Usha Martin declared a final dividend of ₹3.75 per equity share for FY26 during its 40th Annual General Meeting held on August 20, 2026. The company also approved the appointment of new directors and statutory auditors.

The meeting, conducted via Video Conferencing / Other Audio-Visual Means, commenced at 11:30 am and concluded at 1:05 pm. Chairman Vijay Singh Bapna presided over the proceedings, highlighting the company's strongest performance since the sale of its steel business. He emphasized growth in international markets and progress under the "One Usha Martin" initiative.

Voting Results Overview

The scrutinizer’s report confirmed that all 12 resolutions were passed with the requisite majority. A total of 968 members cast their votes, comprising 944 through remote e-voting and 24 electronically during the meeting. Out of 109,652 shareholders on the record date, 9 promoter group members and 109 public shareholders attended via video conference. No shareholders were present in person or via proxy.

Key Resolutions Approved

Members approved several ordinary and special resolutions concerning financial statements, auditor appointments, and director remuneration.

Board Appointments

The AGM approved the reappointment of Independent Directors Mr. Venkatachalam Ramakrishna Iyer and Mr. Sethurathnam Ravi. Additionally, Ms. Shreya Jhawar, Mr. Dimitri Bracco Gartner, and Mr. Sabyasachi Majumder were appointed as Non-Executive (Non-Independent) Directors.

All ten directors attended the meeting. Representatives of the Statutory Auditors and Secretarial Auditors were also present via video conference. Mr. Raj Kumar Banthia served as the Scrutinizer for the e-voting process.

Institutional Dissent on Key Resolutions

While promoter group votes were unanimous across all resolutions, significant dissent emerged from the Public-Institutions category regarding specific board appointments and remuneration packages.

The resolution to approve the remuneration of Managing Director Mr. Rajeev Jhawar saw 22.91% opposition from institutional investors, though it passed with overall support of 91.02%. Similarly, the reappointment of Independent Director Mr. Venkatachalam Ramakrishna Iyer faced 27.55% opposition from institutions, resulting in an overall approval rate of 89.20%.

Shareholding Discrepancy Note

The company noted that the total number of paid-up equity shares is inflated by 230 shares due to an erroneous electronic transfer to the Investor Education & Protection Fund (IEPF) in September 2020. The company is engaging with the IEPF Authority, MCA, CDSL, and its RTA for rectification. Necessary documents have been submitted, and action is pending.

Usha Martin Limited delivered a robust start to FY27, reporting a 16.4% year-on-year increase in consolidated revenue from operations to ₹1,033 crore for the quarter ended June 30, 2026. Operating EBITDA surged 44% to ₹208 crore, driven by a strategic shift toward high-value products and effective cost pass-throughs despite rising input prices. The company’s profit after tax grew 41% to ₹142 crore, reflecting strong operational leverage and margin expansion.

The financial performance was underpinned by an improvement in EBITDA margins to 20.1%, a 380-basis point increase year-on-year. Management attributed this growth to a richer product mix, where value-added wire rope components accounted for 73% of the segment compared to 70% in FY26. The company successfully passed through increases in key input costs, including a 7% rise in wire rod prices and a 28% jump in zinc prices, without absorbing any cost in commodity products. Cash generation remained strong, with operating cash flow before tax at ₹242 crore, representing a 116% conversion of operating EBITDA.

Segmental Performance

The Wire Rope business recorded revenue growth of 18% year-on-year, while the Wire and Strand segment grew by 31.7%. The LRPC segment saw marginal growth of 3.9%, supported by traction in plasticated LRPC applications. In the domestic market, rope volumes grew approximately 12% year-on-year, while value increased by around 21%. International markets also contributed significantly, with Europe accounting for 27% of the topline this quarter. However, Middle East operations faced headwinds, with volumes down approximately 28% due to geopolitical disruptions, though realizations improved by 36%.

Strategic Initiatives and Outlook

Usha Martin continues to invest in capacity expansion and specialized products. Capital expenditure for the quarter was ₹73 crore, with full-year FY27 capex guided at ₹250 crore to ₹300 crore. A key project is the expansion of elevator rope capacity by approximately 6,000 metric tons per annum, expected to be commissioned in phases starting October 2026. The company aims for 10% to 12% volume growth and 15% value growth for the full year, barring further geopolitical escalations.

What the Numbers Show

The divergence between volume performance and revenue growth highlights Usha Martin’s successful transition to a value-led strategy. While overall wire rope volumes were marginally lower due to Middle East disruptions, revenue grew 18% as higher realizations and a premium product mix offset volume declines. The ability to maintain EBITDA margins above 20% despite significant input cost inflation demonstrates pricing power and operational efficiency. Furthermore, the upgrade of its long-term credit rating to IND AA- by India Ratings and Research underscores the strength of its balance sheet, which closed the quarter with a net cash position of approximately ₹465 crore.