Grasim Inds Q1 FY27 Results (NSE: GRASIM)
Signal: Growth reaccelerated
The read
The key inflection is earnings acceleration: consolidated revenue grew 21.4% YoY to ₹48716.2 crore, EBITDA grew 25.6% to ₹8077.48 crore and EBIT grew 31.8% to ₹6089.13 crore, while PAT rose 51.3% to ₹2145.91 crore; standalone operations also turned around to ₹246.65 crore PAT, but its 48.4% other-income share of PBT means the parent-level recovery warrants quality scrutiny.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹48,716.2 Cr | 21.4% | N/A |
| EBIT | ₹6,089.13 Cr | 31.8% | |
| Net profit | ₹2,145.91 Cr | 51.3% | |
| EPS | ₹31.64 | 51.3% | |
| EBIT margin | 16.6% |
P&L walk
Consolidated revenue rose 21.4% YoY to ₹48716.2 crore, EBITDA grew faster at 25.6% to ₹8077.48 crore, EBIT increased 31.8% to ₹6089.13 crore and PAT rose 51.3% to ₹2145.91 crore; the filing does not disclose the consolidated line-by-line cost bridge in the supplied statement.
Segments
No segment results table is supplied; the material basis divergence is that consolidated PAT of ₹2145.91 crore is far above standalone PAT of ₹246.65 crore, confirming that subsidiaries drive most group earnings.
Key positives
- Consolidated revenue reached ₹48716.2 crore, up 21.4% YoY, with EBITDA of ₹8077.48 crore growing 4.2 percentage points faster than revenue.
- Consolidated EBIT rose 31.8% YoY to ₹6089.13 crore, showing stronger operating conversion than the 21.4% revenue growth.
- Consolidated PAT increased 51.3% YoY to ₹2145.91 crore and EPS rose at the same 51.3% rate to ₹31.64, with no PAT-to-EPS divergence.
- Standalone EBITDA grew 107.0% YoY to ₹1093.63 crore and operating margin expanded 390bps YoY to 8.31%, marking a turnaround in the parent operating base.
Key concerns
- Standalone finance costs increased 30.7% YoY to ₹269.48 crore, faster than standalone revenue growth of 27.9%.
- Standalone other income was ₹143.97 crore, equal to 48.4% of standalone PBT, so the ₹246.65 crore standalone PAT turnaround is partly dependent on non-operating income.
- Consolidated earnings remain heavily dependent on subsidiaries: consolidated PAT of ₹2145.91 crore was approximately 8.7 times standalone PAT of ₹246.65 crore.
- The proposed acquisition of Solenergi Power Private Limited and subsidiaries at an enterprise value of ₹17200 crore is subject to regulatory approvals and is proposed to be funded through debt and equity, creating execution and leverage-monitoring needs.
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