Grasim Industries Q2 Net Loss at ₹234 Crore as Birla Pivot Revenue Grows 66%

Aditya Birla Group flagship Grasim Industries reported a consolidated net loss of ₹234 crore for the second quarter of FY27, compared with a net profit of ₹595 crore in the corresponding quarter last year. The loss was primarily driven by an exceptional charge of approximately ₹767 crore related to impairment and estimated exposure in its Canadian pulp joint venture, AV Group NB Inc.

Despite the reported loss, Grasim delivered strong revenue growth during the July-September quarter. Consolidated revenue from operations increased 26% year-on-year to a record ₹50,105 crore from ₹39,900 crore in Q2 FY26. Consolidated EBITDA rose 25% to ₹6,513 crore, while adjusted profit after tax, excluding exceptional items, stood at ₹536 crore. Its B2B e-commerce platform, Birla Pivot, was among the standout performers, recording 66% revenue growth to ₹2,785 crore.

Grasim Industries Q2 FY27 Financial Results

Grasim’s latest results reflect the performance of its diversified businesses, including cement, chemicals, cellulosic fibres, paints, financial services and B2B e-commerce.

Although the exceptional charge pushed the company into a consolidated loss, its revenue and EBITDA continued to grow.

Financial metric	Q2 FY27	Q2 FY26	YoY change
Revenue from operations	₹50,105 crore	₹39,900 crore	+26%
Consolidated EBITDA	₹6,513 crore	₹5,217 crore	+25%
Adjusted PAT	₹536 crore	₹595 crore	-10%
Reported PAT attributable to owners	-₹234 crore	₹595 crore	Loss
Exceptional charge	₹767 crore	—	—

The difference between adjusted and reported profitability is important. Grasim’s adjusted PAT excludes exceptional items, while its reported result includes the impact of the Canadian joint venture impairment and estimated exposure.

The company said its consolidated revenue growth was supported by building materials, cellulosic fibres and financial services, alongside expansion in its newer businesses.

Canadian Pulp Joint Venture Impairment Drives Quarterly Loss

The principal reason behind Grasim’s consolidated loss was an exceptional charge of approximately ₹767 crore related to AV Group NB Inc., its pulp joint venture in Canada.

The joint venture temporarily idled operations at its dissolving-grade pulp mill in Nackawic, New Brunswick, following an assessment of continuing operational challenges, market conditions and broader macroeconomic factors.

Grasim recognised an impairment of its investment and provisions for estimated exposure associated with the joint venture.

The charge affected the company’s reported profitability despite growth in its major operating businesses.

The development highlights the risks associated with operating in international markets, particularly when businesses face changing demand conditions, input costs and broader economic pressures.

Birla Pivot Revenue Jumps 66% to ₹2,785 Crore

Grasim’s B2B e-commerce platform, Birla Pivot, continued to record strong growth during Q2 FY27.

Revenue increased 66% year-on-year to ₹2,785 crore. The platform’s annualised revenue run rate (ARR) also moved above ₹11,000 crore, reflecting its expanding business activity.

Birla Pivot operates as an online marketplace for building materials and related industrial products. It connects businesses, retailers and project buyers with suppliers through a digital procurement platform.

The company said project-related transactions accounted for approximately 90% of Birla Pivot’s revenue, while retail contributed the remaining 10%.

Building materials, non-ferrous metals and chemicals were among its key growth categories. The platform is also expanding its product assortment, with private-label offerings across plywood, tiles and bathroom products gaining traction.

Grasim said gross margins were gradually improving, although Q2 FY27 EBITDA was affected by one-time employee-related expenses.

The company is targeting revenue of more than ₹12,000 crore for FY27 and expects Birla Pivot to reach EBITDA profitability in the second half of the financial year.

Birla Opus Revenue Increases 35%

Grasim’s paints business, Birla Opus, also recorded revenue growth during the September quarter.

Revenue increased 35% year-on-year to ₹1,337 crore. For the first half of FY27, revenue reached ₹2,999 crore, up 50% from the corresponding period last year.

The business is expanding its distribution network and product portfolio as it competes in India’s organised decorative paints market.

Grasim said Birla Opus had expanded its network to more than 61,000 first-time billed dealers across over 12,600 towns. Its distribution footprint also included more than 1,760 franchise stores and approximately 150 depots.

The company is targeting a double-digit revenue market share in the organised decorative paints market during the second half of FY27.

Birla Opus has been investing in distribution, brand awareness and customer engagement to build its position in a competitive market.

Cement and Cellulosic Fibres Support Growth

Grasim’s established businesses also contributed to the company’s consolidated revenue expansion.

The building materials segment, which includes cement, paints and B2B e-commerce, recorded revenue of ₹27,378 crore, up 23% year-on-year. Segment EBITDA increased 19% to ₹3,510 crore.

Cement remained the largest contributor within building materials. Revenue increased 19%, supported by higher sales volumes and pricing discipline. UltraTech Cement, Grasim’s subsidiary, reported consolidated sales volumes of 38.2 million tonnes, representing 12.9% year-on-year growth.

The cellulosic fibres business recorded revenue growth of 29% to ₹5,344 crore. Higher sales volumes, a favourable product mix and stable domestic realisations supported the performance.

Cellulosic staple fibre sales volumes increased 7% to 224,000 tonnes, while cellulosic fashion yarn volumes grew 2% to 11,600 tonnes. Segment EBITDA increased 49% to ₹522 crore.

The chemicals business reported revenue growth of 15% to ₹2,759 crore. Caustic soda sales volumes increased 8% to 317,000 tonnes, while chlorine derivatives supported overall growth. However, segment EBITDA declined 11% to ₹326 crore due to higher power costs and lower profitability in specialty chemicals.

Financial Services Portfolio Expands 32%

Grasim’s financial services business also delivered growth during Q2 FY27.

The combined lending portfolio of its non-banking financial company and housing finance company businesses increased 32% year-on-year to ₹2,33,930 crore.

The growth reflects expansion across its lending operations and the wider financial services portfolio.

The financial services business remains an important part of Grasim’s diversified structure, providing exposure to lending, asset management and insurance markets through its group companies.

Standalone Profitability Shows a Different Picture

While Grasim reported a consolidated loss, its standalone financial performance was significantly stronger.

Standalone revenue reached ₹12,747 crore, up 33% year-on-year. EBITDA increased 158% to ₹4,615 crore, while adjusted profit after tax rose 289% to ₹3,132 crore.

Reported standalone PAT stood at ₹2,306 crore, up 187%.

However, the standalone numbers included a dividend receipt of ₹3,968 crore from UltraTech Cement. This dividend is recognised in Grasim’s standalone accounts but eliminated when preparing consolidated financial statements.

The standalone results also included an exceptional charge of ₹825 crore related to the Canadian pulp joint venture.

For the first half of FY27, consolidated revenue increased 23% to ₹98,821 crore, while EBITDA rose 25% to ₹14,591 crore. Adjusted PAT reached ₹2,690 crore, up 32%.

The Bigger Picture

Grasim’s Q2 FY27 results demonstrate the scale and diversity of its business portfolio. Revenue reached a record level, while EBITDA expanded across several major operations. Birla Pivot’s 66% growth and Birla Opus’s 35% revenue increase also highlight the company’s efforts to build newer growth engines beyond its established businesses.

However, the consolidated loss shows how exceptional charges and overseas investments can affect reported profitability even when core operating performance remains relatively strong. The Canadian pulp joint venture’s impairment is a reminder that diversified businesses remain exposed to risks across geographies and industries.

Grasim’s next challenge will be to improve profitability across its newer ventures while maintaining growth in cement, chemicals and cellulosic fibres.

Looking Ahead

Grasim is entering the second half of FY27 with strong revenue momentum across its building materials, cellulosic fibres and financial services businesses. Birla Pivot is targeting more than ₹12,000 crore in revenue for the full financial year, while Birla Opus is working towards a double-digit revenue market share in the organised decorative paints market. These businesses will remain important indicators of the company’s ability to scale its newer growth engines.

Investors will also monitor the financial impact of the Canadian pulp joint venture, along with operating margins and cash generation across the group’s businesses. The key question is whether Grasim can translate its record revenue and growing EBITDA into sustained consolidated profitability while continuing to invest in its expansion plans.