Grasim to invest ₹2,880 crore in Aditya Birla Capital

The Board of Directors of Grasim Industries has approved an investment of up to ₹2,880 crore in the preferential issue of equity shares of its subsidiary, Aditya Birla Capital Limited (ABCL). The decision was taken during a meeting held on May 20, 2026, and the investment will be executed in one or more tranches. This move is aimed at strengthening the capital base of ABCL and supporting its next phase of growth.

The preferential issuance by ABCL totals ₹4,000 crore, with Grasim Industries subscribing to ₹2,880 crore. Additionally, Suryaja Investment Pte Limited, an Aditya Birla Group entity, will subscribe to ₹200 crore, and the International Finance Corporation (IFC) will invest ₹920 crore. The issuance price is fixed at ₹356.02 per equity share, in compliance with SEBI ICDR Regulations, subject to shareholder and other requisite approvals.

Investment Breakdown

The following table outlines the subscription details for the preferential issue:

Investor Subscription Amount (₹) Grasim Industries Limited 2,880 crore Suryaja Investment Pte Limited 200 crore International Finance Corporation 920 crore Total 4,000 crore

Strategic Implications

As a result of this capital infusion, Grasim Industries' shareholding in ABCL will increase from 52.27% to 53.08%. The proceeds from the issuance will be utilized to meet growth objectives, including the augmentation of the capital base, funding requirements for the lending business, and general corporate purposes such as investments in subsidiaries, joint ventures, and associates.

ABCL reported significant growth across its financial metrics between FY23 and FY26. The total lending portfolio across NBFC and Housing Finance grew at a 30% CAGR to exceed ₹2 lakh crore. The combined Assets Under Management (AUM) of asset management and insurance businesses increased at an 18% CAGR to approximately ₹5.9 lakh crore. Furthermore, the consolidated Profit After Tax (PAT), excluding exceptional items, rose at a 23% CAGR to ₹3,797 crore in FY26.

Grasim Industries announced its audited financial results for the financial year ended March 31, 2026. The company reported its highest-ever revenue and EBITDA for both the quarter and the full year, driven by robust performance across all business segments. Additionally, the Board recommended a dividend and approved the appointment of a new joint statutory auditor.

Financial Performance

The company achieved its highest-ever revenue of ₹1,75,431 Cr in FY26, an increase of 18% year-on-year. EBITDA for the year stood at ₹25,872 Cr, up 29% YoY. Adjusted PAT for the year grew by 33% to ₹5,203 Cr. For the quarter ended March 31, 2026 (Q4FY26), revenue reached ₹51,101 Cr, up 15% YoY, while EBITDA stood at ₹8,011 Cr, an increase of 22% YoY.

The following table summarizes the consolidated financial performance for the year and quarter:

Metric FY26 (₹ Cr) FY25 (₹ Cr) YoY Growth Q4FY26 (₹ Cr) Q4FY25 (₹ Cr) YoY Growth Revenue 1,75,431 1,48,478 18% 51,101 44,267 15% EBITDA 25,872 20,023 29% 8,011 6,548 22% Adjusted PAT 5,203 3,902 33% 2,041 1,559 31%

Segment Highlights

The Building Materials segment reported its highest-ever quarterly revenue of ₹30,042 Cr, up 19% YoY. The Paints business, Birla Opus, saw revenue increase by 52% YoY, while the B2B E-commerce platform, Birla Pivot, recorded a 136% YoY revenue growth. The Financial Services business saw its total lending portfolio grow by 32% YoY to ₹2,07,368 Cr. In the Cellulosic Fibres segment, revenue grew by 14% YoY to ₹4,614 Cr, and EBITDA doubled to ₹588 Cr.

Dividend Declaration

The Board of Directors recommended a dividend of ₹10 per equity share for the financial year ended March 31, 2026. This translates to 500% of the face value of ₹2 each. The total cash outflow on account of the dividend is estimated at ₹681 Cr. The dividend distribution is subject to shareholder approval at the ensuing Annual General Meeting.

Auditor Appointment

The Board approved the appointment of M/s Deloitte Haskins & Sells Chartered Accountants LLP as the Joint Statutory Auditor for a term of five years. The term commences from the conclusion of the 79th AGM and concludes at the end of the 84th AGM. This appointment replaces M/s BSR & Co. LLP and is subject to shareholder approval. M/s KKC & Associates LLP will continue as the other Joint Statutory Auditor.

Particulars Details New Auditor M/s Deloitte Haskins & Sells Chartered Accountants LLP Registration Number 117364W / W100739 Term 5 Years Commencement Conclusion of 79th AGM Conclusion Conclusion of 84th AGM Continuing Auditor M/s KKC & Associates LLP

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