Grasim vs Bajajfinsv Q1 FY26

Grasim delivered a strong Q1 FY26 with consolidated revenue of INR 40,118 crore (+16% YoY) and EBITDA of INR 6,430 crore (+36% YoY), driven by robust cement and chemicals performance. Standalone revenue hit a record INR 9,223 crore (+34% YoY), aided by new businesses. The paint division (Birla Opus) maintained 65% premium/luxury product mix and expanded to 8,000 towns, while B2B e-commerce (Birla Pivot) is on track for $1B revenue by FY27. Cement volumes grew 10% YoY with EBITDA per ton of INR 1,248 (+37% YoY). Risks include margin pressure in epoxy from raw material costs and duty-free imports, and potential slowdown in decorative paint demand if industry discounting persists.

Guidance read

Paint business: 6th plant commercial launch by Q2 FY26: Trial production at Kharagpur plant has begun; commercial launch expected by end of Q2 FY26, raising total capacity to 1,332 million liters per annum. B2B e-commerce: $1B revenue by FY27: Birla Pivot's annualized revenue run rate is on track to achieve INR 8,500 crore ($1 billion) by FY27. Chemicals: ECH and CPVC plants mechanical completion in Q3 FY26: The ECH and CPVC plants with Lubrizol will achieve mechanical completion in Q3 FY26. Lyocell project completion by late 2027: The Lyocell project in the Cellulosic Fiber business remains on track for completion by late 2027.

Risk read

Key risks include Epoxy margin compression from raw material costs and duty-free imports — Hardening feedstock prices (BPA, ECH) and duty-free imports from Korea via FTA are squeezing epoxy margins; management is balancing market share and margins.; Decorative paint industry growth slowdown — Excluding Birla Opus, the organized decorative paint industry was flat to slightly negative YoY in Q1, with increased discounting in the economy segment.; Dealer attrition and competitive intensity in paints — Analyst raised concerns about dealer attrition; management denied significant attrition but acknowledged competitive intensity in the economy segment.; Chlorine derivative project deferrals — Some chlorine derivative projects have been deferred due to uncertain market conditions, potentially impacting future chemical segment growth..

Promise ledger

Of 1 tracked promise, management 0 met, 0 close, 1 missed.

Bajaj Finserv reported a strong Q1 FY26 with consolidated PAT up 30% YoY to INR 2,789 crore, driven by robust performance across insurance and lending subsidiaries. Bajaj Allianz Life saw VNB growth of 39% and margin expansion of 420bps to 11.1%, reflecting successful execution of BALIC 2.0 strategy. Bajaj Allianz General maintained a combined ratio of 103.6% (102.5% ex-one-by-N impact) with core business growing 15% ex-crop and government health. Bajaj Finance added 4.69 million new customers and expects to disburse over 50 million loans in FY26. Bajaj Housing Finance grew AUM 24% YoY. The Allianz exit process is progressing with regulatory approvals received. Key risks include elevated competition in general insurance and potential slowdown in group protection due to MFI sector headwinds.

Guidance read

BFL expects to disburse over 50 million new loans in FY26: Bajaj Finance guided for over 50 million new loan disbursements in full-year FY26, up from 13.49 million in Q1. BFL expects to add 14-16 million new customers in FY26: Bajaj Finance expects to add 14-16 million new customers in FY26, with 4.69 million added in Q1. BALIC expects H2 growth to be 'significantly comfortable': Management indicated that H2 growth will be significantly comfortable due to favorable base effects and strategy execution. BAGIC aims to maintain combined ratio close to 100%: Management reiterated its endeavor to keep combined ratio close to 100%, despite current elevated levels.

Risk read

Key risks include Intense competition in general insurance — Competition remains high across motor, health, and crop segments, potentially pressuring pricing and combined ratios.; Group protection degrowth due to MFI slowdown — BALIC's group protection business declined 7% YoY, largely due to slowdown in MFI lending, which is outside management's control.; Persistency dips in 13-month bucket — BALIC observed lower persistency in the 13-month bucket due to base effect of higher ticket size policies written in Q4 FY24.; Potential impact of tender-based crop business pricing — Management noted that crop tender pricing is below comfortable levels, which could lead to lower win rates or adverse loss ratios..

Promise ledger

Scorecard data is being built as historical quarters are processed.