- Grasim Industries' Birla Opus gained 30 bps market share in Q1FY27 in decorative paints sector
- Birla Opus paints revenue rose 64% YoY and 17% QoQ to Rs 1,661 crore in Q1FY27
- Price hikes of 8.8% offset rising input costs in the paints segment during Q1FY27
The entry of Grasim Industries in the paints sector is likely to impact the smaller players in the industry more than Asian Paints, analysts said.
The Aditya Birla Group firm Grasim Industries announced its Q1 results, with its paints segment, Birla Opus, strengthening its third largest position in India's organised decorative paints industry
Grasim said Birla Opus' revenue market share expanded by 30 bps sequentially in Q1FY27. Including Birla White Putty, the combined revenue market share is nearing early teens.
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Paints revenue stood at Rs 1,661 crore, up 64% YoY and 17% QoQ. This growth momentum was further supported by strong dealer onboarding, with first-time billed dealers increasing sequentially by over 10%, reflecting growing brand pull and wider acceptance of Birla Opus across markets, Grasim said.
As industry-wide input costs rose sharply, the business responded with calibrated price revisions. The overall impact of price hikes stood at 8.8% in Q1FY27.
Analysts' Take
Brokerage firm Macquarie said that a part of the price hike benefit will also flow into the September quarter sales.
It said that the gap in QoQ growth rates between Asian Paints and Grasim Industries narrowed, though Grasim indicated this was largely due to lower channel inventory fill at Grasim than peers.
Macquarie expects that Grasim's entry in the paints industry will affect smaller peers and this drives its preference for Asian Paints in the space.
Morgan Stanley noted that the increased competitive intensity across players continues in the paints sector.
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Opus clearly highlighting the focus on Rs 10,000 crore revenue target by FY28 and 50%+ growth for FY27. Birla Opus posted revenue at Rs 1,660 crore a 64% YoY, 17% QoQ revenue growth versus 16% QoQ standalone revenue growth for Asian Paints, said the brokerage firm.
Opus gained 30 bps market share sequentially and including putty, their market share is nearing early-teens
Dulux too re-emphasized the ambition of gaining the number 3 spot and number 1 spot in terms of market share in the decorative and industrial space respectively, it added.
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