Carborundum Universal Ltd

ESG rating disclosure

• Crisil ESG Ratings assigned an ESG rating to Carborundum Universal Ltd.
• Rating report published on BSE and NSE websites.
• Company states it did not engage Crisil; rating based on public information.
• Upload timestamps: BSE 24 Aug 2026 07:44 PM; NSE 24 Aug 2026 08:07 PM.
• Crisil ESG Ratings & Analytics Limited is SEBI-registered ESG rating provider.
• No governance changes or financial implications disclosed.

Financial Performance

• Standalone sales 846 cr in Q1 FY'27; up from 698 cr (21.2%).
• Standalone PAT 88 cr; up from 77 cr; exclude 68 cr dividend from subsidiary.
• Consolidated sales 1,411 cr in Q1 FY'27; up 16.9% YoY; sequential 2%.
• Consolidated PAT 76 cr; up 23.4% YoY; Q4 FY'26 included 135 cr exceptional items.
• Consolidated PBIT 114 cr; up 40.9% YoY; sequential 102 cr in Q4 FY'26.
• Abrasives consolidated sales 610 cr; YoY +20.1%; sequential flat at 610 cr.
• Awuko: Q1 FY'27 sales 2.89m EUR; +11.1% YoY; loss after tax 1.69m EUR.
• CAPEX in Q1 FY'27: 53 cr; full-year FY'27 guidance: 400 cr.
• Debt-to-equity ratio at 0.05x.
• Ceramics consolidated sales 349 cr; +16.5% YoY; standalone 274 cr; +15.2%.
• Ceramics PBIT: Consolidated 74 cr; standalone 59 cr.
• Foskor Zirconia: Q1 FY'27 sales 107 million; -11.7% YoY.
• Consolidated CAPEX in Q1 FY'27: 53 cr; CAPEX guidance unchanged at ~400 cr for FY'27.

Segment Performance

• Electrominerals consolidated sales 473 cr; +16.8% YoY; standalone 282 cr; +33%.
• Rhodius sales 15.6m EUR; YoY +18%; INR 172 cr; +33.9% YoY.
• Abrasives standalone sales 328 cr; +14.7% YoY; sequential -6.9% due to seasonality.
• Foskor Zirconia: Q1 FY'27 sales 107 mn; -11.7% YoY; divestment options explored.
• Ceramics consolidated sales 349 cr; +16.5% YoY; standalone 274 cr; +15.2%.
• Ceramics margins: consolidated 20.5%-21%; standalone 59-62? (contextual).

Capex and Liquidity

• Consolidated CAPEX in Q1 FY'27: 53 cr; guidance persists.
• Unallocable expenses: Q1 FY'27 19 cr consolidated; FX losses partially offset by others.
• Debt-to-equity ratio 0.05x; CAPEX program proceeding on plan.

Guidance and Outlook

• Consolidated Sales growth guidance for FY'27: about 4% to 4.5%.
• Excluding Foskor Zirconia and Awuko (INR 343 cr FY'26), comparable growth 11% to 12%.
• Growth could be 15% without Foskor and Awuko in both periods.
• Abrasive margins guidance: 9.5% to 10% for FY'27.
• Ceramics margins guidance: 20.5% to 21% for FY'27.
• Electrominerals margins guidance: 9% to 9.5% for FY'27.
• CAPEX guidance: ~Rs 400 crores in FY'27.
• SOFC Ceramics and Metallized Cylinders: revenues to start FY'28; SOFC peak FY'30.

Q&A Highlights

• Abrasives: growth primarily volume-driven; price increases small; China import benefits easing; FX headwinds.
• Ceramics: growth optimism across Wear, Engineered Ceramics; exports aiding Metz Cylinders and related segments.
• Foskor divestment: options explored; target close by Q2; update next quarter.
• VAW Russia: remains domestic-centric; geopolitical uncertainty; stay compliant.
• Inter-segment revenue: removed; no impact on reported growth.
• SCOMET ballistic ceramic approvals: standards met; product qualification ongoing.

Risks and Watchpoints

• Geopolitical and supply-chain volatility; FX fluctuations and fuel-cost headwinds.
• Divestment execution risk for Foskor Zirconia; potential regulatory or buyer delays.
• Reliance on export markets; currency movements affecting INR realizations.
• Uncertain timelines for SOFC and Metallized Cylinder programs; execution risk.
• Capital-allocation decisions contingent on quarterly traction and order-book evolution.

Meeting Details

• Date: August 10, 2026.
• Type: group earnings conference call; mode: virtual.
• Event/organiser: Carborundum Universal Q1 FY'27 Earnings Conference Call, organized by DAM Capital Advisors Limited.
• Purpose: earnings discussion and investor Q&A.
• Recording: conference is being recorded; transcript and audio available.

Participants

• Key company participants: Managing Director; Advisor.
• Moderator: DAM Capital Advisors Limited.

Availability

• Transcript available on company website; audio recording uploaded.

Meeting Details

• Date and time: 10 August 2026, 11:00 IST.
• Type and mode: Investor call; mode not specified.
• Organizer/Event: Carborundum Universal Ltd, Investor Call.
• Key participants: Company Secretary.
• Purpose: share audio recording of the investor call.
• Availability: audio recording uploaded to company website.

Capital / Securities

• On 7 August 2026, allotted 6,882 equity shares under ESOP Plan 2016.
• Outstanding equity shares: 19,05,05,384; paid-up capital: Rs. 19,05,05,384.

AGM Details

• Date and time: 7 Aug 2026, 03:00 PM.
• Mode: VC/OAVM.
• Meeting concluded: 04:20 PM.
• Remote e-voting available; on-site voting during AGM.
• Quorum present; meeting conducted by Chairman.
• Documents circulated electronically; physical copies on request.

Resolutions Put to Vote

• Ordinary: Adoption of standalone financial statements for year ended 31 March 2026.
• Ordinary: Adoption of consolidated financial statements for year ended 31 March 2026.
• Ordinary: Final dividend of Rs 2.50 per share and interim dividend of Rs 1.50.
• Ordinary: Re-appointment of Mr. Muthiah Murugappan (Director retiring by rotation).
• Ordinary: Commission payable to Chairman for FY 2026-27.
• Ordinary: Ratification of remuneration to Cost Auditors for FY 2026-27.

Voting status

• Voting results not declared at filing; to be announced within two working days.
• Results to be posted on company website and NSDL and sent to stock exchanges.

Director & Auditor Actions

• Re-appointment of Mr. Muthiah Murugappan as director (retiring by rotation).
• Approval for payment of commission to Chairman for FY 2026-27.
• Remuneration ratified for Cost Auditors for FY 2026-27 (Rs 5,00,000 p.a.).

Financial highlights

• Standalone revenue from operations: Rs 85,501 lakh for quarter ended 30/06/2026.
• Consolidated revenue from operations: Rs 141,057 lakh for quarter ended 30/06/2026.
• Standalone net profit: Rs 8,784 lakh for the quarter.
• Consolidated net profit after tax: Rs 7,640 lakh for the quarter.
• Standalone PAT: Rs 88 crore; Consolidated PAT: Rs 76 crore.
• Consolidated debt-to-equity ratio: 0.05.
• Q1 FY27 capex: Rs 54 crore.

Strategic/operational developments

• Wind-down approved for CAAG (Germany) due to underperformance.
• Foskor Zirconia (Pty) Ltd, South Africa, winding down; assets on realisable value basis.
• Volzhsky Abrasive Works impairment recognized in prior years; liquidity constraints persist.
• Gain of Rs 2,518 lakh from Sterling Abrasives lease rights transfer.
• 1,000 equity shares issued on exercise of Employee Stock Options.

Governance and reporting

• Audit Committee reviewed and Board approved the results.
• PwC reviewed the standalone and consolidated results.

Financial results approved

• Unaudited standalone results for quarter ended 30 June 2026 approved.
• Unaudited consolidated results for quarter ended 30 June 2026 approved.
• Limited Review Reports on standalone and consolidated results submitted.
• Press release extract to be published in English and Tamil newspapers.
• Detailed standalone and consolidated results to be published on company and exchange websites.

Key financial highlights

• Standalone revenue 85,501 lakhs; standalone net profit 8,784 lakhs for Q1 FY27.
• Consolidated revenue 141,057 lakhs; consolidated net profit 7,640 lakhs for Q1 FY27.
• Standalone PAT approximately Rs 88 crores; consolidated PAT approximately Rs 76 crores.
• Q1 FY27 capex Rs 54 crores; debt-equity ratio 0.05.

Regulatory and impairment updates

• Audit Committee approved results; PwC review reports unmodified.
• Impairment and wind-down notes: CAAG and Foskor Zirconia; VAW impairment.
• OFAC designation and liquidity impact; impairment recognised in prior years.
• Cash and cash equivalents of VAW Rs 36,090 lakhs not available due to repatriation restrictions.

Subsidiaries wind-down and related actions

• CAAG winding up approved by CUMI International Limited; not material to Group.
• Foskor Zirconia impairment; winding down reflected in prior year.
• Lease-rights gain of Rs 2,518 lakhs from Sterling Abrasives.

Other notable actions

• 1,000 equity shares allotted under Employee Stock Options in quarter.