Carborundum Universal swings to Rs 40.01 cr loss as other income turns negative
Revenue rose 14.89% YoY, but faster cost growth narrowed operating margin by 1.71 percentage points and higher interest added pressure.
Filed 14 May 2026, 21:23 IST · after market close · Carborundum Universal Ltd (CARBORUNIV)
Key takeaways
- Consolidated Q4FY26 revenue grew 14.89% YoY, but expenses grew 17.12%, cutting operating margin by 1.71 percentage points to 10.31%.
- Negative other income of Rs 103.20 cr pushed consolidated profit before tax to a Rs 29.81 cr loss and net profit to a Rs 40.01 cr loss.
- The stock rose 6.27% on the first trading day, far above its 1.99% median absolute post-results move after seven of its last eight results saw declines.
Price around the results
Negative other income drove the quarterly loss
Consolidated revenue increased 14.89% YoY to Rs 1,398.35 cr, while operating profit fell 1.45% as costs grew faster than sales. Other income was negative at Rs 103.20 cr, compared with Rs 17.63 cr a year earlier, and represented 346.19% of pre-tax profit. That pushed profit before tax into a Rs 29.81 cr loss and net profit into a Rs 40.01 cr loss.
Costs, interest and depreciation all rose
Expenses grew 17.12% YoY against 14.89% revenue growth, narrowing operating margin by 1.71 percentage points; sequentially, the margin fell 1.86 percentage points as expenses grew 10.62% against 8.33% revenue growth. Interest expense rose 99.68% YoY and 36.17% QoQ, while depreciation increased 15.11% YoY. The reported tax rate fell to negative 34.22% from 35.35% sequentially, but the company still recorded tax expense of Rs 10.20 cr against a pre-tax loss.
Margin remains below peers after a sequential reversal
Operating margin declined from 12.17% in Q3FY26 to 10.31%, after recovering from 9.95% in Q1FY26; this is a renewed sequential decline rather than a third consecutive fall. The margin was 5.35 percentage points below the 15.66% median among 71 Industrials companies that had reported, placing Carborundum Universal 14th from the bottom.
The market reaction was unusual for this stock
The results were filed after market close, and the stock rose 6.27% on the next trading day despite opening with a 3.5% gap down. It was up 1.88% after five sessions and 13.58% after 30 sessions. The first-day move was well above the 1.99% median absolute move after the company's last eight results, during which the stock rose once and fell seven times.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,398 cr | ₹1,291 cr | +8.33% | +14.89% |
| Other income | ₹-103 cr | ₹22 cr | — | — |
| Expenses | ₹1,254 cr | ₹1,134 cr | +10.62% | +17.12% |
| Operating profit | ₹144 cr | ₹157 cr | -8.23% | -1.45% |
| Operating margin (%) | 10.31% | 12.17% | — | — |
| Interest | ₹6 cr | ₹5 cr | +36.17% | +99.68% |
| Depreciation | ₹65 cr | ₹61 cr | +5.54% | +15.11% |
| Profit before tax | ₹-30 cr | ₹113 cr | — | — |
| Tax | ₹10 cr | ₹40 cr | -74.50% | -86.33% |
| Net profit | ₹-40 cr | ₹73 cr | — | — |
| EPS (₹) | ₹-0.93 | ₹4.02 | — | — |
Operating margin of 10.31% compares with a Industrials sector median of 15.66% across 71 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +6.27% | +6.47% |
| Next session | +5.87% | — |
| 5 sessions | +1.88% | +1.75% |
| 15 sessions | +1.65% | — |
| 30 sessions | +13.58% | — |
Volume on the results session was 11.10× its 20-day average.
What to watch
- Whether operating margin recovers from 10.31% after the 1.86-percentage-point sequential decline.
- Whether other income moves back from negative Rs 103.20 cr and reduces its 346.19% share of pre-tax profit.
- Whether interest expense moderates after rising 36.17% QoQ and 99.68% YoY.