Grasim Industries Reports 11.6% Profit Growth in Q2; Paint Unit CEO Resigns

Grasim Industries Ltd., the flagship holding company of the Aditya Birla Group, has reported its financial results for the second quarter ending September 30, 2025. The company posted a net profit of ₹804.6 crore, marking an 11.6% rise compared to ₹721 crore in the same quarter of the previous year. Total revenue from operations saw a significant jump of 26% year-on-year, reaching ₹9,610.3 crore, up from ₹7,623.3 crore in the corresponding period last year. Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA), a measure of operational profitability, increased by 12.5% to ₹366 crore. Despite the growth in revenue and profit, the EBITDA margin slightly decreased by 50 basis points to 3.8% from 4.3% year-on-year, suggesting increased operational costs or pricing pressures impacting profitability relative to sales. In a separate development, Rakshit Hargave has resigned from his position as CEO of Grasim's paint unit, Birla Opus, with his resignation effective November 1, 2025.

Impact This news has a moderate impact on investors. The profit and revenue growth are positive signals, but the declining EBITDA margin warrants attention as it might indicate underlying cost management challenges or competitive pressures. The resignation of the paint unit CEO could cause short-term uncertainty for that specific segment, though Grasim's diversified nature might mitigate broader company impact. Investors will likely watch for further commentary on margin improvement strategies and leadership stability in the paint business. Impact rating: 5/10

Explanation of Terms EBITDA: Earnings Before Interest, Tax, Depreciation, and Amortisation. This metric shows a company's operating performance before accounting for non-operating expenses like interest, taxes, and non-cash expenses like depreciation and amortisation. It is used to assess the profitability of a company's core business operations. Basis points: A basis point is one-hundredth of one percent. For example, 50 basis points is equal to 0.50% or 0.005.