Carborundum Universal Q2 FY27 Results Analysis: Normalized PAT Jumps 24%, Ceramics Surges 36% (CARBORUNIV)

Cofacto Research Published November 02, 2026 4 min read

Neutral

Carborundum Universal Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 1,469.05 Cr (+13.17% YoY) and PAT growth of -83.29% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	November 02, 2026
Revenue (Q2)	Rs. 1,469.05 Cr (+13.17% YoY)
PAT (Q2)	Rs. 12.45 Cr (-83.29% YoY)
EBITDA margin	12.99% (+49 bps YoY)
EPS (Q2)	Rs. 0.66 (-83.25% YoY)

Quarter Snapshot

Q2 FY27 delivered 13.17% revenue growth and 24.43% normalized PAT growth, with Ceramics (+36.06% YoY at a 24.69% margin) running ahead of its guidance band, while the Rs.80.26 Cr Awuko closure charge cut reported PAT to Rs.12.45 Cr. Growth targets are on track, but Abrasives (6.59%) and EMD (5.84%) margins sit well below their FY27 guidance bands and H1 cash conversion was weak (CFO/PAT 0.28x, FCF negative Rs.105.01 Cr). Key watch items for H2 are a steep margin recovery in Abrasives/EMD, a Foskor Zirconia resolution, and working-capital conversion.

Q2 FY27 Expectations vs Results

Driver	What happened	Verdict
Revenue "in-line to ahead", volume-led, vs 15% FY27 target	Q2 +13.17% YoY; H1 +14.96%	Played out
Margin compression from fuel spike (crude basket $116.09 in Sept)	EBITDA margin 12.99% (vs 10.22% Q1, 12.50% YoY); Ceramics 24.69%	Contradicted
Size any fresh Foskor/Awuko exceptionals; ~Rs.17 Cr/quarter Foskor drag	Awuko Rs.80.26 Cr exceptional booked; no Foskor provision; Foskor still inside EMD margin (5.84%)	Played out
US ceramics deferrals to unblock	Ceramics +36.06% YoY, margin 24.69%; strong order commentary	Played out
New CFO / PBIT-basis restatement watch	Press release used PBIT consistently; no restatement disclosed — basis unchanged in the filing	Not observable

Read our full results preview.

Management Guidance vs Delivery

What management said	Where	What happened	Verdict
Cons. sales growth 15% ex-Foskor/Awuko	Q1 FY27 call (10 Aug 2026)	H1 +14.96% as reported, including Foskor/Awuko	On Track
Cons. Abrasives growth 11–12% ex-Awuko	Q1 FY27 call	H1 +11.5% reported	On Track
Cons. Ceramics growth 23–25%	Q1 FY27 call	H1 +26.3%; Q2 +36.1%	On Track
Cons. EMD growth 8–9% ex-Foskor	Q1 FY27 call	H1 +14.0% reported (incl. Foskor decline)	On Track
Cons. Abrasives PBIT margin 9.5–10%	Q4 FY26 / Q1 FY27 calls	Q2 6.59%; H1 6.54%	Stretch
Cons. Ceramics PBIT margin 20.5–21% (higher end expected)	Q4 FY26 / Q1 FY27 calls	Q2 24.69%; H1 23.15% — above band	Met
Cons. EMD PBIT margin 9–9.5%	Q4 FY26 / Q1 FY27 calls	Q2 5.84%; H1 5.22% (Foskor inside)	Stretch
Capex ~Rs.400 Cr	Q1 FY27 call	H1 Rs.131.01 Cr (cash-flow basis) — H2-weighted; ~33% spent	On Track
"All three segments recorded double-digit growth" (standalone)		Abrasives +15.94%, Ceramics +37.18%, EMD +31.26%	Confirmed
Cons. sales Rs.1,455 Cr, +13.1%		Rs.1,469.05 Cr, +13.17%	Confirmed

Key Numbers, Quarter by Quarter

Metric	Q2 FY26	Q3 FY26	FY26	Q2 FY27
Cons. D/E	0.06	0.07	0.08	0.09

Key Investment Insights

Key Positives

Consolidated revenue grew 13.17% YoY to Rs.1,469.05 Cr; H1 up 14.96% YoY
Normalized PAT (ex-Awuko charge) grew 24.43% YoY to Rs.92.71 Cr; H1 normalized PAT Rs.169.11 Cr, +23.98%
PBIT grew 22.91% YoY to Rs.138.28 Cr with margin at 9.41% vs 8.67% a year ago
Ceramics revenue grew 36.06% YoY with PBIT margin at 24.69%, above the FY27 guidance band of 20.5-21%
EBITDA margin of 12.99% expanded YoY (12.50%) and vs Q1 ex-Sterling (8.46%) despite the fuel spike; power & fuel cost grew 6.95% vs 13.17% revenue growth
Standalone revenue grew 28.02% YoY with all three segments in double-digit growth (Abrasives +15.94%, Ceramics +37.18%, EMD +31.26%)
Abrasives consolidated segment result grew 20.81% YoY with margin improving to 6.59% from 5.67%
Growth targets (15% consolidated; Ceramics 23-25%; EMD 8-9% ex-Foskor; Abrasives 11-12% ex-Awuko) all On Track per management's Q1 FY27 call

Risk Factors

Reported PAT attributable to owners fell 83.29% YoY to Rs.12.45 Cr on the Rs.80.26 Cr Awuko closure charge
Abrasives PBIT margin of 6.59% (H1 6.54%) is ~300 bps below the 9.5-10% FY27 guidance band; EMD margin of 5.84% (H1 5.22%) is well below the 9-9.5% band
H1 CFO of Rs.26.00 Cr was 0.28x PAT (vs 0.82x YoY) with FCF of negative Rs.105.01 Cr on working-capital builds of Rs.248 Cr+
Electrominerals consolidated segment result fell 20.86% YoY with margin at 5.84% vs 8.20%, dragged by the Foskor Zirconia loss; no Foskor resolution announced
Rs.360.11 Cr of VAW (Russia) cash remains restricted under OFAC-SDN designation; company turned modestly net-debt ex-VAW at Rs.110.35 Cr
Forex drag materializing: unallocable expenses +37.85% YoY consolidated and OCI of negative Rs.26.78 Cr drove total comprehensive income to negative Rs.14.74 Cr