Carborundum Universal (CARBORUNIV) Q2 25/26 earnings summary

Executive summary

• Consolidated Q2FY26 sales grew 6.4% year-over-year to INR 1,287 crores; standalone sales were INR 712 crores, up 1% year-over-year.

• H1FY26 consolidated sales rose 4.2% to INR 2,493 crores; standalone H1 sales were INR 1,410 crores, up 3% year-over-year.

• Q2FY26 consolidated PAT was INR 75 crores, down from INR 116 crores in Q2FY25, mainly due to lower profitability from the Russian subsidiary impacted by sanctions.

• Standalone PAT for Q2FY26 was INR 64 crores, down from INR 86 crores in Q2FY25; H1FY26 standalone PAT was INR 209 crores, up from INR 180 crores in H1FY25, aided by a one-time dividend income in Q1.

• Growth was led by Ceramics and Electro Minerals, while Abrasives showed sequential recovery.

Financial highlights

• Ceramics Q2FY26 sales grew 7.8% year-over-year; H1FY26 up 9.4% to INR 601 crores.

• Abrasives Q2FY26 sales up 7.4% year-over-year; H1FY26 flat at INR 1,091 crores.

• Electro Minerals H1FY26 sales up 2.6% to INR 804 crores; Q2 sales flat year-over-year.

• Consolidated Abrasives PBIT for H1FY26 was INR 45 crores, down from INR 90 crores in H1FY25; margins declined from 8.2% to 4.1%.

• Consolidated H1FY26 PAT was INR 136 crores, down from INR 229 crores in H1FY25.

Outlook and guidance

• Consolidated sales growth for FY26 expected at 5.5%-6.5%.

• Ceramics segment guidance: 16%-18% growth; Electro Minerals 1%-2%; Abrasives 4%-5%.

• Consolidated PBIT margin expected at 8.2%-8.5% for the year.

• Management continues to monitor the impact of international sanctions on the Russian subsidiary and expects ongoing uncertainty.

• CapEx plan of INR 350 crores for FY26, with INR 162 crores spent in H1.