Carborundum Universal (CUMI) announced its Q2 FY’26 results, showcasing a 6.4% increase in consolidated sales, reaching INR1,287 crores. While Abrasives and Ceramics segments demonstrated growth, Electrominerals faced a slight degrowth due to challenges with VAW. The company maintains its outlook for the fiscal year, focusing on strategic initiatives and navigating geopolitical uncertainties. Capex investment in H1 FY’26 was INR162 crores.
Financial Performance Highlights
Carborundum Universal Limited (CUMI) reported its Q2 FY’26 consolidated sales at INR1,287 crores, a 6.4% increase compared to INR1,209 crores in Q2 FY’25. Abrasives grew by 7.4% to INR584 crores, and Ceramics increased by 7.8% to INR301 crores. However, Electrominerals saw a marginal degrowth of 0.9%, reaching INR399 crores.
Consolidated sales for H1 FY’26 reached INR2,493 crores, a 4.2% growth from INR2,393 crores in H1 FY’25, driven primarily by the Ceramics segment.
PBIT for Q2 FY’26 was INR111 crores, compared to INR154 crores in Q2 FY’25. For H1 FY’26, PBIT was INR192 crores compared to INR304 crores, impacted by VAW, RHODIUS, and standalone performance.
Segment Performance
Abrasives
Q2 FY’26 sales grew by 7.4% to INR584 crores, driven by AWUKO, RHODIUS, and CUMI America. RHODIUS saw a sequential recovery, while standalone abrasives remained relatively flat.
Electrominerals
H1 FY’26 sales increased to INR804 crores, supported by standalone business and Foskor Zirconia. However, VAW experienced a degrowth.
Ceramics
H1 FY’26 sales grew by 9.4% to INR601 crores, driven by standalone operations and the Australian subsidiary. Standalone Ceramics sales in Q2 were INR228 crores, remaining flat YoY.
Consolidated PBIT for Q2 FY ’26 was at INR62 crores.
VAW Operations and Geopolitical Impact
VAW sales in local currency decreased by 37.2%, impacting overall Electrominerals performance. The company expects VAW to continue to face challenges, maintaining previous guidance of an approximate 25% drop in volume for the year. CUMI noted that the ongoing geopolitical situation makes it difficult to predict future outcomes.
Strategic Initiatives and Outlook
CUMI maintains its previously shared outlook for the current fiscal year, projecting consolidated sales growth of 5.5% to 6.5%. Capex spending is progressing as planned, with a total investment of approximately INR350 crores expected for the year. The company is focused on expanding into new areas such as semiconductor, electronics, aerospace, and defense, with contributions expected to materialize from next year.
Source: BSE
