Carborundum Universal Q3 profit more than doubles despite lower margins; dividend declared

Carborundum Universal Ltd reported a sharp rise in net profit for the third quarter, even as operating performance remained under pressure.

Net profit for the quarter stood at ₹75.9 crore, a more than a two-fold rise over ₹34.7 crore in the same period last year.

Revenue grew 2.8% year-on-year to ₹1,290 crore, compared with ₹1,255 crore in Q3FY25.

However, EBITDA declined 11% to ₹157.5 crore from ₹177 crore a year ago. As a result, EBITDA margin narrowed to 12.2% from 14.1% in the year-ago 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.

The company informed that the implementation of the 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 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.

Also Read: India should think less on tariffs, more on opportunities to boost trade: World Bank’s Ajay Banga

The company informed that geopolitical risks and international sanctions continue to weigh on the operations of its step-down subsidiary, Volzhsky Abrasive Works (VAW) in Russia, which was added to the US OFAC Specially Designated Nationals list in January 2025. As a result, 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.

However, 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, and the company said it continues to monitor the evolving situation.

Also Read: Who controls critical minerals could control the energy transition: Economic Survey 2026

Shares of Carborundum Universal Ltd fell 3.55% to ₹804.80 on the NSE in Thursday’s trade, down ₹29.60.