Dividend Windfall – Choices Abound

Research evidence excerpt

Dividend Windfall – Choices Abound

India | Building Materials

Grasim Industries EquityMayResearch12, 2026

COMPANY UPDATEDividend Windfall – Choices Abound

Grasim is set to receive ~Rs39.7bn from UTCEM's Rs240/sh payout in RATING BUY

4QFY26, a sharp step-up vs. prior yrs. The past 2 yrs suggest Grasim has PRICE INR2,982.05^

retained half of the dividend to fund new businesses, particularly paints. PRICE TARGET | % TO PT INR3,440 | +15%

With the dividend pool from UTCEM structurally looking higher, Grasim 52W HIGH-LOW INR3,006.45 - INR2,504.35

now has greater capital availability with optionality across growth funding, FLOAT (%) | ADV MM (USD) 54.3% | 31.44

deleveraging, & shareholder returns - and, if executed prudently, scope to MARKET CAP INR2.0T | $20.6B

narrow the HoldCo discount. TICKER GRASIM IN

^Prior trading day's closing price unless otherwise

noted.

Dividend windfall on the cards: GRASIM is set to receive ~Rs39.7bn from UTCEM’s Rs240/

sh dividend payout in 4QFY26, sharply higher vs. Rs11.6–12.8bn in FY25–FY26 and Rs6.1–

6.3bn in FY22–FY24. In recent years, GRASIM kept its dividend payouts stable despite higher FY (Mar) CHANGE TO JEFe JEF vs CONS

receipts, enabling retention of ~Rs5.2–6.6bn/yr (44–50%) vs. negligible earlier, aiding funding 2026 2027 2026 2027

of new businesses. The structurally higher dividend pool from UTCEM widens capital allocation REV NA NA +3% +1%

possibilities for GRASIM. EPS NA NA -16% -35%

Funding Growth Businesses: Birla Opus has largely completed its capital-intensive phase 2026 (INR) Q1 Q2 Q3 Q4 FY

and is now focused on execution - scaling distribution, expanding dealer reach, and building EPS -- -- -- -- 5.93

brand recall. Higher UTCEM dividends give Grasim flexibility to step up spending on dealer PREV