Carborundum Universal (CU IN) – Q1FY27 Result Update – Mixed Q1, Ceramics lead the way ahead – Upgrade to ‘HOLD’
Published on 10 Aug 2026
Management retained its FY27 capex guidance at Rs4bn, focused on advanced ceramics, power electronics, substrates, metallized tubes/rings, thermal spray powders and zirconia furnace grain. Overall, management expects ~15%YoY revenue growth excluding Awuko and Foskor, with improving ceramics, exports and advanced-application opportunities supporting medium-term growth. The stock is trading at a P/E of 49.9x/40.8x on FY27/28E earnings. We upgrade our rating from ‘Reduce’ to ‘Hold’ given healthy outlook in Ceramics division with a SoTP-based revised TP of Rs1,072 (Rs986 earlier) valuing Abrasives/Ceramics/Electrominerals at 35x/41x/15x Mar’28E (33x/40x/15x Mar’28E).
