Carborundum Universal Ltd reported a sharp rise in net profit for the third quarter, with net profit standing at ₹75.9 crore, representing a more than two-fold increase over ₹34.7 crore in the same period last year. According to reports from CNBC TV18, revenue grew 2.8% year-on-year to ₹1,290 crore, compared with ₹1,255 crore in Q3FY25. The company's profit growth came despite operational challenges during the quarter, with EBITDA declining 11% to ₹157.5 crore from ₹177 crore a year ago, and EBITDA margin narrowing to 12.2% from 14.1% in the year-ago period.
Despite the profit growth, the company faced operational challenges during the quarter. EBITDA declined 11% to ₹157.5 crore from ₹177 crore a year ago, with EBITDA margin narrowing to 12.2% from 14.1% in the year-ago period. As reported by CNBC TV18, the implementation of new labour codes led to an increase of ₹432 lakh in provisions for defined benefit obligations and other long-term employee benefits, which has been recognised as an employee benefits expense in the current reporting period.
The board declared an interim dividend of 150%, amounting to ₹1.50 per equity share of face value ₹1. The record date to determine eligible shareholders has been fixed as Wednesday, February 4, 2026.
Geopolitical risks and international sanctions continue to weigh on the operations of the company's step-down subsidiary, Volzhsky Abrasive Works (VAW) in Russia, which was added to the US OFAC Specially Designated Nationals list in January 2025. As reported by CNBC TV18, VAW faces restrictions on US-linked transactions, with its assets and interests in property subject to blocking under US sanctions. Following a detailed assessment, Carborundum recognised an impairment charge of ₹10,413 lakh in the December 2024 quarter, with no additional impairment required in the current period. Cash and cash equivalents of ₹26,125 lakh held by VAW as of December 31, 2025 remain unavailable to the group due to repatriation restrictions, according to reports from CNBC TV18.
The Murugappa Group, which owns the company, said it is monitoring the finalisation of central and state rules and government clarifications, and will adjust the accounting treatment as further guidance emerges. The company continues to monitor the evolving situation regarding its Russian subsidiary and the impact of labour code implementation on operational performance.
Shares of Carborundum Universal Ltd fell 3.55% to ₹804.80 on the NSE in Thursday's trade, down ₹29.60, as reported by CNBC TV18. The company continues to monitor the evolving situation regarding its Russian subsidiary and the impact of labour code implementation on operational performance.
