Carborundum Universal Limited (CUL) has received approvals from both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) for the reclassification of two entities from its promoter group category. This development marks a change in the company's ownership structure and regulatory compliance landscape.

Key Details of the Reclassification

The two entities being reclassified are:

1. Coromandel Engineering Company Limited (CECL)
2. Yanmar Coromandel Agrisolutions Private Limited (YCAS)

These companies, previously part of Carborundum Universal's promoter group, will no longer hold this status following the reclassification.

Approval Process and Timeline

The reclassification process has progressed through several stages:

• October 8: Initial intimation by Carborundum Universal
• October 13: Application submitted to stock exchanges
• November 14: Approval granted by both BSE and NSE

Regulatory Implications

This reclassification is governed by Regulation 31A of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015. The move affects Carborundum Universal's regulatory compliance requirements and potentially its ownership structure.

Stock Exchange Approvals

Both major stock exchanges have provided their no-objection to the reclassification:

Company's Response

Rekha Surendhiran, Company Secretary of Carborundum Universal Limited, has officially communicated this development to the stock exchanges, ensuring compliance with regulatory disclosure requirements.

Market Implications

This reclassification could potentially impact investor perceptions and the company's regulatory reporting structure. Shareholders and market analysts may monitor how this change affects the company's governance and ownership dynamics.

Carborundum Universal is expected to make subsequent disclosures related to this reclassification as required by SEBI regulations. Investors and stakeholders are advised to keep an eye on further announcements from the company for any material impacts resulting from this change in promoter group composition.

Carborundum Universal Limited (CUMI) has reported a 6.4% year-on-year increase in consolidated sales for the second quarter of fiscal year 2026, despite challenges in its Russian subsidiary. The company's performance was driven by growth in its Abrasives and Ceramics segments, while maintaining its full-year guidance.

Financial Highlights

• Consolidated sales for Q2FY26 reached INR 1,287.00 crores, up from INR 1,209.00 crores in Q2FY25.
• Quarter-on-quarter growth of 6.6% from INR 1,207.00 crores in Q1FY26 to INR 1,287.00 crores in Q2FY26.
• Profit Before Interest and Tax (PBIT) for Q2FY26 stood at INR 111.00 crores, compared to INR 154.00 crores in the same period last year.
• H1FY26 consolidated sales grew by 4.2% to INR 2,493.00 crores from INR 2,393.00 crores in H1FY25.

Segment-wise Performance

Abrasives

• Q2FY26 sales grew by 7.4% to INR 584.00 crores from INR 543.00 crores in Q2FY25.
• Sequential growth of 15% from INR 508.00 crores in Q1FY26.
• H1FY26 sales remained flat at INR 1,091.00 crores compared to H1FY25.

Ceramics

• Q2FY26 sales increased by 7.8% to INR 301.00 crores from INR 280.00 crores in Q2FY25.
• H1FY26 sales grew by 9.4% to INR 601.00 crores from INR 549.00 crores in H1FY25.

Electrominerals

• Q2FY26 sales marginally declined by 0.9% to INR 399.00 crores from INR 402.00 crores in Q2FY25.
• H1FY26 sales grew by 2.6% to INR 804.00 crores from INR 783.00 crores in H1FY25.

Subsidiary Performance

RHODIUS Abrasives

• H1FY26 net sales decreased by 9% to EUR 30.60 million from EUR 33.80 million in H1FY25.
• Q2FY26 sales grew by 5.4% to EUR 17.40 million from EUR 16.50 million in Q2FY25.
• Sequential growth of 31.6% from EUR 13.20 million in Q1FY26, reflecting resolution of logistics challenges.

AWUKO

• H1FY26 sales grew by 5.3% to EUR 5.50 million from EUR 5.30 million in H1FY25.
• Q2FY26 sales increased by 31% to EUR 2.90 million from EUR 2.20 million in Q2FY25.

Volzhsky Abrasive Works (VAW)

• Q2FY26 sales in local currency declined by 37.2% due to ongoing sanctions.
• Management expects a 25% volume reduction for the full year.

Outlook and Guidance

• Maintained full-year guidance of 5.5-6.5% consolidated sales growth.
• Confirmed capex spending of INR 350.00 crores, with INR 162.00 crores already invested in H1FY26.
• Expects stronger performance in the second half, particularly in Ceramics driven by order backlogs.
• Anticipates sequential recovery in the Abrasives business.

Capital Expenditure and Future Plans

• Ongoing investments in semiconductor facilities, aerospace and defense, high-performance silicon carbide (HP SiC) facility, and thin wheel relocation.
• Focus on new areas such as ceramics for semiconductor fab equipment, with benefits expected from next year onwards.
• Aerospace and defense program investments on track, with contributions expected partly next year and mostly in the following year.

Mr. Sridharan Rangarajan, Managing Director of Carborundum Universal Limited, commented on the results, stating, "We are progressing based on our long-term trajectory. Our capex program is very much on track, and our balance sheet remains strong. We are working towards the goals set in our LTS 2030 strategy."

The company's performance demonstrates resilience in the face of global challenges, with strategic investments aimed at driving future growth across its diverse business segments.