Carborundum’s Profit Down by 47.4% in June Quarter

Chennai, August 7, 2025 – Carborundum Universal Ltd (NSE: CARBORUNIV, BSE: 513375) announced the  financials for Q1FY26. The company’s profit came down by 47.4% in the quarter.

The company’s CFO (Mr. Sushil Kishor Bendale) will step down, effective 26th September 2025.

Share Price Movement

The stock plummeted by 3.51% and closed at ₹854 a piece on Thursday. The low high range today remained between ₹848 and ₹887. After today’s slump, the stock has fallen by 13.30% in the past month. The company’s P/E ratio is 57.63 compared to the industrial average of 35.43.

Consolidated Financial Highlights

In Q1FY26, the company reported a modest 1.8% YoY growth in revenue from operations at ₹1,219.02 crore. However, profitability declined sharply, with PAT falling by 47.4% to ₹60.39 crore and EPS dropping 44.8% to ₹3.28. Total comprehensive income also declined by 2.7%. The drop in profitability was mainly due to reduced performance in the Abrasives and Electro Minerals segments, particularly a steep decline in PBIT from the RHODIUS division.

Standalone Financial Performance

In Q1FY26, standalone revenue rose 5% YoY to ₹706.79 crore. Profit Before Tax increased 39.4% to ₹166.45 crore, while Profit After Tax surged 55.3% to ₹144.97 crore, partly due to ₹67.65 crore in dividend income from Southern Energy Development Corp. EPS also jumped 55.3% to ₹7.61. Notably, the FCF to PAT ratio improved significantly to 104%, up from 47% in Q1FY25, reflecting stronger cash flow efficiency.

Segment-Wise Performance 

In Q1FY26, Ceramics delivered strong growth with an 11.1% rise in revenue and a 15.8% jump in PBIT, driven by export volumes and improved product mix. Electro Minerals grew 6.3% in revenue but saw a steep 89.8% drop in PBIT due to weak performance at its Russian subsidiary and rising import competition. Abrasives underperformed, with revenue falling 8% and PBIT plunging 80% YoY.

Details on KMP (CFO) Resignation

Mr. Sushil Kishor Bendale has tendered his resignation as Chief Financial Officer and Key Managerial Personnel, citing career progression outside the company. His resignation will be effective post-business hours on September 26, 2025, as disclosed under SEBI Listing Regulations (Regulation 30 read with Para A(7) of Part A of Schedule III).

About the Company

Carborundum Universal Ltd (CUMI), part of the ₹77,881 Cr Murugappa Group, is listed on NSE and BSE. The company is a leading manufacturer of abrasives, ceramics, and electro minerals with a global footprint across over 50 countries.

REF:https://nsearchives.nseindia.com/corporate/CARBORUNIV_07082025143852_outcome_sd.pdf

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