Overall Financial Performance

  • Consolidated Revenue: ₹48,716 crore (highest ever), up 21% YoY
  • 24th consecutive quarter of YoY revenue growth
  • Two-year CAGR of 25% in quarterly revenues (from ₹32,000-33,000 crore two years ago)
  • Standalone Revenue: ₹11,795 crore, up 28% YoY
  • Standalone EBITDA: ₹1,094 crore, up 107% YoY
  • Consolidated Net Debt to TTM EBITDA: 1.45x (improved from 1.62x YoY)
  • Standalone Net Debt: ₹9,899 crore (increased due to timing difference between Aditya Birla Capital investment and UltraTech dividend receipt)

Capital Expenditure

  • FY27 Standalone Capex Budget: ₹3,157 crore
  • Q1 FY27 Capex Spent: ₹375 crore (12% of budget)
  • 45% of capex dedicated to growth projects

Birla Opus Paints Business Performance

  • Revenue: ₹1,661 crore, up 64% YoY and 17% QoQ
  • Market Position: Became India's third-largest decorative paints brand
  • Market Share: Gained 30 bps sequentially; combined share with Birla White Putty nearing early teens
  • EBITDA: Losses narrowed during the quarter
  • Price Increases: Cumulative 8.8% in Q1 FY27, with some impact flowing to Q2 FY27
  • Raw Material Cost: Increased 20-25% on COGS basis (10-14% as percentage of revenue)

Distribution & Market Reach

  • Towns Covered: 12,100+
  • Dealers Billed: 55,000+ (at least once)
  • Exclusive Retail Outlets: 1,450+ across 800+ towns
  • Depots: 147
  • Products: 228 products across 1,945 SKUs
  • Premium/Luxury Portfolio Contribution: 65% of sales value

Institutional Business

  • Growth: 85% YoY and 11% QoQ
  • Project Sites Billed: Nearly 11,000 during quarter
  • Specification Approvals: 83+ from government and other departments
  • Pipeline: 47,000 sites at various stages

Brand & Marketing

  • Brand Awareness: 90%+
  • Unaided Top-of-Mind Recall: Number 2 position
  • Painters/Contractors Applied: 925,000+ (at least once)
  • AID Partner Network: 4,400+ active firms across 100+ towns
  • PaintCraft Service: Available across 6,700+ pin codes
  • Advertising Spend: Normalized intensity in Q1 after heavy Q4 FY26 investments

Birla Pivot (B2B E-commerce) Performance

  • Revenue: ₹2,548 crore, up 75% YoY
  • Annualized Run Rate: Above ₹10,000 crore
  • EBITDA Break-even Target: Exit FY27
  • Private Labels: More than doubled YoY (off low base)
  • Categories: Building materials, non-ferrous, chemicals
  • UBS Contribution: 70-75% of retail mix (15-20% of total revenue)

Cellulosic Fibers Business

  • Revenue: ₹4,530 crore, up 12% YoY
  • Sales Volumes: Down 4% YoY (due to planned maintenance and subdued downstream demand)
  • Specialty Fiber Mix: Increased from 21% to 27% of sales
  • EBITDA: Roughly doubled YoY
  • Lyocell Expansion:
  • Phase 1 (55,000 TPA, ₹1,350 crore): Detailed engineering completing, civil work progressing
  • Phase 2 (110,000 TPA, ₹3,094 crore): Moving through environmental clearance

Chemicals Business

  • Revenue: ₹2,640 crore, up 10% YoY
  • EBITDA: ₹491 crore, up 16% YoY
  • ECU Realization: ₹37,955/ton, up 6% YoY
  • Product Mix:
  • Caustic soda: 49% of revenue
  • Specialty chemicals: 30% of revenue
  • Chlorine Integration: Expected to reach 68% by FY27 exit
  • New Plants: CPVC recently commissioned, ECH commissioning in Q2 FY27

Cement Business (UltraTech)

  • Gray Cement Capacity Added: 8.7 million tons in quarter
  • Total Gray Cement Capacity: 205.5 million tons (India and overseas)
  • Consolidated Sales Volume: 41.31 million tons, up 12% YoY
  • Consolidated EBITDA: ₹5,146 crore, up 12% YoY
  • Green Power Mix: 45.6% (up 23% YoY)
  • Renewable Power Capacity: 1.4 GW
  • UltraTech Building Solutions Outlets: 5,802 (up nearly 1,000 stores YoY)

Aditya Birla Capital Performance

  • Lending Portfolio: Nearly ₹220,000 crore, up 32% YoY
  • Housing Finance: Crossed ₹50,000 crore milestone, up 50% YoY
  • Equity Capital Raised: ₹4,000 crore (including International Finance Corporation participation)
  • Grasim Investment: ₹2,880 crore at ₹356 per share (maintaining stake on fully diluted basis)

Other Businesses

  • Renewable Business: Revenue up 59% YoY
  • Textile Business: Revenue up 26% YoY
  • Insulator Business: Serving power sector expansion

Royalty Payments

  • Rate: 0.25% of standalone revenue effective 1st June 2026
  • Cap: ₹225 crore
  • Estimated Impact: ~₹125 crore (based on ₹50,000 crore revenue)
  • Rationale: Transition to structured governance model for Aditya Birla Group brand usage

Macroeconomic Context

  • Global Economy: Navigating complex landscape with moderated inflation but cautious central bank stance
  • Geopolitical Impact: Conflicts in Europe and Middle East affecting shipping routes, commodity availability, and pricing
  • India GDP: RBI revised FY27 growth forecast upward to 6.7%
  • Domestic Drivers: Strong consumption, public infrastructure investments, improving private capex, healthy financial sector

Q&A Highlights

  • Paint Growth Sustainability: Guidance of >50% YoY revenue growth in FY27; INR10,000 crore target by FY28 unchanged
  • AB Renewables: Grasim contribution <₹1,000 crore in FY27; separate analyst session to be organized
  • Chemical Margins: Q2 pressure expected from higher cost inventory; daily pricing mechanism maintained
  • VSF Margins: Sustainability depends on input prices, demand, and currency movements; strong position in India
  • Net Debt Guidance: Maintain below 2x EBITDA for full year