Carborundum Universal (CARBORUNIV) investor relations material

Executive summary

• Consolidated sales for Q1 FY26 grew 1.9% year-over-year to INR 1,207 crores, with stand-alone sales up 5.2% to INR 698 crores.

• Consolidated PAT declined 45.2% year-over-year to INR 62 crores, mainly due to lower volumes in VAW and Rodeus, while a one-time dividend boosted stand-alone PAT by 55.4% to INR 145 crores.

• Free cash flow at consolidated level was 98% of PAT; stand-alone free cash flow to PAT at 104%.

• Board approved unaudited standalone and consolidated financial results for Q1 FY26.

• CFO Sushil Kishor Bendale to step down effective September 26, 2025.

Financial highlights

• Consolidated sales up 1.9% year-over-year; stand-alone sales up 5.2%.

• Consolidated PAT down 45.2% year-over-year; stand-alone PAT up 55.4% due to a one-off dividend.

• Free cash flow conversion to PAT at 98% (consolidated) and 104% (stand-alone).

• Consolidated debt increased to INR 172 crores; debt-to-equity at 0.05.

• Consolidated EPS: Rs. 3.28 (basic); stand-alone EPS: Rs. 7.61 (basic).

Outlook and guidance

• Ceramic segment full-year sales growth guidance maintained at 16–18%.

• Electro Minerals guidance revised to 1–2% growth; abrasives revised to 4–5% due to Rodeus Q1 impact.

• Consolidated PBIT margin guidance lowered to 6–6.5%; overall PBAT margin expected to drop 250–300 bps from FY25.

• Rodeus logistics issues expected to normalize by August; rest of year sales to align with prior year.

• Management continues to monitor the impact of international sanctions on VAW, with ongoing assessment of asset recoverability and liquidity.