Carborundum Universal Limited (CUMI) reported a strong financial performance for the fiscal year ended March 31, 2026. The company achieved standalone sales of ₹3,024 crore, reflecting an 8.6% growth, and a consolidated sales figure of ₹5,149 crore. While consolidated profitability faced an impact from exceptional items related to the closure of international subsidiaries, the core business segments demonstrated resilient growth, with the Board recommending a final dividend of ₹2.50 per share.
Financial Performance Highlights
For the financial year 2025-26, Carborundum Universal delivered a strong performance. Standalone sales reached ₹3,024 crore, marking an 8.6% increase over the previous year. The company’s standalone profit after tax rose to ₹416 crore, compared to ₹322 crore in the previous fiscal year. On a consolidated basis, the company clocked sales of ₹5,149 crore, representing a growth of 6.5%.
Segmental Growth Drivers
The company’s growth was driven by its diverse business segments:
- Electrominerals: Remained a primary growth engine, recording a standalone growth of 11.1% for the full year.
- Ceramics: Contributed significantly with a 9.3% growth at the consolidated level, led by strong performance in the Engineered Ceramics and Refractories segments.
- Abrasives: Delivered steady results, with the standalone business growing by 6.2% for the full year.
Strategic Realignment and Exceptional Items
In FY26, the company recorded exceptional items before tax of ₹135 crore. This primarily pertains to the voluntary winding-up of CUMI AWUKO Abrasives GmbH (CAAG) in Germany, which accounted for ₹119 crore, and a realizable value accounting impact of ₹16 crore related to Foskor Zirconia (Pty) Ltd (FZL) in South Africa. These decisions were made in response to continued operational underperformance and challenging market conditions, ensuring the group remains focused on sustainable and profitable growth areas.
Dividend Declaration
Recognizing the company’s performance, the Board of Directors has recommended a final dividend of ₹2.50 per equity share (250% on a face value of ₹1). Combined with the interim dividend of ₹1.50 per share paid in February 2026, the total dividend for the year stands at ₹4.00 per share, consistent with the previous year’s total payout.
Future Outlook
Despite the challenges faced by international subsidiaries, the standalone business continues to demonstrate strong momentum. The company remains committed to expanding its high-margin, value-added product portfolio and leveraging its leadership position in the abrasives, ceramics, and electrominerals sectors across domestic and international markets.
Source: BSE
