Carborundum Universal Q2 FY27 results: net profit down 83.8% to ₹12.04 crore, revenue up 13.2%

How did Carborundum Universal perform in Q2 FY27?

Carborundum Universal reported consolidated revenue of ₹1,469 crore for Q2 FY27, up 13.2% from ₹1,298 crore in Q2 FY26 and 3.0% from ₹1,427 crore in Q1 FY27. EBITDA rose 17.7% year on year to ₹184.14 crore, and the margin increased by 0.5 percentage points to 12.5% from 12.0%.

Net profit fell to ₹12.04 crore from ₹74.26 crore in the year-ago quarter and ₹80.34 crore in the previous quarter. Basic EPS was ₹0.66, against ₹3.94 in Q2 FY26 and ₹4.04 in Q1 FY27. On a standalone basis, revenue was ₹920.80 crore, up 27.9%, while net profit was ₹72.29 crore against ₹64.34 crore.

What changed in Carborundum Universal's costs and profit?

Total expenses increased 12.2% year on year to ₹1,355.81 crore, with cost of materials up ₹64.32 crore to ₹525.52 crore and other expenses up ₹66.03 crore to ₹462.35 crore. Employee cost rose ₹0.60 crore to ₹241.96 crore, finance costs increased ₹2.14 crore to ₹6.57 crore, and depreciation rose ₹2.10 crore to ₹64.33 crore.

Other income increased by ₹1.49 crore to ₹18.38 crore. The reported result included an exceptional charge of ₹80.26 crore, while both Q2 FY26 and Q1 FY27 had no exceptional item. Tax expense rose ₹7.73 crore year on year to ₹45.98 crore, and profit before tax fell ₹55.28 crore to ₹51.36 crore.

How did the first half of FY27 go?

For the first half of FY27, consolidated revenue was ₹2,895.68 crore, up 15.0% from ₹2,517.1 crore in H1 FY26. Total income rose 15.9% to ₹2,958.76 crore from ₹2,552.72 crore. Profit before tax fell 13.2% to ₹159.85 crore from ₹184.24 crore.

Net profit declined 31.4% to ₹92.38 crore from ₹134.65 crore, while EPS fell 34.9% to ₹4.70 from ₹7.22. The half-year figures therefore showed higher revenue but lower profit than a year earlier.

What do the balance sheet and cash flow show?

Total assets were ₹5,438.42 crore at 30 September 2026, against ₹5,290.55 crore at 31 March 2026, while total equity rose to ₹4,044.53 crore from ₹4,008.3 crore. Borrowings increased to ₹361.54 crore from ₹304.97 crore and cash declined to ₹611.3 crore from ₹697.88 crore. Inventories rose to ₹1,182.51 crore from ₹1,117.15 crore, trade receivables to ₹974.05 crore from ₹890.78 crore, and trade payables to ₹504.87 crore from ₹422.04 crore.

In H1 FY27, operating cash flow was ₹26.0 crore, compared with ₹111.02 crore in H1 FY26. Investing cash flow was negative ₹80.68 crore against negative ₹134.18 crore, while financing cash flow was negative ₹30.3 crore against ₹82.73 crore. Capital expenditure was ₹128.53 crore, compared with ₹159.82 crore a year earlier.

How has Carborundum Universal done over the last 8 quarters?

Revenue increased year on year in each of the last eight quarters and reached ₹1,469.05 crore in Q2 FY27, the highest level in the reported series. Profit was less consistent, falling to a net loss of ₹40.01 crore in Q4 FY26 before recovering to ₹80.34 crore in Q1 FY27 and easing to ₹12.04 crore in Q2 FY27. The EBITDA margin reached its low of 9.5% in Q1 FY27 and rose to 12.5% in the latest quarter.

Which businesses drove the quarter?

Ceramics was the fastest-growing reported segment, with revenue up 36.1% to ₹410.27 crore and EBIT of ₹101.3 crore against ₹62.48 crore. Its EBIT margin was 24.7%. Abrasives revenue rose 4.0% to ₹607.24 crore, while EBIT increased to ₹40.01 crore from ₹33.12 crore; the segment's EBIT margin was 6.6%.

Electrominerals revenue increased 11.1% to ₹443.02 crore, while EBIT fell to ₹25.88 crore from ₹32.7 crore; its EBIT margin was 5.8%. Others recorded revenue of ₹50.78 crore, up 1.7%, and an EBIT loss of ₹4.09 crore against EBIT of ₹0.84 crore, with an EBIT margin of negative 8.1%.

What else did the company announce?

The board approved the unaudited consolidated and standalone results for the quarter and half year ended 30 September 2026, along with the limited review report of Price Waterhouse Chartered Accountants LLP. The same-day filing also updated the closure of CUMI Awuko Abrasives GmbH, which entered agreements in October 2026 to sell all property, plant and equipment and inventory for an aggregate consideration of Rs. 534 lakhs and entered into a reconciliation of interest and social plan with its employees. The unit was proceeding with final liquidation and de-registration under German law. The excerpts did not report a dividend, fund raise or appointment.

What did the auditors point out?

The limited review report included an emphasis of matter concerning the assessment of VAW's liquidity, going-concern position, control over the entity and recoverability of asset carrying values. The filing stated that an impairment expense of Rs.10,413 lakhs had been recognised in prior years and that no additional impairment was deemed necessary for the current period.

The excerpts also recorded CAAG's non-going-concern basis and an exceptional-items charge of Rs. 11,856 lakhs in the consolidated results for the year ended March 31, 2026, representing write-downs of assets and restructuring costs. They stated that CAAG was not a material subsidiary and that its winding down was not expected to adversely affect the Group's overall business operations. No qualified opinion is stated in the supplied excerpts.

How did Carborundum Universal shares react?

After the filing appeared after market, the stock was up 5.3% after five minutes, 5.1% after 15 minutes and 8.0% after 30 minutes. It closed the reaction day 2.4% above its pre-results close of ₹1,079.9, and by the next day's close it was up 1.2% from that close. The Abrasives & Bearings industry's other stocks had a median reaction-day move of 0.4%, leaving Carborundum Universal 2.0 percentage points ahead; the next-day median was 1.0%, leaving a 0.2 percentage point gap.

Earlier reaction-day moves were mixed: the stock rose 4.5% on 7 August 2026 and 6.2% on 14 May 2026, while it fell 3.5% on 7 August 2025 and 3.0% on 30 October 2025. These are historical price movements and do not indicate the direction of the next session.