Usha Martin reported a 40.9% year-on-year increase in consolidated net profit to ₹142 crore for the quarter ended June 30, 2026 (Q1FY27), driven by robust top-line growth and significant operating leverage. Consolidated revenue from operations climbed 16.4% to ₹1,033 crore from ₹887.2 crore in the corresponding period of the previous year. The improvement in profitability was underscored by an expansion in operating EBITDA margin to 20.1% from 16.3%, reflecting enhanced operational efficiency and cost management within its core Wire & Wire Ropes segment. Standalone net profit for the quarter rose 37.7% to ₹97.6 crore from ₹70.9 crore, while standalone turnover increased 18.9% to ₹642.5 crore.

The Board of Directors, at a meeting held on July 27, 2026, approved the unaudited standalone and consolidated financial results pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by S.R. Batliboi & Co. LLP, the statutory auditors, under Regulation 33. In recognition of the company's strong financial performance and improved credit profile, India Ratings and Research Pvt. Ltd. upgraded its Long-Term Credit Rating to IND AA-/Stable and reaffirmed the Short-Term Credit Rating at IND A1+. The newspaper advertisement for these results was published on July 28, 2026, in “Business Standard” and “Aajkaal”.

Financial Performance Highlights

Usha Martin's financial performance in Q1FY27 demonstrates strong momentum across key metrics. Consolidated Operating EBITDA improved year-on-year to ₹208 crore from ₹144.6 crore, representing a 43.8% increase. Profit before tax (PBT) rose 42.0% to ₹184.1 crore from ₹129.6 crore. Basic EPS stood at ₹4.66 for the quarter. Return on Capital Employed (ROCE) expanded to 21.4% from 18.2% in Q1FY26. On a standalone basis, PBT grew to ₹129 crore from ₹95.2 crore.

Operational Drivers and Cash Flow

Managing Director Rajeev Jhawar attributed the growth to an improved product and geographic mix, disciplined cost management, and timely pricing actions that offset higher input and freight costs. The rope business recorded healthy growth in India, the US, and Europe, particularly across higher-value applications, which helped offset volume reductions in the Middle East due to ongoing geopolitical conflict. The wires business delivered strong volume growth of around 19%, with revenue increasing by approximately 32%.

Earnings translated into strong cash generation, with the company reporting ₹242 crore of operating cash flow, representing 116% cash conversion of operating EBITDA. It ended the quarter with net cash of approximately ₹465 crore, up from ₹332 crore in March 2026. During the quarter, capital expenditure incurred was approximately ₹73 crore, focused on expanding capacity in specialised wire ropes and improving manufacturing efficiency. Free cash flow stood at ₹135 crore.

Segment and Geographic Breakdown

The Wire Rope segment remained the dominant revenue contributor, accounting for 73% of total sales, followed by LRPC at 12%, Wire at 9%, and Others at 6%. Geographically, international business contributed 57% of total revenue, with Europe being the largest market at 27%, followed by Asia Pacific (12%), Middle East & Africa (9%), and Americas (9%). India accounted for 43% of sales.

Legal Proceedings and Risk Factors

The auditor's report included an emphasis of matter paragraph regarding ongoing legal issues. The Directorate of Enforcement (ED) has attached certain land parcels in Ranchi valued at ₹1,903.70 million, alleging contravention of mining lease terms related to iron ore fines sales. Proceedings are ongoing under the Prevention of Money Laundering Act (PMLA), Prevention of Corruption Act, and Indian Penal Code. Additionally, the Central Bureau of Investigation (CBI) has filed cases against the company and its Managing Director. Management asserts that it has a strong legal case and that these proceedings have not affected ongoing operations. No provisions have been made in the financial statements for these matters.

What the Numbers Show

The expansion in operating EBITDA margin by approximately 3.8 percentage points highlights that Usha Martin's growth is fundamentally driven by its core wire rope business rather than non-operating items, reflecting effective pass-through of input costs or improved pricing power. With strong cash generation of ₹242 crore and a net cash position of ₹465 crore, the company is converting a higher proportion of revenue into liquid assets, signaling improved operational health despite the backdrop of prolonged legal uncertainties. The alignment between consolidated and standalone growth metrics indicates that the parent entity is performing in tandem with its subsidiaries, reinforcing the robustness of the overall group structure.

Usha Martin Limited submitted its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26 to the National Stock Exchange of India Ltd., BSE Limited, and Societe de la Bourse de Luxembourg on July 27, 2026. The filing details the company’s performance across environmental, social, and governance parameters, highlighting key sustainability milestones such as the partial commissioning of renewable energy infrastructure and the implementation of Zero Liquid Discharge systems. SGS India Private Limited conducted an independent assurance engagement, providing reasonable assurance for core BRSR indicators and limited assurance for other indicators in accordance with International Standard on Assurance Engagements (ISAE) 3000 (Revised) and ISAE 3410.

The report outlines the company’s operational footprint, which includes three plants and six offices nationally, alongside four plants and 16 offices internationally. As of March 31, 2026, the workforce comprised 664 employees and 4,394 workers. The Board of Directors approved the policies covering all nine principles of the National Guidelines on Responsible Business Conduct (NGRBC). Oversight is managed by the Sustainability Council, chaired by Whole Time Director S B N Sharma, which reviews performance quarterly alongside the Risk Management Committee.

Environmental Initiatives and Energy Transition

Usha Martin Limited reported significant progress in decarbonization efforts during FY 2025-26. A major milestone was the completion of Phase I of a 4 MWp rooftop solar PV installation at the Ranchi facility, with 2.2 MWp installed. Phase I is scheduled to begin operations in April 2026, while Phase II, covering the remaining 1.8 MWp, is expected to be commissioned within FY 2026-27. This initiative aims to reduce reliance on the coal-based Captive Power Plant and increase the share of renewable energy in the plant’s energy mix.

Additionally, the company transitioned its canteen fuel system from liquefied petroleum gas (LPG) cylinders to piped natural gas (PNG) at the Ranchi facility. Operating at an average consumption of approximately 220 SCM per day, this switch is estimated to reduce associated greenhouse gas emissions by 13–15%. An extensive energy-saving programme at the wire and wire rope plant targeted a 10% reduction in total power consumption through measures such as restructuring the power distribution network and replacing sodium vapour lamps with LED systems, resulting in savings of approximately 2 lakh units of electricity annually.

The company is committed to reducing water withdrawal by 50% by FY 2029-30, using FY 2024-25 as the baseline. A Zero Liquid Discharge (ZLD) system is operational at a section of the Ranchi facility, enabling the reuse of treated wastewater. Life Cycle Assessments (LCA) were completed for wire rope, wire & strands, and LRPC strand products, with Environmental Product Declaration (EPD) certification obtained for Powerform 8P, Minesform 8PVF, and Oceanmax 35.

Social Performance and Governance

On the social front, Usha Martin Limited emphasized workplace safety and inclusivity. The Occupational Health and Safety Management System, aligned with ISO 45001, was implemented across all manufacturing sites. Safety training covered 100% of the workforce, and Behaviour-Based Safety training was conducted for over 3,000 employees. The company reported no high-consequence work-related fatalities, and workers who sustained injuries were redeployed in suitable roles.

Diversity metrics showed that women constituted 4.07% of employees and 0.96% of workers. At the Board level, one out of seven directors was female, representing 14.29%. The company does not have any differently abled employees or workers as of March 31, 2026. Human rights training was conducted on a refresher basis, as FY 2025-26 was designated a non-training year following primary training in FY 2024-25.

Corporate Social Responsibility and Financials

Although not statutorily required to incur CSR spending due to the absence of net profits calculated under Section 198 of the Companies Act, 2013, over the last three financial years, the company voluntarily carried out CSR activities through the Usha Martin Foundation. Voluntary spending in the aspirational district of Ranchi, Jharkhand, amounted to ₹2,88,82,332. Beneficiaries included individuals from health and sanitation, education, livelihood, and skill development projects.

The report also disclosed monetary penalties paid during the year: ₹1,34,935 for GST detention issues in Tamil Nadu, ₹20,000 for ineligible input tax credit claims, and ₹50,000 for non-compliance with GST circulars. No appeals were preferred against these penalties. The company’s turnover for the period was reported at ₹23,120.30 million, with a net worth of ₹17,888.98 million.