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.

Carborundum Universal Limited's Board of Directors met on May 14, 2026 and approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The statutory auditors, M/s. Price Waterhouse Chartered Accountants LLP, issued an unmodified opinion on both the standalone and consolidated financial results for the financial year ended March 31, 2026.

Standalone Financial Performance

Standalone sales for FY26 were at Rs. 3024 Crores, denoting a growth of 8.6 percent over the previous year. Growth was led by Electrominerals, which grew by 11.1 percent, while Ceramics and Abrasives segments recorded 6.5 percent and 6.2 percent growth respectively. For Q4FY26, standalone sales were at Rs. 845 Crores, marking a growth of 23.0 percent over Q4FY25, with Electrominerals growing 22.3 percent, Ceramics 21.7 percent, and Abrasives 21.5 percent. Standalone profit after tax on a full-year basis was Rs. 416 Crores as against Rs. 322 Crores last year, while standalone profit after tax for Q4FY26 was Rs. 122 Crores as against Rs. 61 Crores last year.

The following table summarises key standalone financial metrics (Rs. in Lakhs):

Consolidated Financial Performance

Consolidated sales for FY26 were at Rs. 5149 Crores, representing a growth of 6.5 percent over the previous year, driven by Ceramics at 9.3 percent, Abrasives at 5.1 percent, and Electrominerals at 3.7 percent. For Q4FY26, consolidated sales were at Rs. 1383 Crores, a growth of 15.4 percent over Q4FY25, with Ceramics growing 18.6 percent, Electrominerals 14.0 percent, and Abrasives 13.4 percent. Consolidated profit after tax and non-controlling interest for FY26 was Rs. 195 Crores, compared to Rs. 293 Crores in the previous year, impacted by exceptional items. On a quarterly basis, Q4FY26 recorded a consolidated net loss of Rs. 176 Crores against a net profit of Rs. 291 Crores in Q4FY25, reflecting the impact of exceptional charges during the quarter.

Key consolidated financial metrics are presented below (Rs. in Lakhs):

Exceptional Items and Subsidiary Developments

In FY26, the CUMI group recorded exceptional items before tax of Rs. 135 Crores. These comprised:

• CUMI Awuko Abrasives GmbH (CAAG), Germany: Rs. 119 Crores relating to write-down of various assets and recognition of restructuring costs, following the Board of CUMI International Limited, Cyprus approving the initiation of voluntary winding-up of CAAG on March 30, 2026, due to continued underperformance and mounting losses.
• Foskor Zirconia (Pty) Ltd (FZL), South Africa: Rs. 16 Crores relating to write-down of various assets to realisable value, after the Board of FZL concluded on May 13, 2026 that continuation of operations was not viable given sustained losses, escalating input costs, and prevailing market conditions.

Additionally, the geo-political situation continues to present an uncertain environment for Volzhsky Abrasive Works (VAW), Russia, which was added to the US Department of Treasury's OFAC Specially Designated Nationals and Blocked Persons List. Cash and cash equivalents of VAW amounting to Rs. 29,711 lakhs are not available for use by other entities within the Group due to temporary repatriation restrictions. No additional impairment was deemed necessary for VAW in the current year beyond the Rs. 10,413 lakhs recognised in the previous year.

Segment-wise Performance

The consolidated segment-wise revenue and profit before finance costs and tax (PBIT) for FY26 are summarised below (Rs. in Crores):

• Electrominerals: Standalone sales of Rs. 906 Crores grew by 11.1 percent, driven by strong export growth to European markets and an increased share of high-margin, value-added products. Consolidated growth was softer due to the higher base of the previous year, when VAW had three quarters of normal sales prior to US sanctions.
• Ceramics: Standalone sales of Rs. 1000 Crores grew 6.5 percent, led by the Engineered Ceramics and Refractories segments. Standalone profits were softer due to deferment of domestic projects in the first half and tariff-related uncertainties in American markets.
• Abrasives: Standalone sales of Rs. 1270 Crores grew 6.2 percent, with broad-based growth across Retail, Industrial, and Precision segments. Standalone PBIT was almost flat at Rs. 194 Crores.

Capital Expenditure, Cash Flows, and Balance Sheet

Capital expenditure for FY26 was Rs. 309 Crores at the consolidated level, compared to Rs. 282 Crores in the previous year. Free Cash Flow to PAT on a full-year consolidated basis was 56.6 percent, compared to 16.1 percent last year. On a standalone basis, Free Cash Flow to PAT was 46.5 percent, compared to 13.9 percent last year. The debt equity ratio at the consolidated level stood at 0.08. Consolidated total assets as at March 31, 2026 were Rs. 5,29,055 lakhs, compared to Rs. 4,64,328 lakhs as at March 31, 2025.

Dividend and Annual General Meeting

The Board of Directors recommended a final dividend of Rs. 2.50 per share (250% on face value of Re. 1 per share) for FY26. An interim dividend of Rs. 1.50 per share was declared at the Board meeting held on January 29, 2026 and has been paid. The total dividend for FY26 thus aggregates to Rs. 4.00 per share (400% on face value of Re. 1 per share), the same as the total dividend paid in the previous year. The Record Date for the final dividend is Friday, July 31, 2026, and the 72nd Annual General Meeting is scheduled for Friday, August 7, 2026. Subject to shareholder approval, the final dividend is expected to be credited electronically to eligible shareholders by Tuesday, August 18, 2026.