter, but also have schemes that close during the year.

Speaker #3: So which will naturally there is some additional sales that takes place at the end of the year which is which builds up. So as we as quarter on quarter revenues build up annual sales will definitely grow.

Himanshu Kapania: So naturally, there is some additional sale that takes place at the end of the year which builds up. As quarter on quarter revenues build up, annual sales will definitely grow. While I would not say a particular quarter is going to be better than other quarter, the model that we built is a traditional model that we are doing in all businesses. We would build programs which will encourage dealers to participate on a monthly and a quarterly basis.

Speaker #3: So so while I would not say a particular quarter is going to be better than a other quarter but the model that we build is a traditional model that we are doing in all businesses we would build programs which will encourage dealer to participate on a monthly and a quarterly basis but the aggregation of all this revenue during the all the quarters will also get him some bonuses to to at the year end.

Himanshu Kapania: But the aggregation of all this revenue during all the quarters will also get in some bonuses due at the year-end. So our loyalty program is being designed for annual programs as well. I hope this will give you a sense of how our revenue stacks up.

Speaker #3: So, our loyalty program has been designed for annual programs as well. I hope this will give you a sense of how our revenues are stacked up.

Speaker #4: Sure. Thank you so much. That's helpful.

Jay Doshi: Sure. Thank you so much. That is helpful.

Speaker #2: Thank you. Next question is from the line of Rahul Gupta from Morgan Stanley. Please go ahead.

Operator: Thank you. Next question is from the line of Rahul Gupta from Morgan Stanley. Please go ahead.

Rahul Gupta: Yeah. Hi. Thank you for taking my question. Two questions. Just when you say royalty payments of 0.25% of revenues, is there a cap there like we see for Hindalco at INR 225 crores, or there is no cap on that? That is my first question.

Speaker #1: Yeah. Hi. Thank you for taking my question. Two questions. Just when I say IT payments of 0.25% of revenues is there a cap there like we see for Hindalco at 225 crores or there is no cap on that.

Speaker #1: That's my first question.

Hemant Kumar Kadel: Yes, Rahul, there is a cap, but in our case, 0.25% will be a smaller amount. The cap is INR 225 crore, but as of today, we are quite far from that.

Hemant Kadel: Yes, Rahul, there is a cap, but in our case, 0.25% will be a smaller amount. The cap is INR 225 crore, but as of today, we are quite far from that.

Speaker #3: Yes, Rahul, there is a cap, but in our case, 0.25% will be a smaller amount. The cap is ₹225 crore, but we will not, as on today, we are quite far from that.

Rahul Gupta: Yeah. So in that case, would it be lower or the higher amount of the-

Speaker #1: Yeah. So, in that case, would it be a lower or a higher amount of the...

Hemant Kumar Kadel: Taking an estimated amount of INR 50,000 crore revenue for Grasim, 0.25% will work out to INR 125 crore, and the cap is INR 225 crore.

Hemant Kadel: Taking an estimated amount of INR 50,000 crore revenue for Grasim, 0.25% will work out to INR 125 crore, and the cap is INR 225 crore.

Speaker #3: Thank you. Taking an taking an estimated amount of 50,000 crore revenue for grassing 0.25 will work out to 125 crore and the cap is 225 crore.

Rahul Gupta: Got it. That's helpful. My second question is on paints. When you talked about around 9% quarter-on-quarter price hikes reflected into Q1, was there any benefit from change in discounting or incentives as well during the quarter, or volumes grew by around 8% quarter-on-quarter? Also, when you talk about pricing benefits flowing into Q2, what kind of rollbacks have you seen in the quarter-to-date, and how are volumes trending at the same time? Thank you.

Speaker #1: Got it, got it. That's helpful. My second question is on paints. Now, when you talked about price hikes being reflected in the first quarter, was there any benefit from a change in discounting or incentives as well during the quarter? Volumes grew by around 8% quarter-on-quarter. Also, when you talk about pricing benefits flowing into the second quarter, what kind of rollbacks have you seen in the quarter-to-date, and how are volumes trending at the same time?

Speaker #1: Thank you.

Himanshu Kapania: I think it's a little complex question that you're trying to address. Let's go back from the basics. The raw material cost has increased on a COGS basis anywhere between 20% to 25%, and as a percentage of revenue between 10% to 14%, depending on the month. We were carrying older inventory, and the older inventory has now been phased out, and most of our is now at the newer inventory for the raw material. The price increase was not taken in a single shot. It was taken at multiple levels during the quarter, and some of it will flow into the next quarter. As I mentioned at the start of the question and answers, the Q1 had a combination of consumer sales and stocking up of dealers because they saw the benefit to take additional volume before the price increase took place, which is for the industry.

Speaker #3: I think there's a little it's a little complex question that you are trying to address. Let me let's go back from the basics the raw material cost has has increased on a COGS basis anywhere between 20 to 25% and as a percentage of revenue between 10 to 14%.

Speaker #3: Depending on the month. But we were carrying older inventory and the older inventory as now being leased out and most of our is now at the newer inventory for the raw materials.

Himanshu Kapania: The price increase was not taken in a single shot. It was taken at multiple levels during the quarter, and some of it will flow into the next quarter. As I mentioned at the start of the question and answers, the Q1 had a combination of consumer sales and stocking up of dealers because they saw the benefit to take additional volume before the price increase took place, which is for the industry.

Speaker #3: The price increase was not taken in a single shot it was taken at multiple levels. During the quarter and some of it will flow into the next quarter.

Speaker #3: The as I mentioned at the start of the question answers that the quarter one had a combination of consumer sales and stocking up of dealers because they saw the benefit to take additional volume before the price increase took place which is for the industry.

Himanshu Kapania: Q2 is unlikely to have that because the dealers are bringing down their inventory going forward. To be able to make proper estimates of volume, which is all consumer driven, is going to be a little difficult between a Q1 and Q2. I think by Q2, it will all even out, and most likely, the market stock will come back to its normal level. Also Q2 typically is a weaker quarter because of monsoons. Once the season sets in, we are expecting good volume growth to return back. While these are our estimates, I can't give anything beyond this at this point in time.

Speaker #3: Quarter two is unlikely to have that because the dealers are bringing down their inventory going forward. So to be able to make proper estimates of volume which is all consumer driven is going to be a little difficult between a quarter one and quarter two but I think by quarter two it will all even out and most likely the market stock will come back to its normal level.

Himanshu Kapania: I think by Q2, it will all even out, and most likely, the market stock will come back to its normal level. Also Q2 typically is a weaker quarter because of monsoons. Once the season sets in, we are expecting good volume growth to return back. While these are our estimates, I can't give anything beyond this at this point in time.

Speaker #3: So, also, quarter two typically is a weaker quarter because of monsoons, and once the season sets in, we are expecting good volume growth to return.

Speaker #3: So while these are our our estimates I can't give anything beyond this at this point of time.

Rahul Gupta: Got it. No, this is very helpful. Just coming back to the first quarter, just trying to understand, given you had in the previous quarter highlighted that you were looking to remove your 10% higher volumes in some of the products like primers. I'm just trying to understand that when 17% revenue growth came in quarter-on-quarter, was that also on back of removing some of these incentives or outside of price hikes, everything else was more or not?

Speaker #1: Got it. Got it. No, this is very helpful. Just coming back to the first quarter just trying to understand given you had in the previous quarter highlighted that you were looking to remove your 10% higher volumes in some of the products like primers I'm just trying to understand that when 70% revenue growth came in quarter on quarter was that also on back of removing some of these incentives or outside of price hikes everything else was volume.

Himanshu Kapania: The 10% removal of primers took place in the month of January, and most of which was accounted for in the Q4 itself. There is very little impact in Q1, I would say. I hope that's clear.

Speaker #3: So, 10% removal of primers took place in the month of January, and most of this was accounted for in quarter four itself. So, there is very little impact in quarter one.

Speaker #3: I would I hope that's clear.

Rahul Gupta: Got it. Thank you so much. Wish you all the best.

Speaker #1: Got it. Thank you so much for all the best.

Operator: Thank you. Next question is from the line of Raashi from Citigroup. Please go ahead.

Speaker #2: Thank you. Next question is from the line of Rashi from Citigroup. Please go ahead. Thank you. Just a couple of questions. On the renewable side you had mentioned that the impact on cash flow because of the contribution will not be significant possible to quantify or give a range.

[Analyst] (Citigroup): Thank you. Just a couple of questions. On the renewables side, you mentioned that the impact on cash flow because of the contribution will not be significant. Possible to quantify or give a range?

Himanshu Kapania: Less than INR 1,000 crores.

Speaker #3: Less than 1,000 crores.

[Analyst] (Citigroup): Okay. That's one. Second, on the chemical side, the kind of resilience that we've seen in this quarter, how do we think about Q2 and going forward?

Speaker #2: Okay, that's one. Second, on the chemical side, the kind of resilience that we have seen in this quarter, how should we think about Q2 and going forward?

Himanshu Kapania: Sorry, your question is the result sustainable in the second quarter, right?

Speaker #3: Yeah. Sorry. Your question is is the result sustainable in the second quarter right.

[Analyst] (Citigroup): Yeah, and going forward.

Speaker #2: Yeah. I'm going forward.

Himanshu Kapania: Well, it's really difficult to predict the market these days. As you know, the Gulf war is creating all kind of strange situations. For example, there are three refineries, large alumina refineries in the Gulf not operating, which has substantially reduced alumina demand. You also know that feedstock prices for petrochemicals, which are raw materials which are used by our chlorine customers. They're literally changing overnight. There are shipping shortages, there are container shortages. So we are following a very simple approach, and that is, we have almost a daily pricing mechanism based on the commodity prices of the day. We try not to take a very large position on either raw material inventory or finished good inventory, so we keep our risk under control.

Speaker #3: So look it's it's really difficult to predict the market these days. As you know the Gulf War is creating all kind of strange situations.

Speaker #3: For example there are three refineries large alumina refineries in the Gulf not operating. Which has substantially reduced alumina demand. You also know that feedstock prices for petrochemicals which are you know raw materials which are used by our floating customers they are literally changing overnight.

Himanshu Kapania: They're literally changing overnight. There are shipping shortages, there are container shortages. So we are following a very simple approach, and that is, we have almost a daily pricing mechanism based on the commodity prices of the day. We try not to take a very large position on either raw material inventory or finished good inventory, so we keep our risk under control.

Speaker #3: There are shipping shortages. There are container shortages. So we are following a very simple approach and that is you know we have almost a daily pricing mechanism based on the commodity prices of the day.

Speaker #3: We try not to take a very large position on either raw material inventory or finished goods inventory, so we keep a very strict control.

Himanshu Kapania: We cater to what is genuine demand of the customers, and we ensure that our pricing hygiene remains consistent with the commodity price of it. To be honest, beyond that, it is really difficult to predict the market these days.

Speaker #3: We cater to what is the genuine demand of the customers, and we ensure that our pricing hygiene remains consistent with the commodity price of it.

Speaker #3: To be honest beyond that it is really difficult to to predict the market these days. Having said that second quarter we will of course be selling material from stocks which we purchased in the first quarter which were more expensive.

Jayant V Dhobley: Having said that, the Q2, we will of course be selling material from stocks which we purchased in the Q1, which were more expensive. So there will be pressure on our margins. But it is a volatile situation.

Speaker #3: So there will be pressure on our markets. But you know it's a it's a volatile situation.

[Analyst] (Citigroup): Understood. On VSF, the sequential increase that we have seen in the EBITDA. Volumes have declined. What has been the move in the pricing domestically as well as costs sequentially?

Speaker #2: Understood. And just on VSF you know the sequential increase that we have seen in the EBITDA so volumes have declined is you know what has been the boom in the pricing domestically as well as cost and cost sequentially.

Vadiraj Kulkarni: One, in terms of costs, we have seen a surge in some of the input prices, say of sulfur and partially caustic. Volumes were down because of two reasons. One, we took a planned maintenance in one of our largest plants in India. There is a certain preventive maintenance schedule that is ongoing. Two, there is also a slight drop in the downstream demand in India. But thankfully, the demand outside India was good, so we were able to export, increase exports, of course, at a margin realization slightly lower than what we do domestically. The prices went up because of two reasons. One is international demand was good. International prices went up, especially in China. Cotton prices went up, polyester prices went up, largely because of the geopolitical environment and dollar getting stronger versus rupee.

Speaker #1: So, one, in terms of cost, we have seen a surge in some of the input prices, say of sulfur and partially caustic. Volumes were down because of two reasons.

Speaker #1: One we took a planned maintenance in one of our largest plants in India. There is a certain preventive maintenance schedule that is ongoing. Two there is also a slight drop in the downstream demand in India but thankfully the demand in outside India was good so we were able to export increase exports.

Vadiraj Kulkarni: But thankfully, the demand outside India was good, so we were able to export, increase exports, of course, at a margin realization slightly lower than what we do domestically. The prices went up because of two reasons. One is international demand was good. International prices went up, especially in China. Cotton prices went up, polyester prices went up, largely because of the geopolitical environment and dollar getting stronger versus rupee.

Speaker #1: Of course at a margin realization slightly lower than what we do domestically. So the prices went up because of two reasons. One is international demand was good.

Speaker #1: International prices went up, especially in China. Cotton prices went up, and polyester prices also increased, largely because of the geopolitical environment and the dollar getting stronger versus the rupee.

Vadiraj Kulkarni: We were able to pass on significant increase in our input prices to the marketplace in terms of pricing. We are holding on to that position as of now, unless any external event dramatically changes the situation with respect to demand, dollar, euro, and rupee exchange price, and what happens in China.

Speaker #1: So, we were able to pass on a significant increase in our input prices to the marketplace in terms of pricing. We are holding on to that position as of now, unless any external event dramatically changes the situation with respect to demand.

Speaker #1: Dollar, euro, and rupee exchange rates, and what happens in China.

[Analyst] (Citigroup): Sequentially, what is the domestic realization increase?

Speaker #2: Thank you so much. Sequentially what is the domestic realization increase?

Vadiraj Kulkarni: Domestic realization increase has. We don't exactly share the prices or realization numbers. But I think if you see the earning presentation we have shared, the increase is similar to what you see internationally.

Speaker #1: Domestic realization increase has—I mean, we don't exactly share the prices, price, or realization numbers. But I think if you see the earnings presentation we have shared, the increase is similar to what you see internationally.

[Analyst] (Citigroup): Okay. Thank you.

Speaker #2: Okay, thank you. Next question is from the line of Neerav Jimudia from Anvil Wealth. Please go ahead.

Operator: Thank you. Next question is from the line of Nirav Jimodia from Anvil Wealth. Please go ahead.

Nirav Jimodia: Yes, sir. Good evening, and thanks for the opportunity. Sir, two questions. One on the chemical side. Sir, if you can just help us understand, out of our total volumes of close to around 284,000 tons, how much was the contribution from the flake? If you can just help us understand historically what used to be the difference between the lye and the flake prices and because of all this geopolitical situation, whether they have expanded recently.

Nirav Jimudia: Yes, sir. Good evening, and thanks for the opportunity. Sir, two questions. One on the chemical side. Sir, if you can just help us understand, out of our total volumes of close to around 284,000 tons, how much was the contribution from the flake? If you can just help us understand historically what used to be the difference between the lye and the flake prices and because of all this geopolitical situation, whether they have expanded recently.

Speaker #3: Yes sir. Good evening and thanks for the opportunity. So two questions. So one on the chemical side sir if you can just help us understand like out of our total volumes of close to around 284,000 tons how much was the contribution from the flicker and if you can just help us understand historically what used to be the difference between the lye and the flake prices and because of all this geopolitical situation whether they have expanded recently.

Jayant V Dhobley: We normally don't disclose the ratio between our lye and flake production. Unfortunately, I will take a pass on that answer. What I can only say is that our approach is to maximize our electrochemical unit margins. Based on that, we choose the right product mix that we want to go to the market by making sure that all our contract customers, and we have several contract customers whom we have given volume commitments to, those are always on. Other than that, we will margin maximize our products.

Speaker #1: So we normally don't disclose the ratio between our lye and flake production. So unfortunately I will take a pass on that answer. What I can only say is that our approach is to maximize our electrochemical unit margins.

Speaker #1: And then, based on that, we choose the right product mix that we want to take to the market, while making sure that all our contract customers—and we have several contract customers to whom we have given volume commitments—those are always on.

Speaker #1: But other than that, you know, we will margin maximize our product mix.

Nirav Jimodia: Correct.

Nirav Jimudia: Correct.

Jayant V Dhobley: We do not have everything.

Speaker #3: Correct. Yeah. So hypothetically, that's the reason that, because of the newer capacities of caustic which are coming up here in India, there could be some correction in the prices of caustic.

Nirav Jimodia: Yeah.

Nirav Jimudia: Yeah.

Jayant V Dhobley: Yes, sir.

Nirav Jimodia: So hypothetically, let's presume that because of the newer capacities of caustic which are coming up here in India, and let's say there could be some correction in the prices of caustic. So what internally we are doing in order to reduce the impact of any fall in the prices of caustic? If you can just list one or two parameters in terms of potential benefit from the measures, that would be very helpful.

Nirav Jimudia: So hypothetically, let's presume that because of the newer capacities of caustic which are coming up here in India, and let's say there could be some correction in the prices of caustic. So what internally we are doing in order to reduce the impact of any fall in the prices of caustic? If you can just list one or two parameters in terms of potential benefit from the measures, that would be very helpful.

Speaker #3: So, what are we doing internally in order to reduce the impact of any fall in the prices of caustic? If you could just list one or two parameters in terms of potential benefit from the measures, that would be very helpful.

Jayant V Dhobley: Yes. So there are two things. First of all, whatever new capacity is coming into India in caustic, which is PVC linked, is relatively small compared to the traded volume of caustic internationally. Our thesis has always been, and it continues to remain, that it will be international market prices that will drive domestic price parity. The second point, of course, is whatever capacity comes in for PVC will substitute PVC imports, which means there will be pressure on operating rates of PVC players outside the country. So we don't see any net caustic capacity addition to the global markets because of the extra India PVC capacity. Because the PVC operating rate will be driven by PVC. Now, what we mainly are doing is chlorine integration. That is the main source of value generation for us. And you have seen that we have already inaugurated our CPVC plant.

Speaker #1: Yes, so there are two things, right. First of all, whatever new capacity is coming into India in caustic, which is PVC-related, is relatively small compared to the traded volume of caustic internationally.

Speaker #1: So our thesis has always been, and it continues to remain, that it will be international market prices that will drive domestic price parity. The second point, of course, is whatever capacity comes in for PVC will substitute PVC imports, which means there will be pressure on operating rates of, you know, PVC players outside the country.

Jayant V Dhobley: The second point, of course, is whatever capacity comes in for PVC will substitute PVC imports, which means there will be pressure on operating rates of PVC players outside the country. So we don't see any net caustic capacity addition to the global markets because of the extra India PVC capacity. Because the PVC operating rate will be driven by PVC. Now, what we mainly are doing is chlorine integration. That is the main source of value generation for us. And you have seen that we have already inaugurated our CPVC plant.

Speaker #1: So we don't see any net caustic capacity addition to the global markets because of because of the extra India PVC capacity because the PVC operating rate will be driven by PVC.

Speaker #1: Now what we mainly are doing is chlorine integration right. That is the main source of value generation for us. And you have seen that we have already inaugurated our CPVC plant.

Jayant V Dhobley: In fact, we made our first commercial shipments. We made a stock exchange declaration also yesterday. We are in the process of commissioning our ECH plant. So we will continue with our effort on chlorine integration. We are not unduly pessimistic about long-term caustic prices. We continue to believe that the domestic market will trade at import parity.

Speaker #1: In fact we made our first commercial shipments. We made a stock exchange declaration also yesterday. We are in the process of commission commissioning our ECH plant.

Speaker #1: So we will continue with our effort on chlorine integration. We are not unduly you know pessimistic about long term caustic prices. We continue to believe that domestic parity.

Nirav Jimodia: Perfect. So second question on the epoxy side. What we see is we have dropped close to around 18% to 20% top-line growth, both on a sequential and on a YoY basis. So if you can help us understand, was this purely led through the realization passed through the cost price increases, or there was a volume growth also this quarter which has driven these top-line numbers?

Nirav Jimudia: Perfect. So second question on the epoxy side. What we see is we have dropped close to around 18% to 20% top-line growth, both on a sequential and on a YoY basis. So if you can help us understand, was this purely led through the realization passed through the cost price increases, or there was a volume growth also this quarter which has driven these top-line numbers?

Speaker #3: Perfect. So the second question on the epoxy side. Like I what we see is like we have close to around 18 to 20 percent top line growth both on a sequential and on a YOY basis.

Speaker #3: So if you can help us understand was this purely led through the realization passed through through the cost price increases or there was a volume growth also this quarter which has drived this top line numbers.

Jayant V Dhobley: I think the price realization has been the bigger part of that. We have seen the raw material prices go up, which has forced us to increase prices. Of course, there has been some volume effect, but it is mostly prices.

Speaker #1: I think the price realization has been the bigger part of that. We have seen the raw material prices go up, which has forced us to increase prices.

Speaker #1: Of course there has been some volume effect but it is mostly price realization.

Nirav Jimodia: How do you see the markets in terms of epoxy, predominantly from the export market, like in Europe and second USA, and also because some of the players have recently announced the capacity for epoxy here also in India. So how do you see the market shaping up over the next 2, 3 years in terms of refilling up the capacities which we have recently expanded on? Thank you so much.

Nirav Jimudia: How do you see the markets in terms of epoxy, predominantly from the export market, like in Europe and second USA, and also because some of the players have recently announced the capacity for epoxy here also in India. So how do you see the market shaping up over the next 2, 3 years in terms of refilling up the capacities which we have recently expanded on? Thank you so much.

Speaker #3: And how do you see the markets in terms of epoxy predominantly from the export market like a Europe and second USA and also because some of the players have recently announced the capacity for epoxy here also in India.

Speaker #3: So, how do you see the market shaping up over the next two to three years in terms of us filling up the capacities which we have recently expanded on?

Speaker #3: Thank you so much.

Jayant V Dhobley: We are already operating at decent utilization rates. I believe that our utilization rates are higher than the industry standard in India right now. So that is not something we are worried about. About the extra capacities that are announced or will be announced, ultimately what will drive the epoxy business is two things: what is demand, and what is your value proposition to the market. Just having capacity does not increase the size of the end market. We believe that we have the broadest epoxy portfolio in the business, we have the best customer service, we have the best IP, and we will continue to maintain our leadership share, and we will grow with the market.

Speaker #1: So we are we are already operating at decent utilization rates. I believe that our utilization rates are higher than the industry standard in India right now.

Speaker #1: So that is not something we are worried about. About the extra capacities that are announced or will be announced ultimately what will drive the epoxy business is two things.

Speaker #1: What is demand and what is your value proposition to the market. You know just having capacity does not increase the size of the end market right.

Jayant V Dhobley: Just having capacity does not increase the size of the end market. We believe that we have the broadest epoxy portfolio in the business, we have the best customer service, we have the best IP, and we will continue to maintain our leadership share, and we will grow with the market.

Speaker #1: We believe that we have the broadest epoxy portfolio in the business. We have the best customer service and we have the best IP. And we will continue to maintain our leadership share and we will grow with the market.

Jayant V Dhobley: Now, as regard exports, of course, there are all kind of other factors when it comes to exports, whether that is the uncertainty of the tariff situation in the US, whether it is about the demand slowdown in Europe, and nowadays, more and more availability of shipping and logistics. Our primary growth market remains the domestic market. We believe we are the market leader. We believe we have the best portfolio to provide complete solutions to the industry. We provide great technical service. We have dedicated application development resources, and we believe that this market share depends upon your ability to provide solutions to customers and not driven by capacity.

Speaker #1: Now as regard exports of course there are all kind of other factors when it comes to exports. You know whether that is the uncertainty of the tariff situation in the US whether it is about the demand slowdown in Europe and and and nowadays more and more availability of shipping and logistics but our primary growth market remains the the domestic market.

Jayant V Dhobley: We believe we are the market leader. We believe we have the best portfolio to provide complete solutions to the industry. We provide great technical service. We have dedicated application development resources, and we believe that this market share depends upon your ability to provide solutions to customers and not driven by capacity.

Speaker #1: We are, we believe, we are the market leader. We believe we have the best portfolio to provide complete solutions to the industry. We provide great technical service.

Speaker #1: We have dedicated you know application development resources. And we we believe that this market share depends upon your ability to provide solutions to customers and not driven by capacity.

Nirav Jimodia: Perfect, sir. Thank you so much, and wish you all the best.

Nirav Jimudia: Perfect, sir. Thank you so much, and wish you all the best.

Speaker #3: Perfect, sir. Thank you so much, and wish you all the best.

Operator: Thank you. Next question is from the line of Siddharth Mehrotra from Kotak Securities. Please go ahead.

Speaker #2: Thank you. Next question is from the line of Siddharth Mehrotra from Kotak Securities. Please go ahead.

Siddharth Mehrotra: Thanks for the opportunity, sir. Sir, just wanted to check, given that there is a slight mismatch with respect to the UltraTech dividends coming in. Do we see this as the peak net debt for us, or do we see net debt going to higher levels for us?

Speaker #1: Thanks for the opportunity sir. So just pointed to check given that there's a slight mismatch with respect to the Ultra Tech dividends coming in.

Speaker #1: So, do we see this as the peak net debt for us, or do we see net debt going to higher levels for us?

Hemant Kumar Kadel: We will be maintaining our net debt below 2.

Hemant Kadel: We will be maintaining our net debt below 2.

Speaker #3: We will be maintaining our net debt below 2.

Siddharth Mehrotra: Net debt below 2 for the entire year.

Speaker #1: Net debt to a bit up below two for the entire year. Is that correct?

Hemant Kumar Kadel: Yeah.

Hemant Kadel: Yeah.

Hemant Kumar Kadel: Is that correct?

Hemant Kadel: Is that correct?

Hemant Kumar Kadel: Yeah.

Hemant Kadel: Yeah.

Speaker #3: Yeah.

Siddharth Mehrotra: Okay, sir. In that respect, could you just throw some light on perhaps how will we structure our equity contribution to the renewables transaction?

Speaker #1: Okay sir. So in that respect could you just throw some light on perhaps how will we structure our equity contribution to the renewables transaction?

Hemant Kumar Kadel: At renewable, we will be investing not more than INR 1,000 crore in the current financial year.

Hemant Kadel: At renewable, we will be investing not more than INR 1,000 crore in the current financial year.

Speaker #3: Renewable we will be investing not more than 1000 crore in the current financial year.

Siddharth Mehrotra: Okay, sir. What will be our stake in the renewables venture once this transaction is consummated, obviously?

Speaker #1: Okay, sir. Our stake in the renewables venture, once this transaction is consummated, obviously?

Hemant Kumar Kadel: Yeah, the transaction will get consummated somewhere in December, and GIP will be participating. The equity portion for this transaction will be contributed by Aditya Birla Group Grasim, as well as GIP. We will have a separate call on this, where we can clarify more in detail. I think we should wait for some more time till the transaction is consummated. From Grasim, contribution in the current financial year will be less than INR 1,000 crore.

Hemant Kadel: Yeah, the transaction will get consummated somewhere in December, and GIP will be participating. The equity portion for this transaction will be contributed by Aditya Birla Group Grasim, as well as GIP. We will have a separate call on this, where we can clarify more in detail. I think we should wait for some more time till the transaction is consummated. From Grasim, contribution in the current financial year will be less than INR 1,000 crore.

Speaker #3: Yeah. The transaction will get consummated somewhere in December. And GIP will be participating the equity portion for this transaction will be contributed by Aditi Vela Group Grassim as well as GIP. And what will be on this so where we can clarify more in detail and I think we should wait for some more time till the transaction is consummated.

Speaker #3: But from Grassim contribution in the current financial year will be less than 1000 crore. Second sir given our commentary especially on the operating rates which are at fairly high levels do we think these margins are sustainable say for example over the next five six quarters or is it too early to sort of predict that given the volatile commodity situation?

Siddharth Mehrotra: Understood, sir. That is clear. Secondly, sir, on the VSF margins. Sir, given our commentary, especially on the operating rates, which are at fairly high levels, do you think these margins are sustainable, say, for example, over the next five, six quarters? Or is it too early to sort of predict that given the volatile commodity situation?

Himanshu Kapania: I wish I had the answer. Nevertheless, you know that this industry has been cyclical, but we have a very strong position in India. Irrespective of the global operating rates, our operating rates are very high. They are almost close to 100%, except if you take maintenance shutdowns, which also have to be taken. So I think it will all depend on how the input prices play and how the demand grows. Quarter to quarter, there will be some kind of variation. But in India, we are positioned to hold a very strong position. Our customer connect, our business development, our Liva brand, all that put together, we have a very strong position. As we discussed earlier, the cotton is limited availability, so that will be substituted by our current VSF or the new lyocell fiber that we are increasing the capacity.

Speaker #1: I wish I had the answer. But nevertheless you know that this industry has been cyclical but we are very very strong position in India.

Speaker #1: Irrespective of the global operating rates our operating rates are very very high. You know they are almost close to 100 except if you take maintenance shutdowns which also have to be taken.

Speaker #1: So I think it will all depend on the how the input prices play and how the demand grows quarter to quarter there will be some kind of variation.

Speaker #1: But in India we are positioned to hold a very very you know strong position. Our customer connect our business development our Niva brand all that put together we have a very strong position and as we discussed earlier the cotton is limited availability so that will be substituted by our current VSF or the new live cell you know fiber that we are increasing our capacity in.

Himanshu Kapania: Our customer connect, our business development, our Liva brand, all that put together, we have a very strong position. As we discussed earlier, the cotton is limited availability, so that will be substituted by our current VSF or the new lyocell fiber that we are increasing the capacity.

Jayant V Dhobley: It is good now, but of course, as an analyst, you would have studied these trends for a very long period of time. We are getting bigger, we are getting stronger. But of course, there will be some headwinds in some quarters.

Speaker #1: So, it's good now but of course, you know, as an analyst, you would have studied these trends for a very, very long period of time.

Speaker #1: We're getting bigger we're getting stronger but of course there will be some headwinds in some quarters.

Siddharth Mehrotra: Understood, sir. Thanks for this, sir. Thank you.

Speaker #3: Understood sir. Thanks for this sir. Thank you.

Operator: Thank you. Next question is from the line of Naveen Sahadevan from ICICI Securities. Please go ahead.

Speaker #2: Thank you. Next question is from the line of Naveen Sahadya from ICICI Securities. Please go ahead.

Naveen Sahadevan: Yeah. Thank you. Thank you for the opportunity. Two questions. One is, I was reading across that Lenzing, which is a global major in VSF, is phasing out some capacities of the specialty fiber and also, I think exiting Indonesia market, which is sizable. I think either they are looking to sell or shut it down. If you have any idea of that and what could be possible potential impact of that, is it likely to be positive, is my one question. I have one more question, with request answer for this.

Navin Sahadeo: Yeah. Thank you. Thank you for the opportunity. Two questions. One is, I was reading across that Lenzing, which is a global major in VSF, is phasing out some capacities of the specialty fiber and also, I think exiting Indonesia market, which is sizable. I think either they are looking to sell or shut it down. If you have any idea of that and what could be possible potential impact of that, is it likely to be positive, is my one question. I have one more question, with request answer for this.

Speaker #1: Yeah, thank you. Thank you for the opportunity. Two questions. One is, I was reading that Lenzing, which is a global major in VSF, is phasing out some capacities of specialty fiber and also, I think, exiting the Indonesia market, which is sizable.

Speaker #1: I think either they're looking to sell or shut it down. So if you have any idea of that and what could be possible potential impact of that is it likely to be positive is my one question.

Speaker #1: I have one more but the request answer for this.

Jayant V Dhobley: Yeah, one, of course, we do know what is in the public domain with respect to what some of the international competition announces.

Speaker #3: Yeah. One of course we do know what is in the public domain with respect to what some of the international competition announces. There is a small see some of these capacities that our competition is shutting are very small high cost capacities in our assessment.

Vadiraj Kulkarni: There is a small. Some of these capacities that our competition is shutting are very small, high-cost capacities in our assessment, and in high-cost countries. It is very difficult to make fiber at competitive prices costs in those countries. That is a certain call that they have taken. But in our case, we want to strengthen our portfolio of specialty products, both for the domestic market and exports. As far as what is happening in Indonesia is concerned, yes, that affects the global supply demand for the conventional viscose fiber. Any capacity drops is, for the competitors, always good news. To that extent, when the equation of supply-demand stabilizes globally, if we need to export out of Grasim, then it will be useful because the prices will be at higher level. That is our current reading and assessment.

Speaker #3: And in high cost countries so it's very difficult to make fiber at competitive prices cost in those countries. So that's a certain call that they have taken but in our case we want to strengthen our portfolio of specialty you know products both for the domestic market and exports.

Vadiraj Kulkarni: As far as what is happening in Indonesia is concerned, yes, that affects the global supply demand for the conventional viscose fiber. Any capacity drops is, for the competitors, always good news. To that extent, when the equation of supply-demand stabilizes globally, if we need to export out of Grasim, then it will be useful because the prices will be at higher level. That is our current reading and assessment.

Speaker #3: As far as what's happening in Indonesia is concerned, yes, that affects the global supply and demand for the conventional viscose fiber. And any capacity drops is, for the competitors, always good news.

Speaker #3: So to that extent you know we would be able to when the equation of supply demand stabilizes globally if we need to export out of Grassim then it will be useful because the prices would be at higher level.

Speaker #3: That's our current reading and assessment.

Naveen Sahadevan: Understood. Thank you. My second question was about Birla Pivot. Two parts to this question is first, having reached a sizable scale, like almost INR 10,000 crore, when is the breakeven? Earlier breakeven guidance was on achieving a billion-dollar sort of a revenue. Is the breakeven anytime soon is one part of the question. The second was, how much of our sales are directed or from the UltraTech Building Solutions stores, which is a fairly large chain of our subsidiary? Thank you.

Navin Sahadeo: Understood. Thank you. My second question was about Birla Pivot. Two parts to this question is first, having reached a sizable scale, like almost INR 10,000 crore, when is the breakeven? Earlier breakeven guidance was on achieving a billion-dollar sort of a revenue. Is the breakeven anytime soon is one part of the question. The second was, how much of our sales are directed or from the UltraTech Building Solutions stores, which is a fairly large chain of our subsidiary? Thank you.

Speaker #1: Understood. Thank you. My second question was about Pivot. So to pass to this question is first having reached a sizable scale like almost 10000 crore when is the break even because earlier guidance to this was break even guidance was on achieving a billion dollar sort of a revenue.

Speaker #1: So is it is the is the break even anytime soon is one part of the question. The second was how much of our sales are directed or from the UBS stores which is a fairly large chain of our subsidiary.

Speaker #1: Thank you.

Sandeep Komaravelly: Thank you, Naval, for the question. As mentioned in the opening comments, our current estimate is that we will exit this year at EBITDA breakeven. I know you mentioned we had earlier given the guidance that at USD 1 billion or INR 8,500 crore, we will be breakeven, but that timeline got shifted slightly. We have front-loaded our investments in people and technology, and all of that has obviously helped us in achieving a higher revenue run rate. If you look at it, we have grown 75% year-on-year, and our estimate of when we will actually hit the INR 10,000 crore run rate has also fast-tracked because of the investment that we made. We are on a good path, and we are fairly confident that we will exit this year at EBITDA breakeven. That is your first question. On the second question, we look at three segments fundamentally for our business.

Speaker #3: Thank you Naveen for the question. As mentioned in the opening comments our current estimate is that we'll exit this year at EBITDA break even.

Speaker #3: I know you mentioned we had earlier given the guidance that at $1 billion, or ₹8,500 crores, we will be break-even, but you know that timeline got shifted slightly.

Sandeep Komaravelly: We have front-loaded our investments in people and technology, and all of that has obviously helped us in achieving a higher revenue run rate. If you look at it, we have grown 75% year-on-year, and our estimate of when we will actually hit the INR 10,000 crore run rate has also fast-tracked because of the investment that we made. We are on a good path, and we are fairly confident that we will exit this year at EBITDA breakeven. That is your first question. On the second question, we look at three segments fundamentally for our business.

Speaker #3: We have furthered our investments in people and technology, and all of that has obviously helped us in achieving a higher revenue hundred. If you look at it, you know we've grown 75 percent year on year, and our estimate of when we'll actually hit the ₹10,000 crore run rate is also, you know, on a fast track because of the investments that we made.

Speaker #3: And you know, we are on a good path, and we are fairly confident that we'll exit this year at EBITDA break-even. That's your first question.

Speaker #3: On the second question, you know, we look at three segments fundamentally for our business. One is, of course, our projects business, where we have raw material procurement that is directly supplied to all the sites where the execution is happening.

Sandeep Komaravelly: One is, of course, our projects business, where we have raw material procurement that is directly supplied to all the sites where the execution is happening. The second one is manufacturing entities where we supply raw materials to all of the smaller and medium-sized manufacturing companies. Third is retail. Retail is also a very important portfolio in our overall channel mix, primarily because we do a lot of finished goods or finished goods categories within this channel, which are at higher margins, and that helps us in our overall margin as well. UltraTech Building Solutions is a big part of our retail. Retail overall will be about 15% to 20% of our mix. In that, UltraTech Building Solutions is about 70% to 75% of our current revenue.

Speaker #3: The second one is manufacturing entities, where we supply raw materials to all of the smaller and medium-sized manufacturing companies. And the third is retail.

Sandeep Komaravelly: Third is retail. Retail is also a very important portfolio in our overall channel mix, primarily because we do a lot of finished goods or finished goods categories within this channel, which are at higher margins, and that helps us in our overall margin as well. UltraTech Building Solutions is a big part of our retail. Retail overall will be about 15% to 20% of our mix. In that, UltraTech Building Solutions is about 70% to 75% of our current revenue.

Speaker #3: Retail is also a very important portfolio in our in our overall channel mix primarily because you know we we do a lot of finished goods or finished goods categories within this channel which are at a higher margins.

Speaker #3: And that helps us in our overall margin as well. UBS is a big part of our retail. Retail overall would be about 15% to 20% of our mix.

Speaker #3: In that UBS is about 70 to 75 percent of our current revenue. So you know we are and we supply a whole host of categories there and you know a large part of our catalog there is also our private labels in tiles fly and bathware.

Sandeep Komaravelly: We supply a whole host of categories there and a large part of our catalog there is also our private labels in tiles, ply, and bathware, which actually go into these UltraTech Building Solutions stores. It helps them diversify their mix beyond selling just cement, and that is inherently why they keep coming back to us because it helps them retain their end customers also. That is a response on the second question. I hope that answers both of your questions.

Speaker #3: It's actually going to be UBS stores. It helps them diversify their mix beyond selling just cement, and that is inherently why they keep coming back to us—because it helps them retain their end customers also.

Speaker #3: So that's that's the response on the second question. I hope that answers both of your questions.

Naveen Sahadevan: Yeah, absolutely. Excellent. Thank you. Thank you so much.

Navin Sahadeo: Yeah, absolutely. Excellent. Thank you. Thank you so much.

Speaker #1: Yeah. Absolutely. Excellent. Thank you. Thank you so much.

Operator: Thank you. Ladies and gentlemen, due to time constraint, that was the last question for today. On behalf of Grasim Industries Limited, that concludes this conference call. Thank you all for joining us today, and you may now disconnect your lines.

Speaker #2: Thank you. Ladies and gentlemen, due to time constraint that was the last question for today. On behalf of Grassim Industries Limited that concludes this conference call.

Browse all earnings call transcripts

Q1 2027 Grasim Industries Ltd Earnings Call

Request TrialDemo

Grasim Industries

Earnings