Grasim Industries Reports Stable Textile Performance; Lyocell Project On Track
Grasim Industries Limited reported Q1FY26 revenue from its textile business at Rs 547 Cr., down 3% year-on-year due to subdued market demand. EBITDA improved sequentially but remained under pressure compared to last year, impacted by higher input costs in the linen segment.
Cellulosic Fibres: Cellulosic Staple Fibre (CSF) and Cellulosic Fashion Yarn (CFY)
China operating rates stood flat YoY at 82% in Q1FY26, though were lower compared to 87% in Q4FY25 due to seasonality and subdued demand conditions. Average inventory holding increased to 2-Yr high levels of 20 days compared to an average of 11 days in FY25. This has led to correction in CSF prices at average of US$ 1.52/kg in Q1FY26, down 7% YoY. Our domestic CSF sales volumes grew by 2% YoY though overall CSF sales volume de-grew by 1% YoY at 209 KT due to lower exports. CFY business recorded volume growth of 6% YoY, however realisations remained under pressure due to low priced imports from China. Cellulosic Fibres segment revenue was up 7% YoY at Rs 4,043 Cr. Higher key input prices, which were passed on partially, has led to reduction in EBITDA by 20% YoY to Rs 322 Cr.
The company’s Cellulosic Fibres business continues to progress with its major expansion plans. Phase-1 of its Lyocell project, with a capacity of 55,000 TPA (total planned capacity: 110,000 TPA), is on schedule for commissioning by mid-2027. The project is a key part of Grasim’s strategy to strengthen its position in the sustainable fibres segment, catering to growing global demand for eco-friendly textiles.
Grasim also advanced its sustainability goals with the inauguration of the Reviva-M unit at its Nagda plant in April 2025. This facility mechanically processes post-consumer textile waste into high-quality fibres, reinforcing the company’s circularity initiatives. On a standalone basis (including paints), 48% of its water use came from recycled sources, while renewable energy accounted for 23% of total capacity.
With India’s textile sector poised for long-term growth, Grasim is positioning its CSF and CFY portfolio to capture rising demand in both domestic and export markets, supported by its ongoing investments in innovation and sustainable manufacturing.
