Carborundum Universal (CARBORUNIV) Q2 25/26 earnings summary

Executive summary

• Consolidated Q2FY26 sales grew 6.4% year-over-year to INR 1,287 crores; standalone sales were INR 712 crores, up 1% year-over-year.

• H1FY26 consolidated sales rose 4.2% to INR 2,493 crores; standalone H1 sales were INR 1,410 crores, up 3% year-over-year.

• Consolidated PAT for Q2FY26 was INR 75 crores, down from INR 116 crores in Q2FY25, mainly due to lower profitability from the Russian subsidiary impacted by sanctions.

• Standalone PAT for Q2FY26 was INR 64 crores, down from INR 86 crores in Q2FY25; H1FY26 standalone PAT was INR 209 crores, up from INR 180 crores in H1FY25, aided by a one-time dividend income in Q1.

• Growth was led by Ceramics and Abrasives, while Electro Minerals saw marginal growth.

Financial highlights

• Q2FY26 consolidated PBIT was INR 111 crores, down from INR 154 crores in Q2FY25, but up 37% sequentially from Q1FY26.

• H1FY26 consolidated PBIT was INR 192 crores, down from INR 304 crores in H1FY25, mainly due to losses at VAW and RHODIUS.

• Standalone H1FY26 PBIT increased 7.9% year-over-year to INR 254 crores.

• Consolidated H1FY26 PAT was INR 136 crores, down from INR 229 crores in H1FY25.

• Consolidated EBITDA margin and debt-equity ratio remained healthy; capex for H1FY26 was INR 162 crores.

Outlook and guidance

• Consolidated sales growth for FY26 guided at 5.5%-6.5%; Ceramics at 16%-18%; Electro Minerals at 1%-2%; Abrasives at 4%-5%.

• Consolidated PBIT margin expected at 8.2%-8.5% for the year.

• CapEx for FY26 planned at INR 350 crores, with INR 162 crores spent in H1.

• H2 expected to be stronger, especially for Ceramics and Abrasives, driven by order backlog and project execution.

• Management continues to monitor the impact of international sanctions on the Russian subsidiary and expects ongoing uncertainty.