Carborundum Universal Limited (CARBORUNIV)
Large CapIndustrials stocks · Large cap · NSE
Carborundum Universal Limited (CUMI) is an Indian manufacturer of abrasives, ceramics, and electrominerals. The company has a global presence and is focusing on advanced materials for emerging sectors like semiconductors, aerospace & defense, and clean energy, while also optimizing its core businesses.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, while price trend supports entry. This looks more like momentum/speculation than a clean fundamental investment setup.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Good · 57/100Rev +17% YoY · PAT +33% YoY · operating leverage · margin compression
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,427 Cr | +17.1% | +2.1% |
| EBITDA | ₹135 Cr | +11.6% | -6.3% |
| Operating margin | 9.0% | -100 bps | -100 bps |
| PAT | ₹80 Cr | +33.3% | NDF |
| PAT margin | 5.6% | +69 bps | +847 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
CUMI reports strong H2 and Q4 FY26 rebound in standalone sales and PAT, driven by Electrominerals and Ceramics. Consolidated PBT declined due to losses from divested subsidiaries, but management expects significant margin improvement post-restructuring.
The company's decisive actions to wind down loss-making foreign subsidiaries (Awuko, Foskor Zirconia) are positive for future profitability. Strong standalone performance and a broad-based H2 FY26 recovery across segments, coupled with strategic investments in high-growth advanced materials, support the long-term thesis, despite short-term consolidated PBT decline.
Electrominerals Revenue by Product Category (Current)
Latest issuer-disclosed distribution across 3 reported categories.
Semiconductor Wafer Fab Equipment Components
Commissioned an exclusive facility for advanced components for semiconductor wafer fabrication equipment. Serial supplies of qualified products will commence in FY27, with gradual ramp-up.
Aerospace & Defense Ceramics
Commissioned a new facility for advanced Ceramics for ballistic protection. Secured STANAG 4 qualification for vehicle armor and BIS Threat Level 5 & 6 for personnel protection.
SOFC Segment (Engineering Ceramics)
Engineering Ceramics segment grew by 30%, driven by the SOFC segment, which is seeing strong demand in the AI-driven data center segment. Management expects substantial growth.
Exports in Electrominerals
Exports grew by 100% from FY25 to FY26, now contributing over 33% of total sales (vs. 11% in FY25), driven by existing OEM relationships and anti-dumping duties against Chinese grains.
Semiconductor Wafer Fab Equipment Components Facility
Commissioned first module with INR 66 crores CAPEX. End-to-end capability from high purity powders to precision machining. Serial supplies in FY27, gradual utilization ramp-up. Further expansions planned.
Aerospace & Defense Ceramics Facility
Commissioned new facility with INR 49 crores outlay for advanced Ceramics for ballistic protection. Business expected to scale up high by 2030.
White Fused Alumina (WFA) Furnace Upgrade
Upgradation of existing WFA furnace from 2 MVA to 4.5 MVA with INR 53 crores CAPEX. Will substantially increase existing capacities, with maximum revenue potential of INR 95 crores.
Thin Wheel Capacity (Hosur)
Commissioning of thin wheel capacity at Hosur using DRONCO assets. Total CAPEX outlay INR 83 crores, can produce 46 million thin wheels with peak revenue of INR 120 crores.
Rebound in Festival Season Demand
Rebound in festival season demand provided a growth impetus, particularly for Abrasives in H2 FY26.
GST Rate Rationalization
Implementation of GST rate rationalization provided a growth impetus for Abrasives.
Anti-Dumping Duties on Chinese Grains
Anti-dumping duties against Chinese grains by EU helped drive stronger growth in Electrominerals exports.
China's Export Rebate Removal on Abrasives
China removed export rebate on Abrasive products (9% to 0%) from April. Management believes this is good for the domestic industry and will help growth.
Sanctions on VAW Russia
Lower sales and profits at VAW Russia due to USA sanctions. Sales declined 35.3% in rouble terms in FY26. No alternate solution for export beyond Russia currently.
Logistics Transition Impact (Rhodius)
Rhodius Abrasives sales declined 8.8% in FY26 (EUR 61M vs EUR 67M) due to a EUR 5 million sales loss from a Q1 FY26 transition to a new third-party logistics partner.
Underperformance of Subsidiaries
Continued underperformance and mounting losses at Awuko Abrasives and Foskor Zirconia led to their winding down, impacting consolidated PBT significantly.
Production Challenge in Metallized Cylinder Business
Metallized Cylinder business growth was impacted by a production-related challenge in H1 FY26, which was addressed by Q4.
Geopolitical Sanctions
Ongoing sanctions on VAW Russia continue to restrict its operations and export capabilities, with no immediate alternative solution identified.
Global Competition & Input Costs
Escalation in electricity and other input costs, coupled with intensifying global competition and foreign exchange fluctuations, rendered Foskor Zirconia unviable.
New Product Qualification Timelines
Material qualification process for Ceramic components for wafer fab equipment is long (4-6 years). Material revenue generation expected only from 2029 onwards.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The company experienced a muted H1 FY26, followed by a strong rebound in H2 and Q4. Comparing both YoY and QoQ provides a comprehensive view of the full-year performance and the recent sequential momentum, which is crucial for assessing the recovery and future trajectory.
Standalone Sales Growth (FY26 YoY)
Standalone sales in FY26 was INR 3,024 crores compared to INR 2,784 crores in FY25, a growth of 8.6%. The company crossed INR 3,000 crores in standalone revenue.
Consolidated Sales Growth (FY26 YoY)
Consolidated sales was INR 5,149 crores in FY26, a growth of 6.5% over INR 4,833 crores in FY25. The company surpassed INR 5,000 crores in consolidated revenue.
Standalone PAT Growth (FY26 YoY)
Standalone PAT was INR 416 crores in FY26, compared to INR 322 crores in FY25, reflecting a growth of 29.4% YoY. Q4 FY26 PAT doubled to INR 122 crores from INR 61 crores in Q4 FY25.
Consolidated PBT (before exceptional items) Growth (FY26 YoY)
Consolidated PBT before exceptional items and taxes stood at INR 416 crores compared to INR 572 crores in FY25, reflecting a drop of 27.2% YoY, mainly due to VAW, Foskor, Awuko, and Rhodius.
Aspiration 2030 Strategy
Launched Aspiration 2030 focusing on high-performance organization, ambitious growth, innovation, new opportunities, manufacturing excellence, sales & marketing, and digital/ESG initiatives.
R&D Investment Increase
Current R&D spend of ~1% needs to increase to 2-3% to strengthen R&D teams, new product development processes, and accelerate CAPEX/OPEX spend.
Focus on Transformational Products
Investing in SOFC powders, Nitrides, HPSiC, and Graphene, expecting them to contribute ~10% of revenue by 2030 from current negligible levels, creating a new leg of growth.
FY27 Consolidated Sales & Margin Guidance (Ex-Divestments)
Comparable consolidated sales growth of 11-12% (excluding Awuko & Foskor). Abrasives margin 9.5-10% (vs. 7.9% ex-Awuko FY26). Electrominerals margin 9-9.5% (vs. 9.1% ex-Foskor FY26).
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Consolidated Sales Growth (Ex-Divestments) | FY27 guidance: 11-12% | Achievement of targeted growth, indicating successful integration of divested entities' impact and core business expansion. |
| Consolidated Abrasives PBIT Margin (Ex-Awuko) | FY27 guidance: 9.5-10% (vs. 7.9% in FY26) | Improvement in profitability as loss-making Awuko is wound down and cost optimization programs take effect. |
| Consolidated Electrominerals PBIT Margin (Ex-Foskor) | FY27 guidance: 9-9.5% (vs. 9.1% in FY26) | Stability or slight improvement in margins after the closure of Foskor Zirconia, despite ongoing VAW challenges. |
| FY27 CAPEX | INR 400 crores planned | Execution of planned CAPEX for Advanced Ceramics, BFA expansion, thermal spray powders, and Zirconia furnace, indicating progress on growth engines. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
65Bullishfull bull SMA stack · SMA20 +4.7% / mo · MACD −
Technical chart
CARBORUNIVdaily · 1Y · AUTO+39.0%Daily technical trend read
Bullish setupTrend is constructive — long-term uptrend intact. RSI 54.
- Price > SMA20 > SMA50 > SMA200 — full bullish stack.
- SMA20 rising (~4.5% over last month) — short-term momentum positive.
- RSI(14) at 54 — rising, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 13% off 52W high · 54% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is 14.3% above the 30-week proxy.
- The 50-DMA is above the 30-week proxy and its slope is rising +4.5%.
- Both 3-month and 6-month returns are positive.
Valuation & score drivers
U-Score 22 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 22 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 7/9.
- Balance sheet contributes 8/15 to the score.
- Cash flow contributes 4/10 to the score.
Main drags
- Fair-value margin of safety is negative at -1652.6%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Quality is weaker at 0/20; verify the latest quarterly trend.
Blended valuation: PE, EV/EBITDA, FCF yield, and balance-sheet checks
For this sector, IndiaPulse uses a blended lens rather than relying on a single valuation ratio.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 59th percentile of the scored universe and 56th percentile within Industrials. Main check: financial discipline is weak at 42/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: 2 latest quarters had PAT decline worse than 25% YoY.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Industrials: 56th pctile, median 68 · Large: 35th pctile, median 73
53 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 0.9%.
- ▸10 years of positive FCF.
- ▸4/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸2 latest quarters had PAT decline worse than 25% YoY.
- ▸ROE is low at 6.9%.
- ▸ROCE trend is -5.2%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 85.90
- P/B
- 5.52
- EV/EBITDA
- 25.95
- Market Cap
- 21539.00Cr
Profitability
- ROE
- 6.92%
- ROCE
- 10.50%
- ROA
- 3.57%
- Dividend Y
- 0.35%
Growth (CAGR)
- Revenue 5Y
- 15.00%
- EPS 5Y
- -3.00%
- Revenue 3Y
- 4.00%
- EPS 3Y
- -14.00%
Balance Sheet
- Debt/Equity
- 0.11
- Interest Coverage
- 28.24×
- Altman Z
- 8.70
- Book Value
- 205.00
Cash Flow
- FCF Yield
- 0.93%
- FCF Positive Y
- 10/5
- OCF
- 367.00 Cr
- EPS TTM
- 10.99
Shareholding
- Promoter Hold
- 38.90%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 69%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
Business-comparable names in Industrials, ranked by similarity
Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.