Grasim Industries Ltd in on brokerages' radar after the company reported an improvement in its standalone Q4FY26 performance on a year‑on‑year basis, with net loss narrowing to Rs 164 crore from a loss of Rs 288 crore a year earlier.
Revenue rose sharply by 31.9% to Rs 11,774 crore compared with Rs 8,926 crore in the same period last year. Operating performance also strengthened, with EBITDA more than doubling to Rs 540 crore from Rs 221 crore, while EBITDA margin expanded to 4.6% from 2.5%.
Grasim Industries Q4FY26 (Standalone, YoY)
- Net Loss at Rs 164 crore versus loss of Rs 288 crore
- Revenue up 31.9% at Rs 11,774 crore versus Rs 8,926 crore
- EBITDA at Rs 540 crore versus Rs 221 crore
- EBITDA Margin at 4.6% versus 2.5%
Brokerages were optimistic on Grasim, with Jefferies maintaining a Buy rating on Grasim, and raising its target price to Rs 3,600 from Rs 3,440. Citi echoed the sentiment, also retaining its a Buy rating, and raising its target price to Rs 3,600 from Rs 3,450.
Jefferies on Grasim
- Jefferies maintains a Buy rating on Grasim and has raised its target price to Rs 3,600 from Rs 3,440.
- The brokerage said improving performance in Grasim's standalone businesses helped the company deliver a strong exit to FY26.
- Q4 earnings beat estimates, driven by robust performance in the viscose staple fibre (VSF) business and lower losses in newer ventures.
- The paints business reported strong revenue growth, with market share continuing to expand, and Jefferies expects this trajectory to continue through FY27.
- It also expects the company's B2B e-commerce business to turn profitable by the end of FY27.
- Strong VSF performance was supported by a favourable product mix, operational efficiencies and lower pulp prices.
Citi on Grasim
- Citi maintains a Buy rating on Grasim and has raised its target price to Rs 3,600 from Rs 3,450.
- The brokerage described Q4 as resilient, with VSF EBITDA improving sequentially.
- It highlighted that Grasim's paints business has now crossed a 10% market share milestone.
- Citi believes the stock will be increasingly driven by the performance of its cement and paints businesses, with continued support from the VSF and chemicals segments.
- The brokerage also expects the holding company discount to narrow further as paints volumes and profitability improve and as Grasim benefits from higher dividend inflows from UltraTech Cement.
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