CFO — Finance, Cash & Capital

Quality of earnings, 13-week cash, covenant runway, working-capital unlock and the value levers behind the PE thesis.

Grasim Industries Limited · FY26 (modeled)

India's #1 VSF producer, Top 3 cement

24,000 employees · 0+ US sites · 51 countries

▲ Executive read· the answer, then the moves

Liquidity of $18500M (≈ 37 weeks of cover) and $122170M of deal capacity make capital the lever, not the constraint. Free the trapped cash first: normalizing DSO to 48d releases ≈ $6774.1M and clears $517.0M of overdue receivables.

6 of 8 headline metrics improving vs prior · still off target: EBITDA $32.15B vs $34.00B, EBITDA Margin 18.2% vs 19.0%, Liquidity $18.50B vs $20.00B

Do now — ranked by urgency

1
Birla Estates credit exposureAct now
Why it matters
Move to credit hold pending paydown; reforecast ARR net of likely churn.
What's driving it
Overdue AR
Signal: Alert
FYI
Distress filings + overdue AR; churn risk High on $6.4M account.
Act →▤ open the overdue book
2
Covenant headroom 0.9× (lev 4.6× vs 5.5×)Act now
Why it matters
Sets deal capacity and refinancing risk.
What's driving it
Q1 (act)
Signal: Threshold
FYI
Net-debt/EBITDA 4.6× against a 5.5× ceiling.
Owner: CFO · Treasury
Act →
3
Pull working capital — drive DSO 62→48dWatch
Why it matters
Closing the DSO gap releases ≈ $6774.1M of one-time cash; $517.0M is already >60 days overdue and at collection risk.
What's driving it
DSO 62d vs 48d target
Overdue (>60d) $517.0M of $3143M AR
FYI
Brand-level unlock to a 50d stretch ≈ $230.3M
Owner: Treasury
Collect →▤ open the overdue receivables
4
3 brands running DSO > 65 daysWatch
Why it matters
Targeted collections sprint on $0.9M; tighten milestone billing on ISC projects.
What's driving it
DSO
Signal: Alert
FYI
ISC (67d), Birla Cellulose (66d), Birla Estates account (67d) lifting blended DSO.
Act →▤ open the overdue book

Adjusted EBITDA

$32150M

+26% YoY · 18.2% margin

Liquidity

$18500M

≈ 37 weeks of disbursements

M&A deal capacity

$122170M

≈ $12217M EBITDA @ ~10x to 5.5x

Working-capital unlock

$6774.1M

DSO 62→48d target

Quality of earnings

Reported → Adjusted EBITDA

$29659.55M of add-backs (92% of adj.) — the diligence-grade walk.

Driver bridge

EBITDA — prior to current year

Organic vs. acquisitive vs. price/mix vs. cost.

Treasury

13-week direct cash flow forecast

Above minimum

Net weekly cash (bars) and ending cash (line) vs. $20M minimum. Forecast trough: $776.91M.

$920.38M

Opening cash

$6594M

13-wk collections

$6510M

13-wk disbursements

$1004.3M

Closing cash

Capital structure

Leverage runway vs. covenant

Net Debt/EBITDA deleveraging path against the 5.5x covenant ceiling.

Headroom = firepower

Deal capacity

Net-debt capacity to 5.5x

$122170M

≈ $12217M acquirable EBITDA @ ~10x

Net Debt/EBITDA1.7x

Covenant Headroom22.0x

Debt Service Coverage Ratio2.4x

Free Cash Flow$8.70B

Where the cash is trapped

Working-capital cash unlock

$230.3M opportunity

Normalizing laggard brands to a 50-day DSO releases ~$230.3M of one-time cash.

Livaeco67d

$51.7M

Birla Pivot61d

$47.3M

UltraTech Cement56d

$42.7M

Birla Cellulose66d

$34.4M

Aditya Birla Renewables60d

$27.4M

Birla Opus58d

$20.2M

Aditya Birla Capital54d

$6.5M

Concentrated in newer cohorts (ISC, Signet, RFI) where billing discipline lags integration — the fastest cash win this fiscal year.

Revenue quality

Recurring engine & margin

Annuity growth and where EBITDA is generated.

Annual Recurring Revenue

$2.10B

▲ 16.7% vs priorTarget $2.30B

Recurring Revenue Mix

12.1%

▲ 5.2% vs priorTarget 13.0%

Net Revenue Retention

105.0%

▲ 1.0% vs priorTarget 106.0%

Gross Revenue Retention

97.0%

▲ 1.0% vs priorTarget 98.0%

Annuity engine

ARR bridge

Trend

ARR growth

By business unit

EBITDA margin

Collections

AR aging

Total AR $3143M

Current days$1475.32M

1-30 days$785.03M

31-60 days$365.45M

61-90 days$265.29M

90+ days$251.75M

Overdue (>60d) = $517.0M at collection risk.

By account

Receivables & credit watch

Accounts ranked by DSO and credit/churn risk.

Account	Revenue	DSO	NRR	Credit/Churn
Birla Estates	$173.25M	67d	97%	High
Shree Traders	$349.2M	63d	104%	Medium
Godrej Properties	$110.99M	59d	100%	Medium
Reliance	$384.39M	58d	112%	Low
Welspun	$194.9M	55d	105%	Medium
IBM	$262.58M	52d	101%	Medium
UPS	$305.89M	49d	106%	Low
Raymond	$503.5M	47d	108%	Low
DLF	$435.83M	44d	119%	Low
Trident Group	$157.01M	41d	110%	Low

M&A

Acquisition cohort economics

EBITDA uplift, DSO normalization and synergy realization (as-acquired → current).

Brand (cohort)	Acq.	Revenue	EBITDA %	DSO	Integration	Synergy	Status
Birla Opus	2021	$920.38M	243.63→378.98%	71→58d	100%	92%	Integrated
Aditya Birla Capital	2021	$595.54M	216.56→351.91%	66→54d	100%	90%	Integrated
UltraTech Cement	2022	$2598.73M	297.77→433.12%	68→56d	95%	88%	Integrated
Birla Pivot	2023	$1570.06M	270.7→351.91%	70→61d	82%	74%	In progress
Livaeco	2024	$1109.87M	243.63→297.77%	73→67d	60%	55%	In progress
Aditya Birla Renewables	2024	$1001.59M	243.63→324.84%	71→60d	80%	78%	In progress
Birla Cellulose	2024	$785.03M	216.56→243.63%	69→66d	45%	40%	Early

Supply

Supplier terms & risk

Partner spend, DPO (working-capital lever), delivery and risk.

Supplier	Category	Spend	DPO	OTIF	Score	Risk
Suryachem	Video Surveillance	$1732.48M	45d	96%	91	Low
DCW Ltd	Fire & Access	$1570.06M	42d	93%	88	Low
GACL	Critical Comms	$1109.87M	38d	90%	85	Medium
Hindalco	Video Surveillance	$730.89M	36d	89%	83	Medium
Tata Chemicals	Video VMS	$622.61M	40d	95%	87	Low
India Glycols	AV / Collaboration	$514.33M	44d	92%	86	Low