Carborundum Universal Limited has acquired a 29.58% equity stake in Putrim Renewables Private Limited for ₹6.48 crores, expanding its investment portfolio in the renewable energy sector. The transaction was completed on May 27, 2026, under the provisions of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This strategic move allows Carborundum Universal to secure a significant minority interest in the target company, thereby increasing its presence in the renewable energy market through Putrim Renewables.

Transaction Details

The acquisition details are summarized below:

The filing was submitted to the stock exchanges to disclose the material transaction, ensuring compliance with regulatory requirements.

Carborundum Universal reported a strong financial performance for the full year FY26, with standalone profit after tax (PAT) growing by 29.4% to reach INR 416 crores compared to INR 322 crores in the previous year. The company's standalone sales increased by 8.6% to INR 3,024 crores, crossing the INR 3,000 crore mark for the first time. On a consolidated basis, sales grew by 6.5% to INR 5,149 crores, surpassing the INR 5,000 crore milestone, while consolidated PAT included exceptional items of INR 135 crores primarily due to the winding up of subsidiary Awuko and asset write-downs at Foskor Zirconia.

Operational Performance and Segment Growth

The growth in standalone sales was broad-based across all three business segments. The Electrominerals segment led the performance with an 11.1% increase in sales to INR 906 crores, driven by a 100% surge in exports which now account for 33% of the segment's total sales. The Ceramics segment recorded sales of INR 1,000 crores, a growth of 6.5%, while the Abrasives segment grew by 6.2% to INR 1,270 crores. In the fourth quarter of FY26, standalone sales reached INR 845 crores, reflecting a robust sequential growth of 9.9% and a year-on-year increase of 23.1%.

Strategic Outlook and Guidance for FY27

Looking ahead to FY27, the company provided guidance for consolidated sales growth of approximately 4% to 4.5%. However, excluding the revenue contribution from loss-making subsidiaries Foskor Zirconia and CUMI Awuko, the comparable growth is expected to be in the range of 11% to 12%. The management expressed confidence in the Ceramics segment, projecting a growth of 15% to 15.5%, while the Abrasives segment is expected to grow by 5.5% to 6%. The Electrominerals segment is anticipated to see a decline of 6.5% to 7% due to the closure of Foskor Zirconia, though comparable growth is forecasted at 8% to 9%.

Capital Expenditure and Future Initiatives

The company incurred a capital expenditure (CAPEX) of INR 309 crores during FY26, with major investments directed towards advanced ceramics for semiconductor wafer fabrication, aerospace and defence applications, and the expansion of white fused alumina capacity. For FY27, Carborundum Universal plans to increase CAPEX to approximately INR 400 crores. Key focus areas include the expansion of advanced ceramics for power electronics, the addition of an integrated furnace facility for thermal spray powders, and the commissioning of a tunnel kiln for refractories. The company remains net debt-free with a debt-equity ratio of 0.08.