Carborundum targets 11-12% growth, puts ₹400 cr into semiconductor ceramics
FY27 guidance strips out subsidiaries being wound up. The capex bet is on high-tech materials.
What's new
- FY27 sales growth guidance is 11%-12%, excluding subsidiaries being wound up.
- Company plans ₹400 cr capex, focused on advanced ceramics for semiconductors, power electronics, and defence.
- Progress on SOFC powders, high-purity silicon carbide, and nitride materials.
Why this matters
The guidance excludes Awuko and Foskor Zirconia, so the 11-12% growth target reflects the core business's organic momentum. The ₹400 crore capex is a direct allocation to the highest-margin, fastest-growing end-markets in advanced materials.
What we're watching
- Execution of the semiconductor and power-electronics ceramics roadmap.
- How margin improvements across segments translate to consolidated profitability.
- Progress on closing loss-making subsidiaries Awuko and Foskor Zirconia.
The full read
Carborundum Universal's Q4 call gave the street its first concrete FY27 numbers. Management guided for 11%-12% consolidated sales growth, a figure that deliberately strips out the drag from subsidiaries being wound up. The bigger story is the ₹400 crore capex plan, aimed squarely at advanced ceramics for semiconductors, power electronics, and defence. This is a clear signal that the company is placing a large bet on high-tech materials to drive future margins. The call also detailed progress on SOFC powders and high-purity silicon carbide. With the closure of loss-making Awuko and Foskor Zirconia, the growth guidance appears to reflect a cleaner, more focused operation. It's a focused capex story.
Questions answered
- What is the headline growth guidance for FY27?
- Carborundum Universal expects consolidated sales growth of 11% to 12% for the fiscal year. This figure excludes revenues from subsidiaries that are being wound up.
- How will the ₹400 crore capex be used?
- The capital expenditure will focus on expanding advanced ceramics capacity for semiconductors, power electronics, and defence. It will also increase fused alumina production.
- What is the Aspiration 2030 strategy about?
- Aspiration 2030 is the company's long-term strategy targeting emerging technologies. It includes developing materials like SOFC powders, high-purity silicon carbide, and nitride materials.
- Which subsidiaries are being wound up, and why?
- The company is winding up subsidiaries Awuko and Foskor Zirconia. The rationale is to remove loss-making operations, which is why the FY27 growth guidance excludes their revenues.