Mumbai, Aug 7 : Murugappa Group's engineering company Carborundum Universal Limited on Thursday reported a sharp 47.4 per cent decline in net profit for the April'June quarter (Q1 FY26), falling to Rs 60.39 crore compared to Rs 114.84 crore in the same quarter previous year (Q1 FY25).

The disappointing results led to a 3.51 per cent drop in the company's stock on Thursday, with shares closed at Rs 854. Carborundum Universal shares are now down over 13 per cent over the past month.

Despite a modest 2 per cent rise in revenue to Rs 1,219 crore from Rs 1,197.5 crore a year ago, the Chennai-based company's profitability was under pressure, according to its stock exchange filing.

The company's total expenses in Q1 were Rs 1,160.15 crore, compared to Rs 1,058.69 crore in a year-ago period.

The major contributor in total expenses were cost of materials consumed which was Rs 461.6 crore, employee benefits expense at Rs 237.98 crore and other expenses was Rs 287.39 crore.

The operating performance weakened, as reflected in the 37 per cent drop in EBITDA, which fell to Rs 121.5 crore from Rs 193 crore previous year.

The EBITDA margin also narrowed sharply to 10 per cent, down from 16 per cent a year earlier.

The abrasives-to-ceramics manufacturer saw mixed performance across its segments. The Ceramics business recorded an 11.1 per cent growth in revenue, reaching Rs 300 crore.

The Electro Minerals segment also posted a 6.3 per cent year-on-year growth, generating Rs 405 crore in revenue.

However, the company's largest segment, abrasives, declined 8 per cent to Rs 508 crore, the company said in its regulatory filing.

Carborundum Universal is part of the 124-year-old Murugappa Group, a diversified Indian conglomerate with interests across engineering, agriculture, financial services, and other industries.

The group has nine listed companies and is known for brands such as BSA, Ajax, Hercules, and Chola.

/IANS