Shares of Grasim Industries declined 2.95% to Rs 2,797 in Thursday’s trade despite the company reporting a solid Q2 FY26 performance earlier this week. The decline comes after the sudden resignation of Rakshit Hargave, CEO of Birla Opus (the paints business of Grasim), with immediate effect.
According to the company, Hargave stepped down just 18 months after the official launch of the paints division, which has been seen as one of the group’s most ambitious new ventures in recent years. His exit has raised investor concerns about leadership stability in the fast-growing business that competes with industry giants like Asian Paints and Berger Paints.
Leadership change amid expansion phase
Rakshit Hargave, who joined the Aditya Birla Group in 2023 to spearhead the paints foray, had been instrumental in shaping Birla Opus’s early brand identity and dealer network rollout. His resignation comes at a crucial time when the company is scaling up capacity across multiple regions.
In a parallel development, Hargave has been appointed as the new Chief Executive Officer (CEO) of Britannia Industries, effective December 15, 2025, succeeding Rajneet Kohli, who quit earlier this year. This leadership transition appears to have boosted sentiment for Britannia shares, which surged nearly 5% today, even as Grasim’s stock slipped.
Stock market reaction
Market analysts believe the decline in Grasim’s stock price reflects investor caution over management churn within its high-potential paints division. While the company’s Q2 FY26 results showed strong performance across cement and financial services segments, the leadership exit overshadowed those gains in Thursday’s session.
Grasim’s paints business, Birla Opus, was launched earlier this year with a sharp focus on disrupting India’s decorative paints market, backed by a capital outlay exceeding Rs 10,000 crore. Analysts say the CEO’s departure could temporarily delay short-term strategic execution, even though the long-term growth thesis remains intact.
Outlook
Despite the leadership setback, Grasim continues to expand its paints footprint aggressively. Investors will watch for announcements regarding the new leadership appointment at Birla Opus and the company’s broader growth roadmap in upcoming quarters.
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