Usha Martin Reports Exceptional FY26 Results with 375% Dividend Recommendation
Usha Martin Limited delivered outstanding FY26 performance with consolidated revenue growing 6.20% to Rs 3,691.06 crore and net profit surging 20.90% to Rs 491.20 crore. The company recommended a substantial 375% dividend of Rs 3.75 per share and appointed new auditors while maintaining strong cash flows and improved margins across all business segments.
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Usha Martin Limited announced its audited financial results for FY26 following a Board meeting held on April 30, 2026. The company delivered exceptional performance with consolidated revenue from operations growing 6.20% year-on-year to Rs 3,691.06 crore in FY26, compared to Rs 3,474.16 crore in FY25. The consolidated net profit from continuing operations reached Rs 491.20 crore, up 20.90% from Rs 406.32 crore in FY25.
Board Meeting Outcomes and Corporate Actions
The Board of Directors approved several key decisions during their meeting on April 30, 2026. The company recommended a final dividend of Rs 3.75 per equity share of Re 1 each, representing a 375% dividend rate for FY26, subject to shareholder approval at the upcoming Annual General Meeting. The Board also appointed M/s Mani & Co., Cost Accountants, as Cost Auditor for FY27 and M/s. Deloitte Touche Tohmatsu India LLP as Internal Auditor for FY27.
| Board Decisions: | Details |
|---|---|
| Final Dividend Recommended: | Rs 3.75 per share (375%) |
| Cost Auditor Appointed: | M/s Mani & Co., Cost Accountants |
| Internal Auditor Appointed: | M/s. Deloitte Touche Tohmatsu India LLP |
| Board Meeting Duration: | 12:00 Noon to 13:15 PM (IST) |
Q4FY26 Performance Highlights
The company's Q4FY26 performance was remarkable, with consolidated revenue from operations growing 9.30% to Rs 979.26 crore from Rs 896.08 crore in Q4FY25. Operating EBITDA witnessed substantial improvement, surging 51.60% to Rs 211.50 crore from Rs 139.60 crore in the corresponding quarter of the previous year. Operating EBITDA margin expanded significantly to 21.60% from 15.60% in Q4FY25, representing an improvement of 600 basis points. Consolidated net profit increased by 46.70% to Rs 148.03 crore from Rs 100.91 crore in Q4FY25.
| Performance Metrics: | Q4FY26 | Q4FY25 | YoY Change |
|---|---|---|---|
| Revenue from Operations (Rs Crore): | 979.26 | 896.08 | +9.30% |
| Consolidated Net Profit (Rs Crore): | 148.03 | 100.91 | +46.70% |
| Operating EBITDA (Rs Crore): | 211.50 | 139.60 | +51.60% |
| Operating EBITDA Margin: | 21.60% | 15.60% | +6.00 pps |
Full Year FY26 Financial Performance
For the complete financial year FY26, the company reported consolidated revenue from operations of Rs 3,691.06 crore, representing a 6.20% increase from Rs 3,474.16 crore in FY25. Operating EBITDA for the full year grew 18.10% to Rs 705.00 crore with margins expanding to 19.10% from 17.20% in the previous year. Net profit from continuing operations reached Rs 491.20 crore, up 20.90% from Rs 406.32 crore in FY25. Return on Capital Employed (ROCE) improved to 20.60% from 19.30% in FY25.
| Annual Performance: | FY26 | FY25 | YoY Change |
|---|---|---|---|
| Revenue from Operations (Rs Crore): | 3,691.06 | 3,474.16 | +6.20% |
| Operating EBITDA (Rs Crore): | 705.00 | 597.00 | +18.10% |
| Operating EBITDA Margin: | 19.10% | 17.20% | +1.90 pps |
| PAT from Continuing Operations (Rs Crore): | 491.20 | 406.32 | +20.90% |
| ROCE: | 20.60% | 19.30% | +1.30 pps |
Cash Flow and Balance Sheet Strength
Free cash flows for FY26 stood at Rs 457.00 crore, up nearly 2.5 times over FY25, even as the company invested Rs 198.06 crore in capacity and capability enhancement, fully funded through internal accruals. The strong balance sheet position moved from a net debt position of Rs 63.00 crore in FY25 to a net cash position of Rs 332.00 crore in FY26, with approximately 104% of operating EBITDA converted into cash.
| Cash Flow Metrics: | FY26 | Details |
|---|---|---|
| Net Cash Position: | Rs 332.00 crore | vs Net Debt of Rs 63.00 crore in FY25 |
| Free Cash Flow: | Rs 457.00 crore | Up 2.5x over FY25 |
| Capex Investment: | Rs 198.06 crore | Funded through internal accruals |
| Cash Conversion: | ~104% | Of Operating EBITDA |
Auditor's Report and Regulatory Compliance
S R Batliboi & Co. LLP, the Statutory Auditors of the Company, issued an unmodified opinion on the financial results for both standalone and consolidated basis. The auditors' report highlighted ongoing legal proceedings related to certain land parcels at Ranchi worth Rs 19,037 lakhs under investigation by the Enforcement Directorate and Central Bureau of Investigation. However, management believes the company has a strong case based on legal opinions obtained.
Historical Stock Returns for Usha Martin
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.17% | +1.54% | +10.74% | -2.31% | +53.67% | +948.26% |
How will Usha Martin utilize its strong net cash position of Rs 332 crore for future growth initiatives or strategic acquisitions?
What impact could the ongoing Enforcement Directorate and CBI investigations regarding Ranchi land parcels have on the company's operations and investor sentiment?
Can Usha Martin sustain its improved EBITDA margins of 21.6% in Q4FY26 amid potential raw material cost pressures and market competition?
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