Shares of Grasim Industries slumped 6.5% in Thursday’s trade, November 6, hitting a three-month low of ₹2,965 after the company said that Rakshit Hargave, CEO of the company’s paints division, Birla Opus, resigned from his position on Wednesday.
The unexpected exit from the newly launched paints business weighed on investor sentiment, overshadowing the company’s otherwise healthy quarterly performance.
Global brokerage firm Jefferies termed the resignation of the CEO of Grasim’s paints division as a negative surprise. It highlighted that while the paint business faced a tough quarter, market share gains continued.
Given the former CEO’s active involvement in scaling up the paint segment amid intense competition, Jefferies believes investor sentiment may remain cautious in the near term.
In its Q2FY26 earnings fling, the company said Birla Opus continues to gain market share in the Indian decorative paints market, despite industry slowdown. As per the company, revenue market share gains are driven by rapid expansion of the distribution network, higher secondary sales, enhanced brand visibility, and sustained product quality differentiation.
Grasim Industries Q2 performance
Aditya Birla Group flagship holding firm Grasim Industries on Wednesday reported a ₹1,498.04 crore for the September quarter”>52.4 per cent rise in its net profit to ₹1,498.04 crore for the September quarter of FY26, supported by a higher profitability in the cement and chemical businesses.
Its consolidated revenue stood at ₹39,900 crore, reflecting a 17% year-on-year increase compared to ₹34,223 crore in the same period last year. The company said despite monsoon-related demand weakness, the building materials segment reported revenue of ₹22,253 crore, up 28% year-on-year, driven by strong performance across the cement, paints, and B2B e-commerce businesses.
The company noted that the building materials segment continues to expand its capacities to cater to rising demand from the infrastructure and housing sectors.
Meanwhile, the chemicals business reported revenue of ₹2,399 crore, up 17% YoY, while EBITDA grew 34% YoY to ₹365 crore, driven by higher volumes in chlorine derivatives and improved ECU realizations.
Looking ahead, the company said it remains well-positioned to benefit from India’s broad-based economic momentum. With a diversified portfolio and strategic capital allocation across key sectors, Grasim expects to gain from the next phase of the country’s development.
Grasim Industries share price trend
Although the company’s shares have been volatile lately, they are trading with a 5-year return of 240%. Between April 2020 and July 2024, the stock witnessed a one-way rally without any major correction, gaining as much as 540% during this period. On October 29, the stock touched a fresh all-time high of ₹2,977 apiece.
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