Carborundum Uni. Q2 FY27 Results (NSE: CARBORUNIV)
Signal: Steady quarter
The read
The operating trajectory improved beneath the headline: consolidated revenue rose 13.2% YoY and underlying EBIT rose 23.4% with margin up 75bps, but reported PAT collapsed 83.8% because CAAG closure and restructuring charges of ₹8026 lakh absorbed most operating profit. Standalone results show the underlying risk more clearly, with gross margin down 291bps YoY despite 27.9% revenue growth.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,469.05 Cr | +13.2% | +3.0% |
| EBIT | ₹131.62 Cr | +23.4% | |
| Net profit | ₹12.04 Cr | -83.8% | |
| EPS | ₹0.66 | -83.2% | |
| EBIT margin | 9.0% |
P&L walk
Revenue rose to ₹146905 lakh, +13.2% YoY and +3.0% QoQ, while underlying EBIT increased to ₹13162 lakh, +23.4% YoY; the reported PAT of ₹1204 lakh, down 83.8% YoY, was dominated by the ₹8026 lakh CAAG exceptional charge.
Segments
Ceramics was the main earnings driver at ₹41027 lakh revenue and ₹10130 lakh result, while Abrasives contributed ₹60724 lakh revenue but only ₹4001 lakh result; Others remained loss-making at negative ₹409 lakh and consolidated results were further dragged by the ₹8026 lakh CAAG exceptional charge.
Key positives
- Consolidated revenue reached ₹146905 lakh, +13.2% YoY, while underlying EBIT rose 23.4% to ₹13162 lakh and EBIT margin expanded 75bps to 9.0%.
- Employee cost was nearly flat YoY at ₹24196 lakh, +0.2%, against 13.2% revenue growth, supporting a 32bps improvement in derived EBITDA margin to 13.3%.
- Ceramics generated ₹10130 lakh of segment result on ₹41027 lakh revenue, making it the largest disclosed contributor to consolidated segment earnings.
- Standalone revenue grew 27.9% YoY to ₹92080 lakh, while employee cost rose only 11.2% to ₹9028 lakh.
Key concerns
- Standalone gross margin compressed 291bps YoY to 54.1% as materials, purchases and inventory costs rose 36.6% to ₹42296 lakh, faster than revenue growth.
- Consolidated operating cash flow fell to ₹2600 lakh in H1FY27 from ₹11102 lakh, despite reported profit before tax before exceptional items of ₹25749 lakh.
- Others remained loss-making at negative ₹409 lakh of segment result, while the Abrasives segment produced only ₹4001 lakh result on ₹60724 lakh revenue.
Research and educational content only. Not investment advice.