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.

Usha Martin has officially published the notice for its 40th Annual General Meeting (AGM), scheduled for August 20, 2026, reinforcing its commitment to shareholder engagement following a year of robust financial performance. The company disclosed the notice under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, with advertisements appearing in "Business Standard" and "Aajkaal" on July 28, 2026. This procedural step finalizes the timeline for shareholders to vote on key resolutions, including a recommended final dividend of ₹3.75 per equity share for the financial year ended March 31, 2026.

The Board of Directors approved the dividend payout during its meeting on April 30, 2026, reflecting strong cash generation capabilities. Consolidated revenue grew 6.2% to ₹3,691 crore, while operating EBITDA rose 18.1% to ₹705 crore in FY26. The proposed dividend represents a 375% return on the face value of Re. 1 per share, subject to shareholder approval at the upcoming meeting. Payments will be made on or after August 24, 2026, within 30 days of declaration.

Key Dates and Deadlines

The AGM will be conducted exclusively via Video Conferencing/Other Audio Visual Means (VC/OAVM). Shareholders holding shares on the record date of August 13, 2026, are eligible to vote and receive the dividend. National Securities Depository Limited (NSDL) will manage e-voting from 9:00 A.M. (IST) on Monday, August 17, 2026, to 5:00 P.M. (IST) on Wednesday, August 19, 2026. Members unable to vote during this window can cast their votes electronically during the live AGM session.

Compliance and Special Windows

To ensure receipt of dividends, shareholders must complete specific compliance steps. Under the Income Tax Act, 2025, dividend income is taxable, requiring the company to deduct Tax at Source (TDS). Shareholders must submit required documents by Monday, August 10, 2026, to avoid delayed payments. Additionally, SEBI has opened a special window for the transfer and dematerialisation of physical securities sold or purchased prior to April 1, 2019. This window is active from February 5, 2026, to February 4, 2027. Eligible shareholders must submit transfer requests to KFin Technologies Limited within this period to regularize holdings.