Grasim’s Cellulosic Fibres And Chemicals Drive Strong Q1 FY27 Performance
Grasim Industries reported a strong performance in its core Cellulosic Fibres and Chemicals businesses during the first quarter of FY27, supported by favourable market conditions, improved product mix and higher realisations. The company’s consolidated revenue rose 21% year-on-year to Rs 48,716 crore, while EBITDA increased 26% to a record Rs 8,077 crore.
The Cellulosic Fibres business delivered a notable improvement, with segment revenue rising 12% year-on-year to Rs 4,530 crore. Growth was driven by higher global cellulose staple fibre (CSF) prices, rupee depreciation and a favourable product mix. Segment EBITDA nearly doubled to Rs 632 crore, aided by a higher contribution from specialty fibres and a low base effect.
Global CSF prices remained firm during the quarter, increasing 19% year-on-year to an average of US$1.81 per kg, supported by strong operating rates and lower inventory levels in China. While Grasim’s CSF volumes declined due to planned maintenance shutdowns and softer domestic demand, export sales more than doubled compared with the previous year.
The Chemicals business also recorded healthy growth. Revenue increased 10% year-on-year to Rs 2,640 crore, while EBITDA rose 16% to Rs 491 crore. The performance was supported by stronger specialty chemicals and chlorine derivatives businesses, as well as improved caustic soda realisations. Specialty Chemicals increased their share of the overall Chemicals portfolio to 30%, reflecting the company’s focus on value-added products.
In the Textiles segment, revenue grew 26% year-on-year to Rs 690 crore, while EBITDA surged to Rs 45 crore from Rs 9 crore in the corresponding quarter last year, driven by higher realisations.
Grasim stated that the strong performance of its Cellulosic Fibres, Chemicals and Textiles businesses, coupled with ongoing investments in growth and sustainability initiatives, positions the company well to capitalise on emerging opportunities in India’s evolving textile and materials sector.
