Grasim Industries released its Q1 FY26 results on 8 August 2025, posting a solid year-on-year (YoY) uptick in both revenue and profitability at the consolidated level. The company reported consolidated revenue from operations of ₹40,118.08 crore (vs ₹34,609.75 crore in Q1 FY25) and PAT of ₹1,418.68 crore (vs ₹1,075.03 crore), translating to 15.92% and 31.97% YoY growth respectively. Profit before tax (PBT) rose to ₹9,164.36 crore from ₹6,985.13 crore, up 31.20% YoY.
On a standalone basis, revenue grew strongly but profitability remained negative: standalone revenue climbed to ₹9,223.13 crore (vs ₹6,893.87 crore), while standalone PAT was -₹118.18 crore (vs -₹52.12 crore), indicating that the loss widened by ~126.75% even as revenue expanded 33.79% YoY.
Below, a clean read of the print, key takeaways, and what to monitor into the next quarter.
The headline numbers (Consolidated)
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Revenue from operations: ₹40,118.08 crore (Q1 FY25: ₹34,609.75 crore)
Growth: +₹5,508.33 crore / +15.92% YoY -
PBT: ₹9,164.36 crore (Q1 FY25: ₹6,985.13 crore)
Growth: +₹2,179.23 crore / +31.20% YoY -
PAT: ₹1,418.68 crore (Q1 FY25: ₹1,075.03 crore)
Growth: +₹343.65 crore / +31.97% YoY -
PAT margin: 3.54% (Q1 FY25: 3.11%)
(PAT as % of revenue; improvement of ~43 bps YoY)
What this implies: Growth was broad enough to lift operating profit before tax and expand net profitability faster than the top line. The uptick in PAT margin suggests better operating leverage and/or a friendlier mix, partly offset by tax and minority interest at the consolidated level.
The headline numbers (Standalone)
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Revenue from operations: ₹9,223.13 crore (Q1 FY25: ₹6,893.87 crore)
Growth: +33.79% YoY -
PBT: ₹528.29 crore (Q1 FY25: ₹418.23 crore)
Growth: +26.31% YoY -
PAT: -₹118.18 crore (Q1 FY25: -₹52.12 crore)
Change: Loss widened by ~126.75% YoY
What this implies: The parent entity posted strong sales growth and higher PBT, but bottom-line remained in the red, with the loss widening YoY. This divergence between PBT and PAT suggests heavier below-the-line impacts (tax/exceptionals/other items) at the standalone level despite operational scaling, and stands in contrast to the healthier consolidated outcome.
Growth math at a glance
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Revenue growth: +15.92% YoY (₹40,118.08 crore vs ₹34,609.75 crore)
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PBT growth: +31.20% YoY (₹9,164.36 crore vs ₹6,985.13 crore)
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PAT growth: +31.97% YoY (₹1,418.68 crore vs ₹1,075.03 crore)
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PAT margin: 3.54% vs 3.11% YoY (improvement of ~43 bps)
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Standalone revenue growth: +33.79% YoY
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Standalone PAT: loss widened ~126.75% YoY
The arithmetic shows profitability expanding faster than revenue in the consolidated book—an encouraging sign—while the standalone print signals pressure below the operating line.
Market check (as provided)
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11 August 2025 (opening bell): ₹2,729.20 per share
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Intraday (as stated): ₹2,762.80 per share (above the open)
Trailing performance (as provided):
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1-year: ~7.46%
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5-year: ~342.78%
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Since-listing (max): ~3,658.40%
(Remember that equity returns are volatile; investors should align entries with risk tolerance and horizon.)
Five quick takeaways
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Consolidated momentum looks healthy. Double-digit revenue growth and ~32% PAT growth, with margin expansion, indicate operating scale and some efficiency gains.
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Standalone loss widened despite revenue and PBT growth. This gap points to items below PBT (tax/exceptionals/other lines) weighing on the parent entity’s net outcome in the quarter.
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PBT-to-PAT compression is pronounced. With consolidated PBT at ₹9,164 crore and PAT at ₹1,419 crore, tax/minority/associate effects meaningfully dilute net. This is not unusual in diversified groups but is worth monitoring.
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YoY comparisons are clean and favorable. Absolute increases—₹5,508 crore in revenue and ₹344 crore in PAT—underline a solid YoY base expansion.
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Execution vs. volatility. Near-term share moves often reflect flow and sentiment; the multi-quarter story will hinge on margin sustainability and capital allocation discipline.
What to watch next (investor lens)
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Margin durability: Q1 shows a ~43 bps YoY improvement in consolidated PAT margin. Watch gross/EBITDA trends and input-cost dynamics to judge sustainability.
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Standalone reconciliation: The parent reported higher PBT but a wider PAT loss. Tracking the bridge from PBT to PAT (tax, exceptional items, finance costs, other income) will be key to understanding when standalone returns normalize.
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Working capital & cash conversion: With revenue up ~16% YoY, monitor receivables and inventory turns. Strong cash conversion can de-risk growth and support capex without undue leverage.
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Capital allocation cadence: Growth capex, any large project ramp-ups, and intra-group funding priorities influence ROCE and cash yields; clarity here helps frame medium-term valuation.
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Segment mix and operating leverage: As higher-margin or faster-growing segments scale, consolidated profitability can inflect. Watch segmental disclosures for volume/mix cues.
Risk dashboard (not exhaustive)
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Input-cost volatility: Raw material and energy swings can compress margins, particularly if pricing power is transient or competitive intensity rises.
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Execution and ramp risks: Large capex or new initiatives can weigh on near-term standalone profitability before they contribute to consolidated earnings.
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Macro sensitivity: Demand cycles, rates, and currency moves can affect both top-line and translation of profits across entities.
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Regulatory/ESG factors: Compliance costs and sustainability commitments increasingly shape cost curves and access to capital.
Plain-English summary
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Consolidated: Strong quarter—revenue up 15.92%, PAT up 31.97%, PAT margin up to 3.54% from 3.11%.
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Standalone: Sales up 33.79%, PBT up 26.31%, but net loss widened YoY—so the parent entity’s bottom line still needs attention.
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Storyline: Operating momentum is evident at the group level; the task ahead is translating more of that PBT into bottom-line at the standalone level while preserving margin gains.
Numbers you can keep on a sticky note
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Revenue: ₹40,118.08 cr (Q1 FY26) | ₹34,609.75 cr (Q1 FY25)
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PBT: ₹9,164.36 cr | ₹6,985.13 cr
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PAT: ₹1,418.68 cr | ₹1,075.03 cr
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PAT margin: 3.54% | 3.11%
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Standalone revenue: ₹9,223.13 cr | ₹6,893.87 cr
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Standalone PAT: -₹118.18 cr | -₹52.12 cr
Final word
For Q1 FY26, consolidated results did the heavy lifting: top-line growth near 16%, PAT up ~32%, and a modest expansion in net margin. The standalone print shows progress at the operating line (PBT), but PAT remains negative with the loss larger YoY—an area to watch as the year unfolds. If the group sustains revenue momentum and converts more of PBT to PAT at the parent level, the earnings trajectory can continue to firm up. As always, anchor decisions to your horizon and risk appetite—and let the next few quarters confirm whether these trends persist.
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