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Informist, Monday, Aug. 10, 2026

 

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--Carborundum: Saw some easing out in competition from China in export 
--CONTEXT: Comments by Carborundum mgmt in post-earnings analyst concall 
--Carborundum: Growth in Q1 was mainly volume-driven, less price-driven 
--Carborundum: Saw significant raw-material cost push from May onwards 
--Carborundum: Retain capex guidance of INR 4 bln for FY27 
--Carborundum: Will stay put in Russia, comply with Russian laws 
--Carborundum: See mainly volume-driven growth going forward, mix could help

 

By Avishek Rakshit and Shruti Nair

 

KOLKATA/MUMBAI – Even as the US continues to sanction Russian companies and impose restrictions on firms operating in the country, Carborundum Universal Ltd. which operates in Russia through its subsidiary, will 'stay put' in that country and continue to comply with Russian laws, a senior company official.

 

"It is too difficult to predict what would happen in this geopolitical conflict. Our aim is to stay put, make sure that we comply with all laws, make sure that we comply with the local rules and regulations, and serve the domestic market and stay above the water," Sridharan Rangarajan, managing director of Carborundum Universal, told sector analysts Monday in a post-earnings conference call.

 

The Murugappa group-owned company operates in Russia through its subsidiary Volzhsky Abrasive Works, where it has a little over 98% stake. Volzhsky Abrasive Works is one of the world's largest single site silicon carbide manufacturer and a leading manufacturer of abrasive tools, grinding materials, and refractory products. 

 

The company serves customers across multiple industries through its integrated manufacturing capabilities and extensive product portfolio. In Russia, the company has a 90,000-tonne capacity refractory and sources raw materials locally. 

 

However, Volzhsky Abrasive Works continues to be subjected by US sanctions limiting its scope of operations. In its annual report for 2025-26 (Apr-Mar), Carborundum Universal said that Volzhsky Abrasive Works delivered a resilient performance in FY26 which was its first full year of operations following its inclusion on the Office of Foreign Assets Control's Specially Designated Nationals list by the US. 

 

Despite restrictions that limited its addressable markets largely to Russia and the Commonwealth of Independent States, Volzhsky Abrasive Works remained profitable through focused operational improvements and disciplined cost management.

 

In financial year 2025-26 (Apr-Mar), Volzhsky Abrasive Works reported revenues of 6,084 million Russian roubles compared with 9,403 million Russian roubles in FY25, reflecting the impact of challenging operating conditions for the first full year of operation since its inclusion in the Office of Foreign Assets Control's Specially Designated Nationals list. Volzhsky Abrasive Works' pre-tax profit fell to 671 million Russian roubles in FY26 as against 1.78 billion Russian roubles in FY25 on account of restricted exports in the backdrop of challenging geo-political tensions. 

 

The aforesaid list is a database of individuals, groups, and companies owned, controlled by, or acting for targeted countries, or international narcotics traffickers and other entities. US citizens cannot trade with them, and their assets are blocked. Carborundum Universal has realigned its business in Russia shifting the focus for this subsidiary to the Russian and Commonwealth of Independent States markets in view of the prevailing conditions.

 

"Fortunately, you know, these people with even the tough conditions, they are trying their best and doing it properly in terms of profitability and cash flow," Rangarajan said. 

 

 

While Carborundum Universal has been facing comparatively lower level of competiton from China at the start of the new financial year, it saw cost pressures arising May onwards due to the US-Israel war on Iran and the resulting volatility in global commodity prices.

 

The top company official said that while its growth in the June quarter was primarily volume driven, the company expects to maintain the volume growth momentum going forward in the current financial year. The company will maintain its capital expenditure guidance of INR 4 billion for the ongoing financial year. At 1252 IST, its shares traded over 2% higher at INR 1,123.90 on the National Stock Exchange. End

 

Edited by Akul Nishant Akhoury

 

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