Grasim Industries share price jumps 3% despite posting weak Q3 results 2025. Do you own?

Grasim Industries’ share price rose by nearly 3 per cent on Tuesday, February 11, despite posting weaker-than-anticipated earnings for the third quarter on Monday.

Grasim Industries’ shares were up by 2.77 per cent, reaching an intraday high of ₹2,542 per share in today’s trading. However, the stock later trimmed its gains and was up 1.66 per cent at ₹2,514.4 per share as of 11:11 AM.

Aditya Birla’s flagship company reported a 41 per cent year-on-year (YoY) decline in its consolidated net profit, which stood at ₹899 crore for the third quarter. However, the company’s revenue from operations saw a 9 per cent YoY rise, reaching ₹34,793 crore during the same period.

Profit growth was affected by higher interest and depreciation costs, driven by investments in the building materials sector.

The consolidated EBITDA for the quarter fell 9 per cent year-on-year to ₹4,668 crore, mainly due to reduced realizations in the cement segment and initial investments to build a robust consumer-focused paints business.

Segment-wise growth

Cellulosic Fibres recorded a 6 per cent year-on-year increase in revenue, reaching ₹3,934 crore, while EBITDA declined by 18% to ₹331 crore, primarily due to higher input costs.

In Q3FY24, CSF prices remained steady at $1.65/kg, supported by stable demand in China. However, sales volume stayed at 205 KT, impacted by production disruptions at the Excel Plant in Kharach and seasonally weaker demand towards the quarter’s end.

The CFY segment experienced a 10 per cent YoY volume growth from a lower base, but realisations were under pressure due to an influx of cheaper imports from China.

Revenue from the chemicals business rose 12 per cent YoY to ₹2,226 crore, while EBITDA surged 25 per cent to ₹329 crore, driven by improved Caustic Soda realisations and higher profitability in the Chlorine Derivatives segment.

An oversupply of Chlorine led to continued negative realisations, limiting ECU realisation growth to 8 per cent YoY at ₹34,041/ton. Caustic Soda sales volume edged up by 1 per cent YoY, as lower power availability affected production at the Vilayat plant.

The building materials segment posted a 10 per cent YoY revenue growth, reaching ₹18,784 crore, primarily fueled by new businesses, Birla Opus and Birla Pivot.

However, lower realisations in UltraTech Cement and initial investments in positioning ‘Birla Opus’ as a consumer-facing brand in India’s decorative paints market led to a reduced segment EBITDA of ₹2,806 crore.

The Board has approved a 110K TPA Lyocell capacity expansion at Harihar, Karnataka, with the first 55K TPA phase set for completion by mid-2027 at an investment of ₹1,350 crore.

This expansion will strengthen the company’s portfolio of eco-friendly specialty fibres. With this investment, Grasim’s total Lyocell capacity, marketed under the ‘Birla Excel’ brand, will reach 153K TPA, further solidifying its market position.