Aditya Birla Group’s Flagship Delivers Strong Performance Across All Segments
Grasim Industries, the flagship company of the Aditya Birla Group, has posted its strongest-ever financial results for FY26, with consolidated revenue reaching ₹1,75,431 crore, marking an 18% year-on-year growth. The stellar performance was bolstered by robust growth across all business segments, with EBITDA hitting a record high of ₹25,872 crore, up 29% YoY.
The impressive EBITDA growth was driven by improved operational scale, efficiency gains, and enhanced profitability across the company’s diverse portfolio.
Cellulosic Fibres Segment Leads Growth
The Cellulosic Fibres business—encompassing Cellulosic Staple Fibre (CSF) and Cellulosic Fashion Yarn (CFY)—posted revenue growth of 14% YoY, supported by volume expansion and a favorable product mix.
CSF sales volume grew 12% YoY to 232 kilotons, driven by higher exports of specialty fibres. The segment EBITDA more than doubled to ₹588 crore, propelled by volume gains, operational efficiencies, favorable product mix, and benign pulp prices.
Improved Market Dynamics in China
China’s cellulosic staple fibre market recorded its third consecutive quarter of recovery during the period. Operating rates improved significantly to 92% from 82% in Q1FY26. Average CSF prices rose to $1.56 per kg from $1.52 per kg in Q1FY26, while average inventory levels declined to 11 days from 20 days, indicating better demand-supply balance.
In the domestic market, CSF prices remained elevated due to rupee depreciation and the absorption of higher sulphur costs, despite the rescinding of the Quality Control Order (QCO).
Sustainability Takes Center Stage
Sustainability continues to be a key strategic pillar for Grasim. The company increased its recycled water share to 51% of freshwater consumption, compared with 45% in FY25. Renewable power capacity also improved substantially to 24% of total power usage from 11% in the previous year.
The company launched “Livaeco Lyocell,” a third-generation man-made cellulosic fibre using an advanced closed-loop solvent spinning process with recovery rates of up to 99.7%. Grasim was honored at the BW Sustainable World Awards 2025 under the Conglomerates category for its sustainability commitments.
Capital Expenditure (Capex)
Standalone capex spent for FY26 stood at ₹1,980 Cr. In Cellulosic Fibres, the Phase I of 55 KTPA Lyocell capacity expansion project at Harihar is progressing well. Environmental Clearance (EC) has been received, detailed engineering is nearly complete, and civil construction has started. The plant is on track to be commissioned by mid-2027.
Capital Returns and Dividend Announcement
The Board of Directors has recommended a dividend of ₹10 per equity share (on ₹2 face value) for the year ended March 31, 2026, translating to a total cash outflow of ₹681 crore.
Positioned for India’s Growth Story
With the government’s Viksit Bharat initiative acting as a growth catalyst, Grasim Industries is well-positioned to capitalize on rising demand across core industries. The company’s resilient balance sheet and strategic investments position it to play a pivotal role in India’s economic expansion and contribute meaningfully to the nation’s progress.
