Carborundum Universal's Q1 FY 2025-26 Quarterly Results

Result Summary

• Carborundum Universal Ltd reported a 2.0% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Jun (Q1 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 2.8%.
• Its expenses for the quarter were up by 10.9% QoQ and 9.6% YoY.
• The net profit decreased 57.6% QoQ and decreased 47.4% YoY.
• The earnings per share (EPS) of Carborundum Universal Ltd stood at 3.3 during Q1 FY 2025-26.

Financial Statments for Q1 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Carborundum Universal Ltd, commonly known as CUMI, is a part of the Murugappa Group and is headquartered in India. The company is a leader in the manufacture of abrasives, ceramics, and electro minerals, catering to a broad range of industries including automotive, steel, and construction. Carborundum Universal has a significant global presence, with operations in India, Russia, South Africa, and Australia, among others. The company has been known for its innovation-driven approach, leveraging its R&D capabilities to maintain a competitive edge in the market. As of the latest reports, there are no specific major developments disclosed beyond the provision of standard financial data.

Revenue

In the first quarter of the fiscal year 2026 (Q1FY26), Carborundum Universal Ltd reported a total income of ₹1237.75 crores. This reflects a quarter-over-quarter (QoQ) increase of 2.0% from the previous quarter (Q4FY25), where total income stood at ₹1213.73 crores. Comparing year-over-year (YoY) performance, there was a 2.8% increase from Q1FY25, which had total income of ₹1204.56 crores. This steady rise in total income suggests consistent revenue growth over both the quarterly and yearly periods, indicating resilience in the company's revenue-generating capabilities.

Profitability

The company's profitability metrics for Q1FY26 indicate a decline when compared against both the previous quarter and the same quarter of the previous year. Profit Before Tax (PBT) for Q1FY26 was reported at ₹77.60 crores, a significant decrease of 53.6% QoQ from ₹167.39 crores in Q4FY25, and a 46.8% decrease YoY from ₹145.87 crores in Q1FY25. Similarly, Profit After Tax (PAT) also decreased to ₹60.39 crores, down by 57.6% QoQ and 47.4% YoY. The Earnings Per Share (EPS) followed this downward trend, dropping to ₹3.30 in Q1FY26 from ₹7.10 in Q4FY25 and ₹5.90 in Q1FY25, marking a decline of 53.5% QoQ and 44.1% YoY. The decline in profitability metrics across these periods highlights a challenging quarter for the company in terms of maintaining profit margins.

Operating Metrics

Total expenses for Carborundum Universal Ltd in Q1FY26 were reported at ₹1160.15 crores, indicating a 10.9% increase QoQ from ₹1046.34 crores in Q4FY25 and a 9.6% increase YoY from ₹1058.69 crores in Q1FY25. This increase in total expenses exceeds the growth in total income, which may have contributed to the reduced profitability observed in the current quarter. Taxes for the quarter were ₹25.44 crores, which is 31.5% less than the previous quarter's tax of ₹37.12 crores and 40.7% less YoY from ₹42.89 crores in Q1FY25. Despite the reduction in tax expenses, the overall impact on net profit remained negative due to the higher increase in expenses relative to income. These operating metrics reflect the company's financial management and cost structures, providing insights into operational efficiency and financial planning across the observed periods.