Sprng deal could deliver fresh spark to drive Grasim revenue

Grasim Industries is acquiring Sprng's renewable energy portfolio for about Rs 17,200 crore, giving it 5 GW capacity (3.3 GW operational, 1.7 GW under construction) at an implied Rs 3.4 crore per MW, below the Rs 4-5.5 crore per MW cost of greenfield solar projects. The renewable business already grew 60% YoY to Rs 251 crore in revenue with Rs 199 crore in EBITDA. The largely debt-funded deal may raise Grasim's standalone FY28 EPS estimates by around 8% lower, but its debt-to-equity of 0.3 and Rs 36,915 crore net debt provide balance sheet capacity to absorb the borrowing.