Rakshit Hargave, CEO of Grasim Industries’ paints division Birla Opus, left just eighteen months after the company’s founding, causing its shares to drop 6% on November 6. In contrast, upon Hargave’s appointment as the FMCG company’s new CEO, Britannia Industries’ stock increased 2.5%.
Hargave’s resignation was described by international brokerage Jefferies as a “negative surprise” for Grasim, pointing out that his leadership had been crucial in growing the paints company in the face of fierce competition. Investor sentiment may continue to be cautious in the foreseeable future, the brokerage noted.
Despite announcing a 50% year-over-year increase in net profit for the September quarter, Grasim shares were down 6% at Rs 2,705.6 per share at 11:55 am on November 6. A day after Hargave’s appointment was announced, Britannia shares were up 2% at Rs 6,002.5. The shares of competitor Asian Paints also saw a nearly 6% increase in trading.
Britannia’s shares have increased by 28% so far in 2025, while Grasim’s have increased by 14%.
Grasim Q2 Outcomes
The flagship company of the Aditya Birla Group, Grasim Industries, reported a 52.4% increase in net profit to Rs 1,498.04 crore for Q2FY26 thanks to increased profitability in its chemical and cement operations. Due to an increase in building materials and chemicals, revenue from operations increased 16.6% to Rs 39,899.5 crore from Rs 34,222.5 crore in the previous year.
Grasim’s paint company, Birla Opus, kept growing its market position in the Indian decorative paints industry thanks to improved product quality, increased brand awareness, and the expansion of its distribution network. Its Kharagpur plant was put into service in October 2025, bringing its total capacity to 1,332 MLPA. As of September 2025, the company’s total capital expenditures for its paint business were Rs 9,727 crore.
Results for Britannia’s Q2
Stable commodity pricing and continuous cost optimization helped Britannia Industries achieve a 23.2% year-over-year increase in consolidated net profit to Rs 655.06 crore for Q2FY26. Operational revenue increased by 3.7% to Rs 4,840.63 crore.
Profitability increased as a result of “stable input costs and sustained efforts to optimise costs across the value chain,” according to Vice Chairman and Managing Director Varun Berry. The company’s net profit margin increased from 11.4% to 13.5% in the previous year.
