Carborundum Universal (CARBORUNIV) Q4 25/26 earnings summary

Executive summary

• Standalone sales for FY 2026 reached INR 3,024 crores, up 8.6% year-over-year, led by Electrominerals with 11.1% growth, Ceramics at 6.5%, and Abrasives at 6.2%.

• Consolidated sales for FY 2026 were INR 5,149 crores, a 6.5% increase year-over-year, with Ceramics up 9.3%, Abrasives 5.1%, and Electrominerals 3.7%.

• Standalone PAT for FY 2026 was INR 416 crores, up 29.4% year-over-year, including a one-time dividend of INR 76 crores from a subsidiary; consolidated PAT after non-controlling interest was INR 195 crores, down from INR 293 crores.

• Q4 FY 2026 standalone sales grew 23% year-over-year to INR 845 crores; consolidated Q4 sales rose 15.4% to INR 1,383 crores.

• Major loss-making subsidiaries (AWUKO, Foskor Zirconia, CAAG Germany, FZL South Africa) are being exited or wound down.

Financial highlights

• Standalone H2 FY 2026 sales grew 14.4% sequentially; Q4 standalone sales up 9.9% sequentially and 23.1% year-over-year.

• Standalone PAT for Q4 FY 2026 doubled year-over-year to INR 122 crores.

• Consolidated PBT before exceptionals dropped 27.2% year-over-year to INR 416 crores, mainly due to losses at VAW, Foskor, AWUKO, and RHODIUS.

• Exceptional items of INR 135 crores (including INR 119 crores for CAAG closure and INR 16 crores for FZL asset write-down) impacted consolidated results.

• Free cash flow to PAT at consolidated level was 56.6% (vs. 16.1% last year); standalone FCF to PAT was 46.5%.

Outlook and guidance

• FY 2027 consolidated sales expected to grow 4%-4.5%; excluding AWUKO and Foskor, comparable growth would be 11%-12%.

• Abrasives sales expected to grow 5.5%-6% (11%-12% excluding AWUKO); ceramics 15%-15.5%; electrominerals to decline 6.5%-7% due to Foskor closure, but 8%-9% growth excluding Foskor.

• Abrasives margin expected to rise to 9.5%-10% (from 4.3% reported, 7.9% excluding AWUKO); ceramics margin 20.5%-21%; electrominerals margin 9%-9.5%.

• CapEx planned at INR 400 crores for FY 2027, focused on ceramics, brown fused alumina, and new facilities.

• Board recommended a final dividend of INR 2.50 per share, totaling INR 4.00 per share for FY 2026, matching last year.