Grindwell Norton (GWN IN) – Q3FY26 Result Update – Mixed Q3; demand revival key to growth – HOLD
Published on 06 Feb 2026
Abrasives/C&P/Digital Services EBIT margin came in at 12.4%/15.7%/25.5%.
Grindwell Norton (GWN) delivered mixed quarterly performance with marginal revenue growth of 7.1% YoY to Rs7.5bn, while EBITDA margin expanded by 101bps YoY to 18.6% owing to better operating leverage, despite lower gross margin. Abrasives and C&P, both key segments, reported modest revenue growth of 5.2% and 6.3% YoY, respectively. While Abrasives delivered a 59bps YoY improvement in EBIT margin to 12.4%, this was on a relatively weaker base. The subdued top-line performance can be attributed to the lingering effects of Chinese dumping and slower export demand. Going forward, the recent downward revision in US reciprocal tariffs, along with the India-EU FTA, is expected to support a recovery in export growth. Additionally, the company’s front-end investments in capacity expansion position it well relative to peers. The stock is trading at a P/E of 38.1x/34.0x on FY27/28E earnings. We maintain ‘HOLD’ rating valuing the stock at a PE of 38x Sep’27E (same as earlier) arriving at a TP of Rs1,731 (Rs1,744 earlier).
