Carborundum Universal Q2 FY27 Earnings Call Transcript

Event Type: Q2 FY '27 Earnings Conference Call hosted by Kotak Securities
Date and Time: November 03, 2026 (time not specified in transcript)
Purpose: Discussion of quarterly results and business performance for Q2 FY27
Management Participants: Mr. Sridharan Rangarajan (Managing Director), Mr. Sriram Seshadri (Chief Financial Officer), Mr. G. Chandramouli (Advisor)
Moderator: Mr. Kartik Kohli from Kotak Securities
Availability: Transcript was made available on the company's website at https://www.cumi-murugappa.com/wp-content/uploads/2026/11/KotakSec-Carborundum-Nov03-2026_clean.pdf
Compliance: Standard forward-looking statements disclaimer was provided at the beginning of the call

Sales: INR 911 crores (28% YoY growth from INR 712 crores, 7.7% QoQ growth from INR 846 crores)
H1 FY27 Sales: INR 1,757 crores (24.6% growth from INR 1,410 crores)
PAT: INR 72 crores (12.4% YoY growth from INR 64 crores, but dropped from INR 88 crores in Q1)
Segment-wise growth (YoY): Ceramics 37.2%, Electrominerals 31.3%, Abrasives 15.9%

Sales: INR 1,455 crores (13.1% YoY growth from INR 1,287 crores, 3.1% QoQ growth from INR 1,411 crores)
H1 FY27 Sales: INR 2,865 crores (14.9% growth)
PBT before exceptional items: INR 138 crores (22.9% YoY growth from INR 113 crores)
PAT after non-controlling interest: INR 12 crores (down from INR 75 crores YoY due to INR 80.3 crore exceptional item)

Ceramics:

Standalone: INR 313 crores (37.2% YoY growth)
Consolidated: INR 410 crores (36.1% YoY growth)
Growth driven by industrial ceramics, refractory business, metallized cylinders, engineered ceramics, SOFCs, and wear ceramics

Electrominerals:

Standalone: INR 279 crores (31.3% YoY growth)
Consolidated: INR 443 crores (11.1% YoY growth)
Strong demand from refractory and abrasive customers domestically and internationally

Abrasives:

VAW Russia: Sales RUB 1.55 billion (flat YoY), PAT RUB 98.7 million (down from RUB 222 million YoY)
Foskor Zirconia: Determined commercially unviable, sales ZAR 53 million with loss of ZAR 24 million in Q2
RHODIUS Abrasives: Sales EUR 14.5 million (down 16.8% YoY), loss EUR 0.3 million (improved from EUR 0.6 million loss YoY)
AWUKO Abrasives: Closure process ongoing, exceptional item of INR 18.3 crore recognized in Q2, sales EUR 1.1 million

Management revised FY27 guidance:

Consolidated Sales Growth: Maintained at 15% (previously 4-4.5% before excluding Foskor and AWUKO)
Ceramics Growth: Revised upward to 25-28% (from 23-25% previously, and initial 15-15.5%)
Electrominerals Growth: Maintained at 9-10% (excluding Foskor)
Margin Guidance:
Abrasives: 8-8.5% (from 9.5-10% previously)
Ceramics: 22.5-23.5% (from 20.5-21% previously)
Electrominerals: 9-9.5% (maintained)
Capex: INR 400 crores maintained

Strong operational performance with segment results growing 36% at consolidated level in H1
Progress on closure of AWUKO and Foskor Zirconia
All growth programs on track, capex programs progressing
Cost pressures in Abrasives due to higher fuel prices and input costs (phenol, resins)
Working capital increased due to receivables and inventory buildup for higher H2 growth

Semiconductor equipment components: INR 66 crores capex already incurred, revenue expected from FY28, peak potential of INR 300-350 crores by FY30
Electronic substrate program: Trials and first articles completion expected in current year
Armor line: INR 50 crores capex planned
Thin wheel facility in Hosur: Qualification process ongoing with 6-7 major international customers

The document is a transcript of the earnings conference call
The transcript includes full Q&A session with analysts from various institutions
Exceptional items of INR 80.3 crores related to AWUKO closure impacted consolidated PAT
Management expects working capital reversal in H2 FY27