Carborundum Universal Ltd

- FY26 CAPEX: INR 310 crores; FY27 planned CAPEX: around INR 400 crores, focused on capacity and capability building. - Major FY27 CAPEX projects (~INR 400 crores) include: - Expansion of Advanced Ceramics for power electronics (substrate, metallized tubes, rings, braced assemblies). - Expansion of Brown Fused Alumina capacity. - Integrated furnace facility for thermal spray powders. - Zirconia furnace and grain processing facility. - Commissioning thin wheel capacity at Hosur using assets acquired from DRONCO (INR 83 crores CAPEX). - Increase treatment facility capacity (INR 30 crores CAPEX). - CAPEX for 110 kV substation and tunnel kiln for Refractories. - Pilot scale plant established for manufacturing Ceramic powders for Solid Oxide Fuel Cells (SOFC) leveraging technology partnership with CGCRI; plans to expand this. - Plans to increase R&D spend from ~1% to 2-3% to strengthen new product development.

- Ceramics segment growth expected at around 14%-15% next year, recovering from a 9% growth this year due to deferred projects. - Engineered Ceramics, including SOFC, EV, aerospace, and defense applications, anticipated to see substantial growth and increased revenue share. - Semiconductor-related ceramics business qualification completed; serial production and revenue generation expected from 2029 onwards. - Electrominerals export business growing, with 33% export share and volume-driven growth; focus on treated products and exports continuing. - Abrasives sector shows 15% growth in H2, supported by domestic market improvements due to policy changes (e.g., China's export rebate removal). - CAPEX investments planned to increase (INR 400 crores next year) to build capacity and capability for future robust revenue growth. - SOFC business poised for meaningful share with strong growth visibility up to 2028 driven by customer expansion.

- Ceramics segment expected growth: 14% to 15.5% in FY27, driven by strong demand in engineered ceramics (including SOFC, EV applications, aerospace). - Abrasives segment growth projected at 5.5% to 6% (11%-12% excluding Awuko subsidiary). - Electrominerals sales expected to decline by 6.5%-7% due to closure of Foskor Zirconia, but adjusted growth excluding that is 8%-9%. - Profit margins improvement expected: Abrasives margins rising from 7.9% to about 9.5%-10%; Ceramics margin steady around 20.5%-21%; Electrominerals margin around 9%-9.5%. - Free cash flow is strong, and company is net debt-free, enabling self-funding of capacity expansions. - Significant CAPEX planned (~INR 400 crores) for capacity and capability building, expected to support future revenue and profit growth. - Management confident in returning to or exceeding previous profit guidance supported by strong backlog and customer forecasts.

- The company missed its FY26 growth guideline primarily due to deferred projects. - Confidence to meet the FY27 target of 14-15% growth is based on the existing backlog and forecast from customers. - Deferred projects from FY26 are expected to contribute to growth in the next couple of years. - The backlog and customer forecast give the management optimism about meeting growth expectations. - Expansion plans, especially in ceramics and other strategic areas, are aligned with the current order pipeline. - No specific quantitative value of orderbook or pending orders disclosed, but a strong backlog supports future revenue growth.

- There is no mention of any current or future new fundraising through debt or equity in the transcript. - The company highlighted it is currently net debt-free. - Capex planned is approximately INR 400 crores for FY27, funded through strong free cash flow and internal resources. - Management emphasized that CUMI is capable of funding its programs internally without external borrowing. - No guidance or discussion related to raising funds via equity or debt was provided during the call.