According to latest reports from Informist Media, shares of Grasim Industries gained 2% to their intraday high of ₹3,385.90 ahead of its June quarter earnings announcement. The stock was trading at ₹3,352, up 1% from Tuesday at 1123 IST, with nearly 477,000 shares changing hands - almost twice the volume from the same time Tuesday. This positive market reaction comes as the company prepares to announce its Q1 FY27 results later in the day.
As reported by Informist Media, brokerage estimates for Grasim Industries' bottom line vary significantly ahead of the Q1 results. Motilal Oswal Financial Services expects net profit at ₹700 million, while Kotak Institutional Equities sees it at ₹1.30 billion. However, Nuvam Wealth Management expects the company to post a net loss of ₹712 million, compared to the net loss of ₹1.18 billion reported in the year-ago quarter. The company's revenue is expected to be between ₹118.16 billion and ₹129.12 billion for the June quarter, up from ₹92.23 billion in the previous year.
According to reports from NDTV Profit, Grasim Industries Ltd. delivered a strong Q1 performance that surpassed brokerage estimates. The company's reported results were driven by lower than-estimated losses in the paints and B2B businesses, while chemical outperformance was partially offset by reduced VSF profitability. This performance demonstrates the company's ability to navigate market challenges while maintaining operational efficiency across its diversified business portfolio.
As reported by NDTV Profit, brokerage firm Motilal Oswal has reiterated its Buy rating on Grasim Industries Ltd. with a target price of ₹3,800, implying a potential upside of 15% from current levels of ₹3,308. The brokerage values the company's holdings in listed subsidiary companies by assigning a discount of 35%, while the VSF and chemical business are valued at 7x FY28E EV/Ebitda. The paint business is estimated at three times of FY28E revenue, B2B e-commerce at 1x of FY28E revenue, and the renewable business at 10x FY28E EV/Ebitda.
According to the report, in the paints segment, margins are expected to remain under pressure in the near term due to high-cost inventory and higher advertising expenses. However, Grasim has reiterated its targets of achieving ₹10,000 crore in paints' revenue and breakeven by FY28E. This indicates the company's confidence in its long-term paints strategy despite current margin pressures from operational costs.
As reported by NDTV Profit, in the chemical business, chlorine integration is likely to increase to ~68% by FY27 end vs ~65% in Q1 FY27, which is estimated to support margin improvement. Meanwhile, Motilal Oswal estimates VSF margin to improve marginally in the near term due to higher prices, though long-term sustainability depends on global demand and input costs. This chemical segment performance contributed significantly to the overall Q1 results that exceeded brokerage estimates.
