Carborundum Universal Limited (CUMI), a part of the Chennai-based Murugappa group, is engaged in the manufacturing of abrasives, ceramics, refractories, and electro-minerals. The company is one of India's leading industrial conglomerates, established in 1954 as part of the Murugappa Group. CUMI's parent company, the Murugappa Group, made a tie-up with the Carborundum, UK, a subsidiary of American abrasive manufacturer, Carborundum, USA and the Universal Grinding Co. Ltd., UK in 1950. The result was the Carborundum Universal of Madras, which was renamed and incorporated in 1954 as Carborundum Universal Ltd (CUMI).
Carborundum Universal is known by its acronym CUMI, and is the largest high alumina ceramic manufacturing company in India. They are an industrial ceramic material-based products and service provider, with operations spread across three business segments namely abrasives, ceramics and electro minerals. The company has subsidiaries in India, Russia, South Africa, Australia, China, Thailand, and Canada.
The market capitalization of Carborundum Universal Ltd (CARBORUNIV) is ₹18,326.38 Crore as of June 27, 2025. Net profit of Carborundum Universal declined 78.39% to ₹29.14 Crore in the quarter ended March 2025, as against ₹134.84 Crore during the previous quarter ended March 2024. Sales rose 1.31% to ₹1,198.93 Crore in the quarter ended March 2025, as against ₹1,183.40 Crore during the previous quarter ended March 2024. For the full year, net profit declined 36.53% to ₹292.74 Crore in the year ended March 2025, as against ₹461.25 Crore during the previous year ended March 2024.
Key financial metrics include:
- P/E (price-to-earnings) ratio of 62.60
- P/B (price-to-book) ratio of 5.61
- Current dividend yield of 0.42%
- 52-week high of ₹1,790 and 52-week low of ₹809.10
The company's reportable business segments are: Surface engineering (material removal, cutting, polishing) known as Abrasives; Ceramics; Electrominerals; Power; IT services; and others. Maximum revenue is derived from the Abrasives segment which is comprised of bonded, coated, processed cloth, polymers, power tools, and coolants.
The company manufactures and distributes rigid and flexible abrasives across key product segments like bonded, coated, metal working fluid, and super abrasives. It is one of the largest producers of abrasives in the domestic market with over 30% market share. The segment's revenue increased by 63% from FY22 to FY24, fueled by high demand and the integration of newly acquired subsidiaries in Germany "RHODIUS Abrasive GmbH and CUMI AWUKO Abrasives GmbH" and India "PLUSS Advanced Technologies".
Ceramics segment includes technical ceramics and super refractory solutions to address wear protection, corrosion resistance, electrical resistance, heat protection, and ballistic protection. The Ceramics division creates wear-resistant and heat-resistant liners and metallized ceramics.
Electrominerals segment includes deals with the materials - fused aluminas, its variants, and silicon carbide - used in abrasives and refractories globally. The Electrominerals division provides raw materials for abrasives and refractories.
Carborundum Universal has completed the acquisition of additional 10,528 equity shares in PLUSS Advanced Technologies (PLUSS). Consequent to the latest acquisition on December 11, 2024, the shareholding in PLUSS has increased by 2.06% in the equity share capital aggregating to 74.06% as on date. The company has also allotted 37,096 equity shares under ESOP on December 12, 2024.
The company has been actively expanding its international presence through strategic acquisitions. Consolidated sales for the year increased by 40% to ₹4,601 Crore from ₹3,290 Crore in the last year, contributed by strong performance across all business segments and sales of ₹673 Crore from recently acquired subsidiaries like Awuko, Rhodius, and Pluss.
The company enjoys a healthy market share in its product categories and remains one of the largest producers of abrasives in the domestic market with over 30% market share. Globally, CUMI's 5,000 employees generated consolidated revenues of €306.5 million in FY2021 with innovative and high-quality material solutions and world-class services in abrasives, electrominerals, refractories, and ceramics. The mines-to-market company is a leader in materials science and engineering. CUMI products can be found on five continents and in over 43 countries.
Promoter holding in Carborundum Universal Ltd has gone down to 39.82% as of March 2025 from 41.16% as of June 2024. The company is almost debt-free.
The company reported a consolidated sales growth of 4.4% for the year, driven by strong performance in the Ceramics and Abrasives segments, despite facing significant challenges in the VAW segment due to geopolitical factors and competitive pressures from Chinese imports. Carborundum Universal reported a 79% decline in Q4 profit to ₹30 Crore, with marginal revenue growth of 1.3%. The company faces challenges from higher input costs and operational inefficiencies, impacting margins significantly.
The company continues to focus on leveraging its strong market position and diversified portfolio to navigate current challenges while capitalizing on long-term growth opportunities in the industrial materials sector.
