Carborundum Universal Limited (CUMI) reported robust growth for FY26, with standalone sales crossing INR 3,000 crore, representing an 8.6% growth. The company saw a strong rebound in the second half of the year, particularly in Q4. Despite challenges from loss-making subsidiaries, CUMI has successfully initiated a turnaround, including the closure of its German subsidiary Awuko and asset write-downs for Foskor Zirconia, setting a solid foundation for its Aspiration 2030 strategy.
Financial Highlights
For the full financial year FY26, CUMI achieved standalone sales of INR 3,024 crore compared to INR 2,784 crore in FY25. Standalone profit after tax reached INR 416 crore, a 29.4% year-on-year increase. Consolidated sales also hit a milestone, surpassing INR 5,000 crore to reach INR 5,149 crore. The second half of the year (H2 FY26) was particularly strong, with standalone sales reflecting a sequential growth of 14.4%.
Segmental Performance
Growth was broad-based across segments. The Electrominerals segment grew by 11.1% on a standalone basis, while the Ceramics segment saw 6.5% growth. The Abrasives segment also grew by 6.2%. The consolidated business performance was impacted by exceptional items totaling INR 135 crore, primarily related to the voluntary winding-up of Awuko Abrasives in Germany and asset write-downs at Foskor Zirconia in South Africa, both of which were deemed commercially unviable.
Strategic Outlook: Aspiration 2030
The company launched its Aspiration 2030 vision, focusing on high-performance organization, innovation, and digital/ESG integration. Key growth drivers include:
- Semiconductor & Electronics: Expansion into high-growth areas like wafer fab equipment and electronic substrates.
- Clean Energy: Strategic focus on the SOFC (Solid Oxide Fuel Cell) market, supported by new pilot facilities.
- Defence & Aerospace: Production of advanced Ceramics for ballistic protection and vehicle armor.
- Manufacturing Excellence: Continued investment in capacity, with INR 309 crore spent on CAPEX in FY26 and a planned INR 400 crore for FY27.
Growth Guidance
Looking ahead to FY27, management expects consolidated sales growth in the range of 4% to 4.5%, noting that comparable growth—excluding the divested Foskor and Awuko units—is projected at 11% to 12%. The company remains net debt-free with strong free cash flow, positioning it to fund future technological advancements in graphene, nitrides, and HPSiC (High-Purity Silicon Carbide).
Source: BSE
