Dear Members,
Your Directors are pleased to present the 79th Annual Report in the
form of Seventh Integrated Report of our Company along with the Audited Financial
Statements for the year ended 31st March 2026.
Financial Performance
The financial performance of our Company for the year ended 31 st March
2026 is summarised below:
|
Consolidated |
Standalone |
| Particulars |
FY 2025-26 |
FY 2024-25 |
FY 2025-26 |
FY 2024-25 |
| Revenue from Operations |
1,75,430.74 |
1,48,477.89 |
41,039.48 |
31,563.23 |
| Other Income |
1,180.12 |
1,459.04 |
1,787.90 |
1,715.11 |
| Total Income |
1,76,610.86 |
1,49,936.93 |
42,827.38 |
33,278.34 |
| Earnings Before Interest, Tax, Depreciation and
Amortisation |
25,872.09 |
20,023.13 |
3,558.43 |
2,856.58 |
| (EBITDA) |
|
|
|
|
| Less: Finance Costs* |
(3,539.92) |
(2,802.28) |
(894.70) |
(683.69) |
| Less: Depreciation and Amortisation Expense |
(7,725.94) |
(6,453.73) |
(2,089.75) |
(1,676.21) |
| Profit Before Share in Profit of Equity Accounted
Investees, |
14,606.23 |
10,767.12 |
573.98 |
496.68 |
| Exceptional Items and Tax |
|
|
|
|
| Share in Profit of Equity Accounted Investees |
189.44 |
296.79 |
- |
- |
| Less: Exceptional Items |
(322.92) |
(238.85) |
(129.53) |
(163.98) |
| Profit Before Tax (PBT) |
14,472.75 |
10,825.06 |
444.45 |
332.70 |
| Less: Tax Expense |
(4,172.46) |
(3,068.73) |
(96.06) |
(120.60) |
| Profit for the Year Attributable to: |
10,300.29 |
7,756.33 |
348.39 |
212.10 |
| Shareholders of the Company |
4,966.48 |
3,705.68 |
348.39 |
212.10 |
| Non-Controlling Interest |
5,333.81 |
4,050.65 |
- |
- |
| Other Comprehensive Income for the Year Attributable to: |
1,483.14 |
424.27 |
1,290.45 |
(263.55) |
| Shareholders of the Company |
1,432.15 |
105.24 |
1,290.45 |
(263.55) |
| Non-Controlling Interest |
50.99 |
319.03 |
- |
- |
| Total Comprehensive Income for the Year Attributable to: |
11,783.43 |
8,180.60 |
1,638.84 |
(51.45) |
| Shareholders of the Company |
6,398.63 |
3,810.92 |
1,638.84 |
(51.45) |
| Non-Controlling Interest |
5,384.80 |
4,369.68 |
- |
- |
| Opening Balance in Retained Earnings |
10,737.93 |
12,014.51 |
9,646.47 |
10,113.35 |
| Profit for the Year Attributable to Shareholders of the
Company |
4,966.48 |
3,705.68 |
348.39 |
212.10 |
| Gain/(Loss) on Re-measurementofDefined Plans Benefit |
(6.73) |
(8.68) |
10.81 |
(10.86) |
| Gain on Sale of Non-Current Investments Transferred to
Retained |
- |
561.80 |
- |
- |
| Earnings from Equity Instruments through OCI |
|
|
|
|
| Less: Stake Dilution in Subsidiary Companies |
(124.26) |
(762.33) |
- |
- |
| Amount Available for Appropriation |
15,558.69 |
15,510.98 |
10,005.67 |
10,314.59 |
| Transfer to Debenture Redemption Reserve |
(35.70) |
(58.53) |
- |
- |
| Transfer to General Reserve |
- |
(3,500.00) |
- |
- |
| Transfer to Special Reserve Fund |
(751.31) |
(656.71) |
- |
- |
| Dividend Paid on Equity Shares |
(679.23) |
(668.12) |
(679.23) |
(668.12) |
| Other movements during the Year |
243.42 |
110.31 |
- |
- |
| Closing Balance in Retained Earnings |
14,350.60 |
10,737.93 |
9,326.44 |
9,646.47 |
*Other than Finance Cost relating to NBFC/HFC's Business which are
considered as part of their operations in consolidated financial performance.
Dividend
Based on our Company's performance, your Directors have
recommended a dividend of 500% at the rate of I 10 per equity share of face value of I 2
each (on fully paid-up shares and on partly paid-up shares in proportion to their share in
the paid-up share capital) for the year ended 31st March 2026.
The dividend, if approved by the Members, would involve a cash outflow
of ~I 680.61 crore.
In terms of the provisions of the Income-Tax Act, 2025, dividend shall
be taxable in the hands of shareholders at applicable rate of taxes. Our Company shall
withhold tax at source appropriately for applicable cases. The recommended dividend is in
line with our Company's Dividend Distribution Policy which is available on the
Company's website at: https://www.grasim.com/upload/
pdf/Grasim_Dividend_Policy_16.pdf
Transfer to Reserves
The Board of Directors (‘the Board') of the Company has
decided not to transfer any amount to the General
Reserves, for the year ended 31st March 2026.
Performance Review
On a consolidated basis, the revenue from operations for FY 2025-26
stood at I 1,75,430.74 crore registering a growth of 18.15 % as compared to the previous
year of I 1,48,477.89 crore. The Consolidated EBITDA stood at I 25,872.09 crore for FY
2025-26, which was I 20,023.13 crore in the previous year. The Consolidated PAT
attributable to owners is I 4,966.48 crore for FY 2025-26, which was I 3,705.68 crore in
the previous year. On a standalone basis, revenue from operations for FY 2025-26 stood at
I 41,039.48 crore registering a growth of 30.02%, as compared to I 31,563.23 crore in the
previous year. The standalone EBITDA is I 3,558.43 crore for FY 2025-26, which was I
2,856.58 crore in the previous year. The standalone PAT is I 348.39 crore for FY 2025-26,
which was I 212.10 crore in the previous year.
StrategicInitiativesand Developments
Paints Business (Birla Opus)
The Indian paints industry saw a disruptive year of
FY 2025-26. The leading competitors launched a slew of measures to
counter the rising competitive intensity. The industry also saw one large-scale
acquisition by another recent entrant in a bid to improve their presence.
The volatile geopolitical situation towards the end of the year led to
supply chain disruptions. The FY 2025-26, therefore can be termed as an inflexion year for
the decorative paints business - permanently changing the contours & dynamics of the
industry.
Birla Opus, the latest entrant to the decorative paints brand that
launched in FY 2024-25, has made significant strides in FY 2025-26. Birla Opus revenues
& volumes grew exponentially over 100% YoY in FY 2025-26 with more than 3% Revenue
Market Share improvement.
Birla Opus commercialised its Kharagpur plant in October 2025 and now
operates 6 plants with a total capacity of 1,332 Million Litres Per Annum (MLPA),
commanding ~24% of organised decorative paints industry capacity in India. As Kharagpur
plant commissioned, Birla Opus achieved its full scale first phase capacity completion.
All the six plants are backward integrated with in-house emulsions and resin manufacturing
capacity of 376.5 MLPA and 92.6 MLPA respectively capable of handling the entire paint
capacity and more.
Birla Opus's commitment to manufacturing excellence hit another
milestone with IMS certifications from M/S DNV. All six Birla Opus factories are ISO
certified across three areas of Quality Management System (ISO 9001), Environment
Management System (ISO 14001) and Safety Management System (ISO 45001).
Birla Opus manufacturing operations sustained its zero-fatality record
with no lost time injuries recorded in FY 2025-26. In addition to the Zero Liquid
Discharge (ZLD) operations, Birla Opus factories are now shifting to Green Energy (i.e.
Solar Power) with completion at Ludhiana, Panipat plants and others in various stages of
implementation The commissioning of the sixth factory also brought down the average
logistics cost by over 30%, unlocking the efficiency of the supply chain network. The
Company spent capex of I 550 crore during FY 2025-26 and project spends of cumulatively I
9,902 crore until FY 2025-26 signifying the completion of ‘one of its kind'
greenfield project at global scale on time and without any cost overrun.
Birla Opus R&D with 14 dedicated labs at Taloja supported by a
state-of-the-art pilot plant and a team of 100+ experienced scientists continue to be a
key driver of competitive differentiation, portfolio expansion, and cost leadership. Our
Research & Development also received IMS certification of Quality Management System
(ISO 9001) reflecting strong processes & systems.
During the year, Birla Opus added 40+ new products reaching 218 product
& 1,870+ SKUs portfolio across Exterior and Interior Emulsions, Waterproofing,
Textures & Designer Finishes, Enamels, Colorants, Wallpapers and Wood Finishes,
Stainers & Non-Mechanised Tools. The major category range addition
took place in a) In-house wallpapers b) Launch of Painting Tools under sub-brand
"Artist" c) Waterproofing products under sub-brand "AIIDry". The
innovation and chemistry led formulation engineering continues at R&D infrastructure
facility located at Aditya
Birla Science and Technology Centre (ABSTC) in Taloja, Navi Mumbai.
Birla Opus R&D operates a dedicated Product Life Cycle Management (PLCM) system
integrated with SAP, marketing, and manufacturing systems, ensuring disciplined New
Product Development (NPD) and Design Change Request (DCR) governance. All the products
undergo internal and third-party validation, with NABL-accredited certifications. The team
has filed four patent applications for critical differentiated technologies.
In a short period of less than 2 years, Birla Opus has set up pan India
distribution network of 50,000+ dealers and 146 depots servicing dealers in over 11,500
towns positioning Birla Opus' distribution as the 2nd largest in the industry. The
exciting 3-year dealer loyalty program known as "Signature Club" has garnered
excellent response with top performing dealers in FY 2025-26 winning trips to New Zealand,
South Korea, Vietnam and many more gifts. 'Birla Opus' unique tinting machine with
smallest footprint integrated digitally to the central software system, delivering 2,320+
colour shades including 216 iconic Indian shades, has been widely accepted by dealers.
This innovative tinting solution is generating high quality colour data analytics,
including diverse consumer preferences across various states of India, helping supply
chain and marketing teams cater to changing aspirations consumer aesthetic needs. The
depot network, powered by Extended Warehouse Management System (EWMS) & Transport
Management System (TMS), allows 4-hour delivery to dealers in depot town and next day
delivery in upcountry towns & villages. The separate institutional sales channel has
created a robust pipeline of 45,000+ sites across segments of Builders, Cooperative
Housing Societies (CHS), Government, Hospitals, Schools, Factories etc. and the list of
specification approvals with key departments is increasing on a quarter-on-quarter basis.
Birla Opus Studio and Birla Opus Paint Gallery continues to delight the consumers and is
transforming the decorative paints retailing industry across India. Birla Opus Paint
Gallery enhanced the consumer paint experience with the largest organised retail footprint
in the industry of
1,200+ franchised stores across 700+ towns. Birla Opus re-imagined the
Branded Painting Services model under PaintCraft brand name to offer GST compliant
services through its franchisee dealers & contractors ensuring highest quality of
service. The PaintCraft painting service is now available in 6,000+ pin codes.
Birla Opus redefined consumer painting experience offering superior
product quality and warranty. This year, the business introduced industry-first service
warranty through 'Opus Assurance' campaign. The Company estimates that over 6 million
households have applied and experienced Birla Opus products, with adoption of paint
products continuing to accelerate exponentially. Birla Opus has one of the largest active
contractor base of over 4 lakh active contractors connected via a mobile opp "BIRLA
OPUS ID" that allows accurate tracking of secondary sales. This coupled with our
"Track & Trace" capability allows Birla Opus to monitor and react to
changing market dynamics and take actions to help drive primary as well as secondary
sales. Birla Opus operates learning centres across 10 major metro cities and focuses on
upskilling lakhs of unorganised workforce of painters & contractors. The Architect
& Interior Designer (AID) partner network has now crossed 3,000 active firms across 60
cities becoming the second largest AlD network in the industry. The wide usage of Birla
Opus products in millions of households demonstrates the trust of brand, deep penetration
and level of product acceptance. Building on the successful brand awareness campaigns of
"Duniya ko Rang Do" and "Naye Zamane ka Naya Paint", Birla Opus became
the "Second Most 'Unaided Recall' and Top of Mind Brand" in Urban India basis
Brand Track study by appointed agency in FY 2025-26. Birla Opus advertised extensively in
country's most loved sport i.e., Cricket including T20 World cup & IPL 2026 season.
The new brand campaigns were promoted through multimedia including
diverse multi language TV channels
& popular digital media. These campaigns were supported with
on-ground activations and Birla Opus became the most visible brand as per on-ground
visibility measures basis internal assessment. Consumer & Influencer activation was
promoted through 'Expo on Wheels, Van Activations, Amantran events and other activation
programs that enabled direct connection with 1.3 lakh plus stakeholders in paints
ecosystem.
The core pillar of strength of Birla Opus is the young & diverse
team of over 5,500 on-roll employees. Birla Opus has inducted amongst the largest field
team of sales and service in paints industry to support all its key stakeholders -
dealers, contractors, painters, architects, and consumers. The entire Automated
Manufacturing production is operated by trained engineers or diploma holders a first in
the industry. Birla Opus team remain committed to become #2 profitable decorative brand in
every region across India as the brand drives towards its first vision of reachingI 10,000
annual crore revenue at the earliest.
B2B E-commerce (Birla Pivot)
India's next phase of growth will come not from creating more
marketplaces, but from transforming and streamlining B2B procurement. Birla Pivot aims to
address this gap by simplifying and integrating how businesses purchase, finance, and
receive raw materials, creating a more efficient and unified procurement experience across
fragmented industries.
Birla Pivot has emerged as a comprehensive B2B e-commerce platform
catering to building materials, metals, and industrial inputs. It serves as an integrated
procurement solution that brings together sourcing, pricing, financing, and delivery on a
single digital platform. Designed to address the complexities of B2B e-commerce, it
enables businesses to access a wide range of products, benefits from transparent pricing,
avail flexible credit, and track orders seamlessly, thereby making procurement more
efficient, reliable, and streamlined.
Over the last 3 years, Birla Pivot has served businesses across the
entire spectrum of India's construction and industrial economy EPC companies, civil
and MEP contractors, real estate developers, manufacturing entities, OEMs, retailers - and
delivered a B2C-like experience. We offer more than 50,000+ SKUs from 1,000+ brands,
aggregated and price-optimised across geographies. Every consignment tracked in real time.
Every seller, transporter, and delivery milestone connected on one platform.
Our core strength lies in our fully in-house technology platform,
designed to support every stage of the B2B commerce lifecycle. It comprises four
integrated modules: Pivot Edge for customer engagement, Pivot Grid for coordinated order
execution, Pivot Vault for embedded financing solutions, and Pivot XP for end-to-end
logistics management, enabling a seamless and efficient procurement experience.
Our diverse team combines deep industry expertise with cutting edge
technology and operates with the agility of a startup and the long-term vision of a large
conglomerate. Birla Pivot is one of the fastest growing company in India's B2B
e-commerce landscape. Building Materials, Chemicals, and Metals all contributed
meaningfully, and both Project and Retail customer segments scaled well. In FY 2025-26,
Birla Pivot saw a step-up in its technology capabilities, making the platform more
data-driven and intelligent. Pivot Edge delivers buyer-level insights for better
personalisation, while Pivot Vault's Early Warning System enables proactive credit
risk management. The business also achieved over 50% digitisation through WhatsApp and
self-serve channels.
Even as volumes and complexity increased, execution strengthened, with
improved OTIF and NPS across both project and retail segments.
Lyocell Project
The first phase (55 KTPA) of the Lyocell project at Harihar is
progressing as per plan, with commissioning expected by mid-2027. Detailed Engineering
activities have been substantially progressed and orders for major equipment have been
placed. Technical evaluation and procurement of balance project packages is progressing
well. The Civil, mechanical, electrical & instrumentation contracts have been
finalised and awarded. Civil work and foundation activities underway at site. The 220 KV
substation order is placed, and project execution activities have commenced. The Company
has initiated steps towards securing renewable power for the project. Overall, the project
is progressing well.
Aditya Birla Renewables Limited (ABRen) a. Composite Scheme of
Arrangement
During the year under review, the Board of Directors has approved a
Composite Scheme of Arrangement amongst Essel Mining & Industries Limited
(“EMIL”), an Aditya Birla Group Company, and Aditya Birla Renewables Limited
(“ABRen or Transferee Company”), a wholly owned subsidiary of the Company, and
the following subsidiaries of ABRen and EMIL, and their respective shareholders and
creditors (“Scheme”), as follows: i. transfer and vesting of the EMIL Renewable
Energy Undertaking from EMIL to the Transferee Company, as a going concern, on a slump
sale basis, without values being assigned to individual assets and liabilities, in
accordance with Section 2(42C) and other applicable provisions of the Income Tax Act,
1961. ii. amalgamation of Electrotherm Renewables Private Limited (“ERPL”), a
wholly owned subsidiary of EMIL, with the Transferee Company; and iii. amalgamation of
ABREL EPCCO Services Limited, ABREL Renewables EPC Limited, ABREL
EPC Limited, all wholly owned subsidiaries of the Transferee Company
(collectively "the EPC Companies") with the Transferee Company.
The above Scheme would create a consolidated renewable energy platform
along with ancillary services, under the Transferee Company to simplify the management and
operational structures of the
Companies and would increase efficiency by benefits of economies of
scale and synergies.
ABRen has received the ‘No Objection Letter' for the Scheme
from BSE Limited on 9th March 2026, and had filed application for approval of the Scheme
with the Hon'ble National Company Law Tribunal, Mumbai and Kolkata Bench ('NCLTs') in
March 2026. The Appointed Date of the Scheme is 1st April 2025, and the Scheme will be
effective post the approval of the Scheme by the NCLTs, and other regulatory and statutory
approvals, as applicable.
b. Investment by EMIL on private placement basis in Aditya Birla
Renewables Limited ("ABRen")
On 21st January, 2026, the Board of Directors of ABRen has allotted ~
49.26 crore fully paid-up equity shares through private placement on preferential basis to
Essel Mining & Industries Limited, (“EMIL”) an Aditya Birla Group Company,
aggregating to approx I500 crore. Consequent to this transaction, ABRen had ceased to be
wholly-owned subsidiary of the Company w.e.f. 21st January, 2026, however, the Company
continues to hold controlling stake in ABRen.
c. Investments/Acquisition of Stake in Aditya Birla Renewables Limited
(“ABRen”), by GIP EM Star Pte Limited (“GIP EM”)
During the year under review, the Board has approved investment by GIP
EM by way of one or more private placement on preferential basis, amounting to I 2,000
crore (Rupees Two Thousand crore) in various tranches into ABRen, vide a combination of
Compulsory Convertible Preference Shares and Equity Shares, subject to the terms and
conditions set out in the Securities Subscription Agreement and Shareholders' Agreement,
executed amongst the Company, ABRen and GIP EM.
GIP EM also has an option to invest an additional amount up to I 1,000
crore (Rupees One Thousand crore) in the form of equity shares, pro-rata to its
shareholding in ABRen, subject to the terms and conditions set out in the Shareholders'
Agreement. Further, on 15th April 2026, the first tranche of I 1,000 crore (Equity of I 10
crore and Compulsorily Convertible Preference Shares of I 990 crore) was received from GIP
EM, on completion of necessary compliances, and conditions precedents, as per agreements
signed.
Consolidated Financial Statements
In accordance with the provisions of the Companies Act, 2013 (‘the
Act'), read with the Companies (Accounts) Rules, 2014, Securities and Exchange Board
of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended
(‘Listing Regulations'/‘SEBI Listing Regulations') and Indian
Accounting Standards ('Ind AS') 110 Consolidated Financial Statements and Ind AS 28
Investments in Associates and Joint Ventures, the Audited
Consolidated Financial Statements forms integral part of this
Integrated Annual Report. Consolidated Financial
Statements include financial performance of the
Company's subsidiaries, Associates and Joint Ventures which inter
alia includes UltraTech Cement Limited, Aditya Birla Capital Limited, Aditya Birla
Renewables
Limited and other entities as mentioned in the Notes to the
Consolidated Financial Statements.
Subsidiaries, Associates and Joint Venture Companies
During the period under review: x Consequent to Essel Mining &
Industries Limited infusing approx I 500 crore on private placement basis in Aditya Birla
Renewables Limited (ABRen), a wholly owned subsidiary ('WoS') of the Company, the stake of
the Company in ABRen was reduced from 100% to 70.57%. x The status of Aditya Birla
Renewables SPV 3 Limited (ABRen SPV 3) a WoS of ABRen changed from WoS to Subsidiary
pursuant to transfer of 26% of its shares to Vodafone Idea Limited on 20th October 2025.
During the year under review, Aditya Birla Idea Payments Bank Limited, a subsidiary of the
Company, was dissolved, pursuant to the order of Hon'ble Bombay High Court dated 12th
June 2025.
Further, the Company has acquired / agreed to acquire equity stakes in
the following Special Purpose Vehicles ("SPVs"), formed as Captive Users for
renewable energy projects: i. For Vilayat Plant, Gujarat: Investment in the SPV with
Prozeal Green Energy Limited, namely Pro-Zeal Green Power Eighteen Private Limited,
incorporated on 19th September 2025, in which the Company is holding 26% equity stake. ii.
For Balabhadrapuram Plant, Andhra Pradesh: Investment in the SPV with Prozeal Green Energy
Limited, namely Pro-Zeal Green Power Nineteen
Private Limited, incorporated on 24th September 2025, in which the
Company is holding 26% equity stake. iii. For Ganjam Plant, Odisha: Investment in the SPV
with GMR Energy Limited, namely GMR Kalinga Solar Power Limited, incorporated on 22nd
November 2025, in which the Company has agreed to acquire 29% equity stake. During the
year under review, 4 Limited Liability Partnerships (LLPs) i.e. Renukeshwar Estates LLP,
Mangalyaan Estates LLP, Shambhavnath Estates LLP and Chandanprabhu Estates LLP were
incorporated by the Company. Except above, there were no other changes in the direct
Subsidiaries, Associates and Joint Venture Companies of the Company during the year.
In accordance with the provisions of Section 129(3) of the Act, read
with the Companies (Accounts) Rules, 2014, a report on the performance and financial
position of each of the Subsidiaries, Associates and Joint Venture Companies is provided,
in the prescribed Form AOC-1, in Annexure ‘A' to this Report.
In accordance with the provisions of Section 136 of the Act, the
Audited Standalone and Consolidated Financial
Statements and related information of the Company and audited accounts
of each of its subsidiaries are available on the website of the Company at
https://www.grasim. com/investors/results-reports-and-presentations
UltraTech Cement Limited and Aditya Birla Capital Limited are the
material listed Subsidiary Companies of the Company. Our Company does not have any
material unlisted Subsidiary. The Audit Committee and the Board review the financial
statements, significant transactions of all Subsidiary Companies, and the minutes of
unlisted Subsidiary Companies are placed before the Board.
Our Company has adopted the Policy for determining material
subsidiaries in accordance with the Listing Regulations. The said Policy is available on
the Company's website at https://www.grasim.com/upload/pdf/Grasim_
Policy_Material_Subsidiary_Cos.pdf
UltraTech Cement Limited (‘UltraTech')
UltraTech is the top-tier manufacturer of grey cement and ready-mix
concrete (RMC), and one of the largest manufacturers of white cement in India. UltraTech
operates 34 integrated manufacturing units, 34 grinding units, 1 clinkerisation unit and
10 bulk packaging terminals. It also has 465 RMC plants across 167 cities. UltraTech has
two white cement units and four wall care putty units. As on 31st March 2026,
UltraTech's grey cement capacity in India stood at 191.4 MTPA, reflecting an addition
of 8.0 MTPA capacity. Its operations are backed by a robust logistics network that
dispatches approximately 75% by road, 23% by rail and balance by sea, servicing a wide
distribution network of more than 1,50,000 channel partners across India. In April 2026,
UltraTech's overall capacity (India + Overseas) stood at 205.5 MTPA. For FY 2025-26,
consolidated sales volumes grew 8.6% YoY to 154.25 MMT, with capacity utilisation at 77%.
RMC sales volumes grew 23% YoY to 16.44 million cubic meters. The share of green power
(WHRS + renewables) in total power consumption was 41.6%. Consolidated revenue grew 16.5%
YoY to I 88,512 crore. EBITDA grew 32.3% YoY to I 17,598 crore, while PAT grew 35.6% YoY
to I 8,188 crore. Operating cash flow stood atI 15,316 crore.
Aditya Birla Capital Limited (‘ABCL')
Key Highlights of ABCL's Consolidated Performance for the
financial year ended 31st March 2026 are as under: Consolidated Revenue: I 45,427 crore
(grew 12 % YoY) Consolidated Net Profit: I 3,635 crore (grew 22 % YoY) Overall, AUM across
asset management, life insurance and health insurance at over I 5.91 lakh crore (grew 16 %
YoY) Overall lending book (NBFC and Housing Finance) at I 2.07 lakh crore (grew 32 % YoY)
Gross premium (across Life and Health Insurance) at I 31,634 crore (grew 24 % YoY)
Share Capital
The Authorised Share Capital of the Company stood at
I 423.50 crore, comprising 2,06,25,00,000 Equity Shares of I 2/- each
and 11,00,000 Redeemable Cumulative Preference Shares of I 100/- each as at 31st March
2026.
Issued Share Capital of the Company stood at I 136.12 crore, comprising
68,05,83,601 Equity Shares of Face Value I 2/- each as at 31st March 2026.
Subscribed and paid up capital of the Company stood at I 136.11 crore,
comprising 68,05,80,576 Equity Shares as at 31st March 2026.
Issue of Equity Shares on Rights Basis
In the FY 2024-25, the Board of Directors made two calls in respect of
outstanding partly-paid up Equity Shares of the Company: x First Call: I 453/- per
partly paid Equity Shares (comprising I 0.50 towards face value and I 452.50 towards
securities premium), payable during the period from 4th July 2024 to 18th July 2024, both
days inclusive; and x Second and Final Call: I 906/- per partly paid Equity Share
(comprising I 1/- towards face value and I 905/- towards securities premium), payable
during the period from 6th January 2025 to 20th January 2025, both days inclusive.
In the FY 2025-26, the Company sent reminder letters to shareholders
from whom the First Call and/or Second Call monies are pending and have issued shares
based on the receipt of the call monies. The call monies received by the Company have been
utilised for the objects stated in the Letter of Offer, towards repayment of certain
borrowings of the Company and general corporate purposes.
Employee Stock Option Scheme and Purchase of Treasury Shares
During the year, Grasim Employees' Welfare Trust (Trust) acquired
7,03,138 Equity Shares of the Company from the secondary market. As per Ind AS, purchase
of own equity shares are treated as treasury shares. The Trust, constituted in terms of
the Company's Employee Stock Option Schemes ('ESOS'), holds 23,27,819 Equity Shares
of the Company as on 31st March 2026 for transfer to the eligible employees under
ESOS-2018 and ESOS-2022. The ESOS-2018 and ESOS-2022 are being administered through the
Trust.
ESOS-2018
During the year, 3,72,498 Equity Shares were transferred from the
Trust's demat account to the employees account due to exercise of Stock Options and
Restricted Stock Units ('RSUs') by the grantees under ESOS-2018.
ESOS-2022
During the year, the Nomination and Remuneration Committee
(‘NRC') of the Board approved grant of 5,81,072 Stock Options and 1,60,874
Performance Stock Units (‘PSUs') to the eligible employees, including the
Managing Director of the Company, under ESOS-2022. During the year, 68,164 Equity Shares
were transferred from the Trust's demat account to the employees account due to exercise
of Stock Options and PSUs by the grantees under ESOS-2022.
The details of Stock Options and RSUs granted pursuant to ESOS-2018 and
Stock Options and PSUs granted pursuant to ESOS-2022, and the other disclosures in
compliance with the provisions of the Securities and Exchange Board of India (Share Based
Employee Benefits and Sweat Equity) Regulations, 2021, are available on your
Company's website at: https://www.grasim.com/Upload/PDF/esos-disclosures-2025-26.pdf
A certificate from the Secretarial Auditor with respect to implementation of your
Company's ESOS will be available at the ensuing AGM for inspection by the Members.
Deposits
During the year, our Company has not accepted or renewed any deposits
within the meaning of Section 73 of the Act, read with the Companies (Acceptance of
Deposits) Rules, 2014.
Issue of Non-Convertible Debentures (NCDs)
During the year, our Company has issued the following NCDs on private
placement basis, which are listed on BSE Limited:
| Particulars - NCDs |
Face Value |
Amount |
Coupon rate |
Maturity Date |
| 1,00,000 Fully Paid, |
I 1,00,000 |
I 1,000 |
6.56% |
6th June |
| Unsecured, Listed, |
each |
crore |
|
2030 |
| Rated, Redeemable, |
|
|
|
|
| Rupee Denominated, |
|
|
|
|
| NCDs |
|
|
|
|
During the year, no NCDs were due for redemption.
Particulars of Loans, Guarantees and Investments
Pursuant to Section 186 of the Act, read with the Companies (Meetings
of the Board and Its Powers) Rules, 2014, disclosures relating to loans and investments as
on 31st March 2026 are given in the Notes to the Financial Statements. During the year,
there are no guarantees issued or securities provided by the Company, in terms of Section
186 of the Act, read with the Rules issued thereunder.
Management Discussion and Analysis
Management Discussion and Analysis for the year, as stipulated under
the Listing Regulations, is presented in a separate section and forms an integral part of
this
Integrated Annual Report.
Corporate Governance
Your Directors re-the best practices of Corporate Governance. Corporate
Governance principles forms an integral part of the core values of the
Company. Our Company is in compliance with the provisions relating to Corporate
Governance. The Report on Corporate Governance for the year, as stipulated under
Regulation 34 of the Listing Regulations, is presented in a separate section, and forms an
integral part of this Integrated Annual Report. A certificate from the Statutory Auditors
on its compliance is given in
Annexure ‘B' to this Report.
Directors and Key Managerial Personnel
Appointment/Re-appointment of Directors
In accordance with the provisions of the Act and the Articles of
Association of the Company, Mr. Kumar Mangalam Birla and Mr. Sushil Agarwal,
Non-Executive, Non-independent Director of our Company, are liable to retire by rotation
at the ensuing Annual General Meeting (‘AGM').
Mr. Kumar Mangalam Birla and Mr. Sushil Agarwal, being eligible, have
offered themselves for re-appointment at the ensuing AGM.
Brief profiles of Mr. Kumar Mangalam Birla and Mr. Sushil Agarwal are
provided in the Report on Corporate Governance and Notice of AGM.
The Board of Directors at its meeting held on 10th February 2025, based
on recommendation of Nomination and Remuneration Committee ('NRC') and subject to the
approval of Members of the Company, had approved the appointment of Mr. Himanshu Kapania
(DIN: 03387441) as an Additional Director, Managing Director (‘MD') and Key
Managerial Personnel (‘KMP') of the Company, not liable to retire by rotation,
with effect from 1st April 2025 up to 30th April 2028.
Subsequently, the Members of the Company, by way of Postal Ballot held
on 26th June 2025 approved the above appointment of Mr. Himanshu Kapania as MD and KMP of
the Company.
During the year, the Board of Directors at its meeting held on 10th
February 2026, based on the recommendation of NRC has re-appointed Mr. V. Chandrasekaran
(DIN: 03126243) and Mr. Adesh Kumar Gupta (DIN: 00020403) as
Independent Directors of the Company for a second term of 5 (five)
consecutive years with effect from24 th May 2026 up to 23rd May 2031, in accordance with
the provisions of the Act and SEBI Listing Regulations, subject to the approval of the
Members of the Company.
Subsequently, the Members of the Company by way of Postal Ballot held
on 27th March 2026, approved the above re-appointments of Mr. V. Chandrasekaran and Mr.
Adesh Kumar Gupta, as Independent Directors of the Company. There is no pecuniary or
business relationship between the Non-Executive Directors and the Company, except for the
sitting fees and commission payable to the Non-Executive Directors, in accordance with the
applicable laws and approval of the Members of the Company.
Key Managerial Personnel
Pursuant to the provisions of Sections 2(51) and 203 of the Act, Mr.
Himanshu Kapania, Managing Director, Mr. Hemant Kumar Kadel, Chief Financial Officer (CFO)
and Mr. Neelabja Chakrabarty, Company Secretary are the Key Managerial Personnel
(‘KMP') of the Company as on 31st March 2026. Consequent to the superannuation
of Mr. Pavan Kumar Jain, CFO and KMP, with effect from 15 th August 2025, and based on the
recommendations of the NRC and the Audit Committee, the Board of Directors, at its meeting
held on 22nd May 2025, approved the appointment of Mr. Hemant Kumar Kadel as CFO and KMP
of the Company, with effect from 16th August 2025.
Further, Mr. Sailesh Kumar Daga, Company Secretary and Compliance
Officer of the Company, has tendered his resignation to pursue opportunities outside the
Company with effect from the close of business hours of 15th July 2025.
Consequent to the same and based on the recommendation of the NRC, the Board of Directors,
at its meeting held on 8th August 2025, approved the appointment of Mr. Neelabja
Chakrabarty as Company Secretary and Compliance Officer and KMP of the Company, with
effect from 1st October 2025.
The Board of Directors placed on record its deep appreciation for
significant contribution made by Mr. Pavan Kumar Jain as CFO and Mr. Sailesh Kumar Daga as
Company Secretary and Compliance Officer of the Company during their respective tenures.
Meetings of the Board
The Board of the Company met 7 (seven) times during the year to
deliberate on various matters. The meetings were held on 22nd May 2025, 8th August 2025,
5th November 2025, 9th December 2025, 29th December 2025, 16th January 2026 and 10th
February 2026. Further details are provided in the Report on Corporate Governance, which
forms an integral part of this Integrated Annual Report.
Statutory Committees of the Board
Audit Committee
The Audit Committee comprises of Mr. N. Mohan Raj, Chairman, Mr. V.
Chandrasekaran, Mr. Yazdi Piroj Dandiwala and Mr. Himanshu Kapania as its members. Three
out of four members, including Chairman of Audit Committee are Independent Directors. The
Chief Financial Officer of your Company is a permanent invitee at the Audit Committee
Meetings.
Nomination and Remuneration Committee
The Nomination and Remuneration Committee (‘NRC') comprises
of Ms. Anita Ramachandran, Chairperson, Mr. Kumar Mangalam Birla, Mr. Haigreve Khaitan and
Mr. Adesh Kumar Gupta as its members. Three out of four members, including Chairperson of
NRC, are Independent Directors.
Corporate Social Responsibility
Committee
The Corporate Social Responsibility (‘CSR') Committee
comprises of Smt. Rajashree Birla, Chairperson, Ms. Anita Ramachandran and Mr. Himanshu
Kapania as its members.
Stakeholders' Relationship Committee
The Stakeholders' Relationship Committee (‘SRC')
comprises of Ms. Anita Ramachandran, Chairperson, Mr. Yazdi Piroj Dandiwala and Mr.
Himanshu Kapania as its members. Majority of the members, including Chairperson of SRC,
are Independent Directors.
Risk Management and Sustainability Committee
The Risk Management and Sustainability Committee (‘RMSC')
comprises of Mr. N. Mohan Raj, Chairman, Mr. Ashvin Parekh, Mr. V. Chandrasekaran, Mr.
Himanshu Kapania, Mr. Jayant V. Dhobley, Business Head, CFI and Mr. Kapil Agrawal,
Business Head, Textiles, as its members. The Chief Financial Officer and Chief
Sustainability Officer of our Company are permanent invitees at the RMSC
Meetings.
All the recommendations made by the above Committees, during the year,
were accepted by the Board of the Company.
Further details relating to the above Committees are provided in the
Report on Corporate Governance, which forms an integral part of this Integrated Annual
Report.
Independent Directors
Our Company has received declarations from all the
Independent Directors of the Company, confirming that: a) they meet the
criteria of independence as prescribed under Section 149(6) of the Act and Regulation
16(1) (b) of the Listing Regulations; b) they are not aware of any circumstance or
situation which exists or may be reasonably anticipated, that could impair or impact their
ability to discharge their duties with an objective of independent judgement and without
any external influence; and c) they have registered their names in the Independent
Directors Databank.
Our Company's Board is of the opinion that the Independent
Directors possess requisite qualifications, experience and expertise in Corporate
Governance, Legal and Compliance, Financial Literacy, General Management, Human Resource
Development, Industry Knowledge, Technology, Digitisation and Innovation, Marketing, Risk
Management, Strategic Expertise and Sustainability, and they hold highest standards of
integrity.
Formal Annual Evaluation
Pursuant to the provisions of the Act and the Listing
Regulations, the Board has carried out an annual evaluation of its own
performance, its Committees, Independent Directors, Non-Executive Directors, Executive
Director and the Chairman of the Board. The NRC of the Board has laid down the manner in
which annual evaluation of the performance of the Board, its Committees and Individual
Directors have to be made.
It includes circulation of evaluation forms separately for evaluation
of the Board and its Committees, Independent Directors/Non-Executive Directors/Executive
Director and the Chairman of the Company.
The performance of Non-Independent Directors, the Board, as a whole,
and the Committees of the Board have been evaluated by Independent Directors in a separate
meeting. At the same meeting, the Independent Directors also evaluated the performance of
the Chairman of the
Company, after taking into account the views of Executive Director and
Non-Executive Directors. Evaluation as done by the Independent Directors was submitted to
the NRC and subsequently to the Board.
Thereafter, the Board at its meeting discussed the performance of the
Board, as a whole, its Committees and Individual Directors. The Board expressed
satisfaction with the overall functioning of the Board and its Committees. The Board was
also satisfied with the contribution of the Directors, in their respective capacities,
which reflected the overall engagement of the Individual Directors.
The new Director inducted on the Company's Board attends an
orientation programme. The details of the programme for familiarisation of Independent
Directors are provided in the Report on Corporate Governance, which forms an integral part
of this Integrated Annual
Report and is also available on the Company's website at
https://www.grasim.com/Upload/PDF/familiarisation-programme-independent-directors.pdf
Directors' Responsibility Statement
The audited accounts for the year are in conformity with the
requirements of the Act and the Accounting Standards.
The financial statements reflect fairly the form and substance of
transactions carried out during the year and reasonably present your Company's
financial condition and results of its operations.
Pursuant to Section 134(5) of the Act, the Board of Directors, to the
best of their knowledge and ability, confirms that: a) in the preparation of the Annual
Accounts, the applicable accounting standards have been followed along with proper
explanation relating to material departures, if any; b) the accounting policies selected
have been applied consistently, and judgements and estimates are made that are reasonable
and prudent, so as to give a true and fair view of the state of affairs of the Company as
at 31st March 2026, and of the profit of the Company for the year ended on that date; c)
proper and sufficient care have been taken for the maintenance of adequate accounting
records, in accordance with the provisions of the Act, for safeguarding the assets of the
Company and for preventing and detecting fraud and other irregularities; d) annual
accounts have been prepared on a ‘going concern' basis; e) the Directors have
laid down proper internal financial controls, and that such internal financial controls
are adequate and were operating effectively; and f) the Directors have devised proper
systems to ensure compliance with the provisions of all applicable laws and that such
systems were adequate and operating effectively.
Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo
The information on Conservation of Energy, Technology Absorption and
Foreign Exchange Earnings and Outgo stipulated under Section 134(3)(m) of the Act, read
with the Companies (Accounts) Rules, 2014, is given in Annexure ‘C' to
this Report.
Integrated Annual Report
The Company is publishing its seventh Integrated Annual Report for FY
2025-26. This report is prepared in alignment with the Integrated Reporting Framework laid
down by the
International Integrated Reporting Council and aims to present the
value creation approach for our stakeholders.
Auditors and Audit Reports
Statutory Auditors
M/s. B S R & Co. LLP, Chartered Accountants (Registration No.
101248W/W-100022) ('BSR') and M/s. KKC & Associates LLP, Chartered Accountants
(Registration No. 105146W/ W100621), were appointed as Joint Statutory Auditors of the
Company for a term of 5 (five) consecutive years, to hold office till the conclusion of
the 79 th AGM and 80th AGM of the Company, respectively.
The second term of BSR is up to the conclusion of the ensuing 79th AGM
of the Company. The Board of Directors has at its meeting held on 20th May 2026, based on
the recommendation of the Audit Committee, approved the appointment of M/s Deloitte
Haskins & Sells Chartered Accountants LLP, (Registration Number: 117364W/ W100739)
('Deloitte') as one of the Joint Statutory Auditor of the Company in place of BSR, to hold
office from the conclusion of the ensuing AGM until the conclusion of the
84th AGM, subject to approval of the Members. Resolution seeking
approval of the members on this item is included in the Notice convening the AGM. Both
Deloitte and KKC have confirmed that they are not disqualified to act/ continue as
Auditors, and are eligible to hold office as Statutory Auditors of your Company.
The observations made by the Joint Statutory Auditors on the Financial
Statements (Standalone and Consolidated) of the Company, in their Report for the financial
year ended 31st March 2026, read with the Notes therein, are self-explanatory and,
therefore, do not call for any further explanation or comments from the Board of Directors
under Section 134(3)(f) of the Act. The Auditors' Report does not contain any
qualification, reservation, disclaimer or adverse remark.
Cost Auditor
Our Company is required to prepare and maintain the cost accounts and
cost records pursuant to Section 148(1) of the Act, read with rules made thereunder.
Based on the recommendation of the Audit Committee, the Board of
Directors, at its meeting held on 20th May 2026, approved the appointed of M/s. D. C. Dave
& Co., Cost Accountants, Mumbai (Registration No. 000611), as the Cost Auditors to
conduct the cost audit of the
Company for the FY 2026-27 at a remuneration of I 28 lakh (Rupees
Twenty Eight lakh only) plus applicable taxes and reimbursement of out-of-pocket expenses.
The Company has received the consent from
M/s. D. C. Dave & Co., Cost Accountants, to act as the Cost Auditor
of our Company for the FY 2026-27, along with the certificate confirming their
eligibility. In accordance with the provisions of Section 148(1) of the Act and Rule 14 of
the Companies (Audit and Auditors) Rules, 2014, the remuneration payable to the Cost
Auditor is required to be ratified by the Members of the Company Accordingly, an Ordinary
Resolution, for ratification of remuneration payable to the Cost Auditor for the FY
2026-27, forms part of the Notice of the ensuing AGM.
Secretarial Auditor
M/s. Makarand M. Joshi & Co., Company Secretaries (Firm
Registration Number - P2009MH007000), Mumbai, was appointed as the Secretarial Auditor of
the Company to hold office for a first term of five consecutive from FY 2025-26 till FY
2029-30 of the Company. The said appointment was approved by the shareholders at the last
AGM of the Company.
They have confirmed their eligibility and qualification required under
the Act for holding the office, as Secretarial Auditor of the Company.
The Secretarial Audit Report, issued by M/s. Makarand M. Joshi &
Co., Company Secretaries, for the FY 2025-26, is given in Annexure ‘D' to
this Report. The Secretarial Audit Report does not contain any qualification, reservation,
disclaimer or adverse remark. Pursuant to the requirement of Regulation 24A of the Listing
Regulations, the Secretarial Compliance Report for the financial year ended 31 st March
2026, in relation to the compliance of all applicable SEBI
Regulations/circulars/guidelines issued thereunder, is available on the website of the
Company at https://
www.grasim.com/Upload/PDF/annual-secretarial-compliance-report-q4fy26-20052026.pdf.
Secretarial Standards
During the year, our Company is in compliance with the applicable
Secretarial Standards specified by the Institute of Company Secretaries of India.
Reporting of Frauds by Auditors
No instances of fraud were reported by the Auditors of the Company
under Section 143(12) of the Act.
Disclosures
Contracts and Arrangements with
Related Parties
During the year, all contracts/arrangements/transactions entered by the
Company with Related Parties were on arm's length basis and in the ordinary course of
business.
There are no material transactions with any Related Party as defined
under Section 188 of the Act, read with the Companies (Meetings of Board and its Powers)
Rules, 2014. . In line with the requirements of the Act and the Listing Regulations, all
Related Party Transactions have been approved by the Audit Committee and reviewed by it on
a periodic basis. Our Company has formulated a ‘Policy on Related Party
Transactions', which is available on the Company's website at
https://www.grasim.com/upload/ pdf/Grasim_policy_on_RPT.pdf. The Policy intends to ensure
that proper reporting, approval and disclosure processes are in place for all transactions
between the Company and Related Parties.
The details of contracts and arrangements with Related
Parties of the Company for the financial year ended 31st March 2026,
are given in Notes to the Standalone Financial Statements, forming part of this Integrated
Annual Report.
The Board at its meeting held on 22 nd May 2025, has approved entering
into material Related Party
Transaction(s) in terms of the Listing Regulations with i) Hindalco
Industries Limited, a promoter group Company for an aggregate value of up to I2,535 crore;
and ii) AV Group NB Inc, Canada (‘AVNB'), Joint Venture of the Company for an
aggregate value of up to I 1,300 crore for the
FY 2025-26. Subsequently, the members of the Company, by way of postal
ballot on 26th June 2025, approved both the material related party transactions.
Vigil Mechanism/Whistle-Blower Policy
Our Company has established a mechanism for directors and employees to
report instances and concerns about unethical behaviour, actual or suspected fraud, or
violation of the Company's Code of Conduct. It also provides adequate safeguards
against the victimisation of employees, who avail the mechanism and allows direct access
to the Chairman of the Audit Committee in exceptional cases. During the year, no person
was denied access to the Audit Committee.
The details of the Vigil Mechanism are also provided in the Report on
Corporate Governance, which forms an integral part of this Integrated Annual Report and
the
Vigil Mechanism/Whistle-Blower Policy is available on the website of
the Company at https://www.grasim.com/ Upload/PDF/whistle-blower-policy.pdf
Corporate Social Responsibility
In terms of the provisions of Section 135 of the Act and Rules made
thereunder, the Board has a Corporate Social Responsibility ('CSR') Committee, which is
chaired by Smt. Rajashree Birla. The other Members of the Committee are Ms. Anita
Ramachandran, Independent Director and Mr. Himanshu Kapania, Managing Director. Dr.
Pragnya Ram, Group Executive President CSR is a permanent invitee to the Committee. The
Corporate Social Responsibility Policy (‘CSR Policy'), indicating the activities
undertaken by the Company, is available on your Company's website
https://www.grasim.com/Upload/ PDF/grasim-csr-policy.pdf Our Company is a caring corporate
citizen, and lays significant emphasis on development of the host communities around which
it operates. Our Company, with this intent, has identified several projects relating to
Social Empowerment and Welfare, Rural Development, Sustainable Livelihood, Health Care and
Education, during the year, and initiated various activities in neighbouring villages
around its plant locations.
During the year, the Company has spent I 73.35 crore, of which I 53.89
crore was spent towards Committed CSR Projects of the Company, and an amount of I 19.46
crore was voluntarily spent for CSR activities.
The initiatives undertaken by the Company on CSR activities, during the
year, are given in Annexure ‘E' to this Report, in the format prescribed
in the Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended.
Risk Management and Sustainability
Our Company remains firmly committed to a comprehensive and forward
looking approach to risk management and sustainability, recognising them as essential
enablers for long-term value creation and achievement of organisational objectives. In an
increasingly dynamic business environment, our robust risk management framework
facilitates the identification, assessment, mitigation, and continuous monitoring of
diverse risks across the organisation. This approach not only safeguards our interests,
but also allows us to proactively seize emerging opportunities.
The Board level Risk Management and Sustainability Committee (RMSC)
plays a pivotal role in embedding risk management into the core of strategic and
operational decision making. The Committee is entrusted with framing relevant policies,
monitoring their implementation, and reviewing the Company's risk and sustainability
performance to ensure alignment with our long-term vision. Our Risk Management Policy is
available on the Company's website at https://www.grasim.com/
Upload/PDF/risk-management-policy.pdf serves as the cornerstone for guiding these efforts.
We have systematically identified and assessed a wide range of risk
areas including external, strategic, financial, operational, sustainability, cyber
security, compliance, and knowledge based risks. Our risk informed decision making culture
empowers us to take timely and well considered actions, enabling the Company to adapt
quickly to change while ensuring business continuity and stakeholder confidence. Tailored
mitigation strategies have been implemented for each risk category to strengthen our
operational resilience.
The Management Discussion and Analysis section of this Report outlines
the key risks identified and the corresponding mitigation plans. During the financial
year, the RMSC met three times to review the effectiveness of our risk management and
sustainability practices. The Board remains confident in the Company's ability to
navigate uncertainties, achieve strategic objectives, and generate sustainable value.
Importantly, there are no risks currently identified that, in the opinion of the Board,
pose a threat to the Company's continued existence.
Sustainability
We continue to place sustainability at the core of our strategy,
recognising it as a key driver of long-term value, resilience and responsible growth. In
the FY 2025-26, ESG considerations were further accelerated into business planning,
capital allocation and operations, aligned with the Aditya Birla Group's Net Zero
roadmap and robust governance, transparent disclosures and alignment with leading global
and national frameworks. The RMSC reviewed enterprise risks and sustainability priorities,
covering areas such as decarbonisation, renewable energy, resource efficiency, water
stewardship, circularity and cyber security, while also tracking emerging opportunities
from evolving regulations, technology and customer expectations, enabling risk-informed
and resilient decision-making.
The Company advanced its climate agenda through targeted investments in
cleaner technologies, process optimisation and energy efficiency improvements, leading to
a substantial increase in renewable power share to 24% (up from 11% in FY 2024-25). Water
stewardship efforts were further strengthened, with up to 53% of total water consumption
met through recycled water, reflecting a strong push towards conservation, reuse and
reduced dependence on freshwater resources. These initiatives were complemented by
continued focus on waste minimisation, circular economy practices and responsible
sourcing. At the same time, sustained emphasis on employee safety, ethical conduct,
responsible supply chains and community development reinforced the social and governance
pillars of sustainability. Overall, the Company's sustainability framework remains robust
and confident in navigating uncertainties while delivering sustainable long-term value to
all stakeholders.
Business Responsibility and Sustainability
Report
As per Regulation 34(2)(f) of the Listing Regulations, a separate
section on Business Responsibility and Sustainability Report, describing the initiatives
taken by the Company from environmental, social and governance perspective, forms an
integral part of this Integrated Annual Report.
Annual Return
Pursuant to Sections 92 and 134 of the Act, and the Rules made
thereunder, the Annual Return of your Company as on 31st March 2026 is available on the
Company's website at
https://www.grasim.com/Upload/PDF/form-mgt-7-annual-return-fy-2025-2026.pdf.
Internal Controls
Our Company has in place adequate internal control systems (including
internal financial control system) commensurate with the size and complexity of its
operations. Internal control systems comprising of policies and procedures are designed to
ensure sound management of the Company's operations, safe keeping of its assets,
optimal utilisation of resources, reliability of its financial information and compliance.
Systems and procedures are periodically reviewed to keep pace with the
growing size and complexity of the Company's operations. During the year, no material
or serious observation has been received from the Joint Statutory Auditors of your
Company, citing or inadequacy of such controls.
Remuneration Policy
The Company's remuneration policy is directed towards rewarding
the performance based on review of achievements. The remuneration policy is in consonance
with the existing industry practice. There has been no change in the policy during the
year.
The Remuneration Policy of the Company, as formulated by the NRC of the
Board is given in Annexure ‘F' to this Report and is also available on
the Company's website at
https://www.grasim.com/upload/pdf/ABG-executive-remuneration-philosophy-policy.pdf
Research and Development (R&D)
The R&D projects undertaken by the Company focus on developing and
commercialising differentiated premium/ new products, improving our competitive cost
position, product quality and environmental sustainability. To support these goals, the
Company develops a pipeline of projects to address near and mid-term needs, as well as the
exploration of future opportunities.
Business-wise details are described hereunder:
Cellulosic Staple Fibre (CSF)
The CSF business continued to execute with clarity and conviction,
anchored in its long-term vision of global leadership in sustainable man-made cellulosic
fibres. Sustainability, circularity and traceability have become defining requirements,
shaped by evolving regulations, brand commitments and increasingly conscious consumer
preferences. At the same time, trade patterns are shifting due to localisation, new trade
blocs and geopolitical realignments-creating both complexity and opportunity for fibre
producers with scale, resilience and clarity. Sustainability has evolved from a licence to
operate into a core driver of growth and differentiation. Our Cellulosic Fibre business,
Birla Cellulose retained the highest global sustainability rating from Canopy for the
sixth consecutive year, reflecting consistent performance in responsible sourcing,
traceability and environmental stewardship. Beyond recognition, sustainability is
translating into tangible commercial advantage - strengthening customer trust, deepening
brand partnerships and improving access to global markets as ESG-aligned sourcing becomes
central to brand strategies.
Our CSF business continues to provide a strong and resilient foundation
through scale, cash generation, cost discipline and quality leadership. This robustness
enables investment opportunities in future-ready fibre platforms. Against the backdrop of
stagnating cotton availability due to land, water and climate constraints, Lyocell is
emerging as the most credible and scalable solution to bridge the widening cellulosic gap.
Its closed-loop process and strong alignment with sustainability, position it as a fibre
of the future. The leading European and global brands increasingly view Lyocell as
integral to long-term sourcing strategies.
In line with this conviction, we continue to invest in Lyocell
capacity, technology and R&D. The first phase of the Lyocell project at Harihar is
progressing in line with plan, with engineering, procurement and site execution advancing
steadily reinforcing confidence in disciplined project execution and timely ramp-up.
The operating environment remained challenging through the year, with
intensified competition and external volatility. In response, the CSF business remained
sharply focused on controllable levers-tightening consumption norms, improving asset
reliability, strengthening power-plant reliability and enhancing process discipline. At
the same time, the Company continues to engage constructively with policymakers and
industry stakeholders for creating level playing field for Domestic Industry vs. imports
by supporting frameworks that recognise sustainability, compliance and long-term value
creation, while competing primarily through internal strengths. Sustained investment in
R&D - across both operating and capital expenditure-remains a defining strength.
R&D efforts span new fibre solutions, premium and specialty offerings, process
innovation, digital manufacturing and sustainability-led differentiation. Investments in
pilot facilities, advanced modelling, specialised equipment and in-house engineering
capabilities are accelerating scale-up and improving reliability. Partnerships with global
technology providers, brands and downstream players ensure innovation remains closely
aligned with customer needs and regulatory trends. As global textiles move decisively
toward sustainability, circularity and traceability, the CSF business is well positioned
to lead. With expansion in Lyocell, sustained focus on operating efficiencies and
R&D-led differentiation, Cellulosic Fibres remains a key pillar of growth.
Cellulosic Fashion Yarn (CFY)
The Cellulosic Fashion Yarn (CFY) business continues its purposeful
journey toward excellence by integrating innovation, sustainability, and operational
resilience at every stage of its value chain. With a strong foundation in responsible
manufacturing and an unwavering focus on customer expectations, CFY is shaping the future
of fashion yarn through advanced materials, transparent value chains, and world class
safety and environmental practices.
At the heart of CFY's innovation agenda is the development of
closed-loop Lyocell Filament Yarn (LFY) technology, undertaken in partnership with a
leading European technology provider. Following a successful lab scale proof of concept,
the pilot phase is now focused on scale up, performance optimisation, and yarn sample
development for customer validation—laying the foundation for future
commercialisation. Alongside this, CFY has introduced cutting edge yarn solutions such as
high DPF, low DPF microfilaments, and dull-with-tracer yarns that enhance fabric
aesthetics, performance, and supply chain traceability.
A breakthrough in product responsibility, the Raysileco brand
integrates both molecular and digital traceability directly within the yarn, enabling
end-to-end tracking across the textile value chain. This empowers brands and consumers
with unprecedented visibility, transparency, and trust in the origins and journey of the
product they use. Sustainability remains a core differentiator for CFY. The RaysilR
portfolio is backed by globally recognised certifications including FSC-COC, Canopy
“Green Shirt,” Higg Index, LCA, ZDHC MMCF 3.0, RCS, STeP, and OEKO TEXR Standard
100 Class 1, ensuring responsible sourcing, chemical stewardship, and the highest product
safety standards. CFY also advanced its environmental performance through CEMS migration
to the CPCB's ODAMS portal, securing SO -limit exemption for the TPP in line with
national regulations, and progressing biodiversity assessment under a No Net Loss (NNL)
framework.
The shift from paper-based permits to a digital E Permit system has
transformed visibility and governance, enabling analysis of 12,000+ permits to identify
work patterns, high-risk zones, and opportunities for engineering interventions.
Similarly, the structured Process Safety Event (PSE) reporting framework, aligned to API
RP 754 and CCPS, has deepened risk visibility with 717 events captured across tiers,
strengthening barrier management and early warning capability.
Through its integrated focus on product innovation, value chain
transparency, safety leadership, and responsible operations, the CFY business continues to
demonstrate resilience and steady, sustainable progress.
Chemicals
The R&D efforts are focusing on further enhancing our chlorine
derivative portfolio, developing new products improving the chlorine utilisation, and cost
optimisation of current product portfolio.
Through our R&D Centre, we continue to advance water treatment
technologies with a strong focus on safety, sustainability, and regulatory compliance.
During the year, we progressed the development of sustainable potable water solutions,
including the demonstration of HSBP technology for both swimming pool and drinking water
sanitation. For the textile sector, we introduced new Vytal formulations to address the
treatment of coloured effluents effectively. We also developed cost effective solutions
for COD reduction and fluoride removal, along with specialised products for Zero Liquid
Discharge (ZLD) applications involving RO membrane systems used in Effluent Treatment
Plants (ETPs) and Common Effluent Treatment Plants (CETPs). Additionally, we strengthened
our Vytal portfolio to offer a comprehensive range of coagulants catering to diverse
applications across textile, metallurgy, ceramics, and refinery industries. During the
year, we developed sustainable manufacturing technology for the Vytalfix product range and
have filed a patent for this innovation. Business development and R&D team worked
closely with customers across paver blocks, clear film liquids, and artificial leather
segments during the year. As a result of these collaborations, sustainable formulations
have been successfully developed and commercialised under the Twist brand. In addition,
product ranges are being developed to enhance compatibility between PVC and phthalate free
plasticisers, supporting both business growth and customer adoption of more human friendly
formulations. Further, a compatibilizer product portfolio for coatings and adhesives
applications is under development and is planned for commercialisation in the next
financial year.
The Company's R&D Centre received an extension of recognition
from the Department of Scientific and
Industrial Research (DSIR) for a further three years and continued
collaborative projects with reputed institutions. During the year, the Company obtained
NSF/ANSI, Halal, and Kosher certifications for its operating units, with expansion to
additional sites and product ranges in progress and achieved K REACH compliance along with
EPA federal registration for high strength bleaching powder. The Company's systems
and practices were recognised by the Indian Chemical Council (ICC) under the Responsible
CareR programme, enabling the use of the Responsible CareR logo across all eight
manufacturing sites. Auditors acknowledged the organisation's strong commitment to
Responsible Care principles, particularly the effective implementation of product
stewardship practices across the value chain, from raw material sourcing to end of life
management, supported by R&D led stewardship initiatives. R&D activities also
included technical publications and presentations at national and international forums to
promote safe and responsible product use.
The Company's R&D Centre, in collaboration with Aditya Birla
Science and Technology Company Private Limited (ABSTCPL), successfully supported the
implementation of food grade phosphoric acid technology at the Karwar site.
The R&D team also strengthened the process technology to
accommodate key raw materials from multiple sources, thereby enhancing supply flexibility
and supporting long-term business sustainability.
Specialty Chemicals (Epoxy Polymers and Curing Agents)
Our R&D team continues to lead the sustainability agenda through
platform innovations focused on bio based products, waterless and solvent free systems,
green processes, and circularity ready chemistries. We are expanding the epoxy
portfolio's design principles to enable recyclability-spanning resin and curing agent
development through end of life recovery pathways-while maintaining uncompromised
performance. To close the loop, we are building strategic partnerships across the value
chain, including customers, recyclers, collectors, and academic institutions, aimed at
recycling, recovering, and reusing materials. Alongside these efforts, we maintain a
strong and sustained focus on CMR free formulation development for multiple end
applications, including flooring and wind energy. We continue to scale portfolios that
prioritise safety, low emissions, and reduced environmental footprint.
We are also extending our technology platforms into adjacent markets,
such as composites, electrical, coatings, and construction, while driving deeper
penetration into polyester applications. Active collaboration with OEMs and Tier partners
is enabling the introduction of recyclable epoxy systems into E&E applications,
aligned with the sector's growing requirements for circularity and responsible end of
life solutions. Our epoxy systems have advanced to deliver enhanced fire resistance for
electronics applications, and we continue working closely with customers to further
improve these offerings. A key focus area remains the development of Bisphenol A (BPA)
free can coatings for the food industry, delivering sustainable and safe performance with
excellent corrosion resistance, adhesion, and processability. This programme includes
customer qualification testing and alignment with global regulatory and safety standards.
In parallel, we are expanding the portfolio toward waterborne epoxies to reduce Volatile
Organic Compounds (VOCs) and enhance worker and environmental safety, with targeted
performance across industrial metal, flooring, and protective coatings. As we continue to
develop new solutions, we remain committed to the constant improvement of the efficiency
and sustainability of our existing liquid epoxy resin processes through focused process
optimisation and continuous improvement initiatives.
Textiles
The Textiles business continues to drive innovation by serving emerging
customer needs with a strong focus on sustainability, performance, and continuous process
improvement. Our efforts are centred on developing future-ready textile solutions that
balance comfort, aesthetics, and environmental responsibility. The key innovations
launched this year are as follows:
Key Innovations Launched this Year
All-Season Fabric: Our All-Season Fabric is a premium blend of
Linen and Wool, engineered to deliver comfort across varied climatic conditions. Linen
provides a cooling effect, while wool naturally regulates body temperature, ensuring
all-day comfort with superior moisture management. The fabric features a subtle linen slub
combined with the softness of wool, creating a refined and luxurious appearance with a
soft hand feel and structured drape. Its ability to rapidly absorb and release moisture
helps keep the wearer dry and fresh throughout the day. Crafted entirely from natural,
bio-degradable fibres, this breathable yet temperature-balancing fabric reflects our
commitment to eco-conscious innovations while meeting premium performance expectations.
Circular Solutions: While Linen is inherently considered an
eco-friendly fibre, we have extended its sustainability potential by developing fabrics
using recycled Linen sourced from pre-consumer linen waste. This initiative aligns with
the growing global emphasis on circular economy principles and the increasing demand for
recycled textile solutions.
We are actively working toward establishing a closed loop system,
enabling resources to be reused and recycled continuously, thereby minimising waste and
environmental impact. Recycled Linen plays a critical role in reducing waste and
conserving natural resources, making it a key value driver in our journey toward a more
sustainable and future-ready textile business.
Innovation at our Textiles business is strongly supported through
strategic collaborations with leading research and industry partners. We work closely with
ABSTCPL, TRADC (Textile Research & Application Development Centre), and ICAR (Indian
Council of Agricultural Research), alongside global partners, such as CEC, The Woolmark
Company, Sanitized, Asahi Kasei, and other specialty fibre and chemical suppliers. These
collaborations enable us to explore and develop innovative yarns, finishes, and fabric
solutions. Our broad R&D initiatives are designed to address both present and future
needs of the textile industry, ensuring we remain at the forefront of sustainable
innovation, quality, and customer-centric product development.
Particulars of Employees
Disclosures pertaining to remuneration and other details as required
under Section 197(12) of the Act, read with Rule 5(1) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014, are given in Annexure ‘G'
to this Report.
In accordance with the provisions of Section 197(12) of the Act, read
with Rules 5(2) and 5(3) of the Companies
(Appointment and Remuneration of Managerial
Personnel) Rules, 2014, the names and other particulars of employees
drawing remuneration in excess of the limits, set out in the aforesaid rules, forms part
of this Report. In line with the provisions of Section 136(1) of the Act, the Report and
Accounts, as set out therein, are being sent to all the Members of the Company, excluding
the aforesaid information about the employees. Any Member, who is interested in obtaining
these particulars about employees, may write to the Company Secretary at
grasim.secretarial@adityabirla.com.
Policy on Prevention of Sexual Harassment of Women at Workplace
Our Company has zero tolerance for sexual harassment at workplace. Our
Company has adopted a Policy on Prevention, Prohibition and Redressal of Sexual Harassment
at workplace in line with the provisions of the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013 (‘POSH Act'), and the Rules
framed thereunder. All employees (permanent, contractual, temporary and trainees) are
covered under this policy.
Our Company has constituted Internal Complaints Committee to redress
and resolve any complaints arising under the POSH Act. There were 2 (two) complaints
pending at the beginning of the year. During the year, 8 (eight) complaints were received,
out of which 8 (eight) complaints were resolved, and 2 (two) complaints were unresolved at
the end of the year. The Company is committed to providing a safe and conducive work
environment to all its employees and associates.
Compliance of the Provisions Relating to the Maternity Benefit Act,
1961
The Board affirms that the Company remains fully committed to upholding
its Maternity Policy in strict compliance with applicable laws, including the Maternity
Benefit Act, 1961, and in alignment with internal human resource protocols.
The policy is designed to support the health, well-being, and work-life
balance of women employees during and after pregnancy.
Human Resources
Our Company's human resource is the strong foundation for creating
many possibilities for its business. The efficient operations of manufacturing units,
market development and expansion for various products were the highlight of our
people's effort.
Continuous people's development for developing knowledge and
skills coupled with the Talent Management practices will deliver the talent needs of the
Organisation. Our Company's employee engagement score reflects high engagement and
pride in being part of the Organisation. The Group's Corporate Human Resources plays
a critical role in the Company's talent management process.
Awards and Accolades
x BW Businessworld Top 3 Conglomerates - Sustainable Organization 2025
x Times Group, Global Sustainability Alliance Sustainable Organization 2025 x CNBC-TV18
India Risk Management Awards 2025 - “Masters of Risk, Conglomerate” Large Cap
category. x Grasim Ranks 3rd in Hurun Perpetual 2026 x Grasim Treasury won Adam Smith
Award 2025 x Grasim won ICC Social Impact Awards 2026 in education and animal care x
Grasim won the CSR Times Award 2025 x Grasim CSR won Large Corporate Health Program and
Most Innovative education project from IHW, Integrated Health &
Wellbeing Council, Delhi x Grasim recognised for contribution to NSE Nifty 50 - 3 decades
event x Birla Cellulose No 1 ranking in Canopy's Hot Button Report 2025 x SFD,
Nagda awarded “12th CSR Times Awards 2025 Gold -" Livelihood category" x
CFY, Veraval Unit awarded Golden Peacock National Energy Award 2025 x CFY, Veraval Unit
awarded CII Energy Efficient Unit Award at 26th National Award for Excellence in Energy
Management 2025 x CFY, Kalyan Unit awarded Golden Peacock HR Excellence Award 2025 x CFY,
Kalyan Unit awarded CII National Manufacturing Excellence Award and Energy Efficient Unit
Award 2025 x CFY, Kalyan Unit awarded National Award for Manufacturing Competitiveness by
IRIM Mumbai x Chemical Division awarded with Responsible Care Logo, a global voluntary
initiative by the Chemical Industry aimed at continuously improving Environment, Health
and Safety performance x Chemical Division, Vilayat Unit won the ICC EVONIK
Award of Excellence in Management of Environment x Insulator Business,
Rishra Unit won the Quality Award in the Gold Category at ICC Quality Management Systems
Conference 2025 x Birla Opus Paints awarded Gold at PRCA Awards 2025 in
Best New Product Launch (for ‘Make Life Beautiful') x Birla Opus Paints won
SABRE APAC 2025 in Home/Furniture Industry Category.
Update on Material Orders passed by the Regulators
x The Competition Commission of India (‘CCI') had passed an
order under Section 4 of the Competition Act, 2002, dated 16th March 2020, imposing a
penalty of I 301.61 crore in respect of the investigation period 2012-17. The Company had
filed an appeal against the order before the Hon'ble National Company Law Appellate
Tribunal ('NCLAT'), and had obtained a stay by depositing I 30.16 crore with NCLAT by way
of fixed deposit. On 5th May 2026, the NCLAT set aside the Order dated 16th March 2020,
and remanded the matter back to the CCI for fresh hearing and consideration. Consequently,
the penalty of I 301.61 crore and certain behavioural directions imposed earlier on the
Company have been set aside. x The CCI had passed another order dated 6th August 2021,
under Section 4 of the Competition Act, 2002, in respect of the investigation period
2017-18. The Company filed appeal before the Hon'ble NCLAT. Pursuant to the NCLAT
order dated 5th May 2026 setting aside and remanding the CCI's order dated 16th March
2020, the Company shall take appropriate steps in the pending appeal.
General
Your Directors state that no disclosure or reporting is required in
respect of the following items as there were no transactions on these matters during the
year:
1. No material changes and commitments affected the financial position
of the Company between the end of the financial year and the date of this Report;
2. No Issue of equity shares with differential rights as to dividend,
voting or otherwise;
3. No Issue of sweat equity shares to the employees or directors of the
Company;
4. The Managing Director of the Company does not receive any
remuneration or commission from any of its Subsidiaries;
5. There were no revisions in the financial statement(s);
6. There has been no change in the nature of business of the Company;
7. No significant or material orders were passed by the Regulators or
Courts or Tribunals which impact the going concern status and the Company's
operations in the future. The update on the status of material orders passed by the
Regulators or Hon'ble Court or Hon'ble Tribunals is provided in this Report;
8. There were no proceedings initiated under the Insolvency and
Bankruptcy Code, 2016;
9. There was no instance of one-time settlement with any Bank or
Financial Institution; and 10. There was no failure to implement any Corporate Action.
Acknowledgement
Your Directors express their deep sense of gratitude to the
shareholders, banks, financial institutions, stakeholders, business associates, Central
and State Governments for their cooperation and support and look forward to their
continued support in future.
Your Directors very warmly thank all our employees for their
contribution to the Company's performance. We applaud them for their superior levels
of competence, dedication and commitment to our Company.
|
Kumar Mangalam Birla |
|
Chairman |
| Mumbai, 20th May 2026 |
DIN: 00012813 |
|