Usha Martin reported a 40.9% year-on-year increase in consolidated net profit to ₹1,420.4 million 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 ₹10,330 million from ₹8,871.9 million in the corresponding period of the previous year. The improvement in profitability was underscored by an expansion in EBITDA margin to 20.62% from 16.81%, reflecting enhanced operational efficiency and cost management within its core Wire & Wire Ropes segment.

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. The Board also noted that ongoing legal proceedings concerning the attachment of certain land parcels in Ranchi have not impacted current operations, with management maintaining that no financial adjustment is necessary pending final outcomes.

Financial Performance Highlights

Usha Martin’s financial performance in Q1FY27 demonstrates strong momentum across key metrics. The Wire & Wire Ropes segment, which constitutes the majority of the group’s business, generated segment revenue of ₹10,211 million, up significantly from ₹8,707.5 million in Q1FY26. This core segment contributed ₹19,206 million to the pre-tax and pre-finance cost profit, compared to ₹13,576 million in the prior year period.

On a standalone basis, the company reported a net profit of ₹976 million, a 37.7% increase from ₹708.7 million in Q1FY26. Standalone revenue rose 18.9% to ₹6,424.9 million from ₹5,401.1 million. The improvement in standalone earnings per share (EPS) was evident, with basic EPS rising to ₹3.21 from ₹2.33.

Segment and Operational Insights

The group’s total assets stood at ₹44,227.2 million as of June 30, 2026, an increase from ₹38,953.5 million in the same period last year. Liabilities decreased slightly to ₹9,897.3 million from ₹9,904.1 million. The Wire & Wire Ropes segment assets grew to ₹37,719.3 million from ₹34,279.9 million, indicating continued investment in capacity or working capital requirements.

Other income for the consolidated entity was ₹85.6 million in Q1FY27, down from ₹154.6 million in Q1FY26. This decline contrasts with the previous year’s figure which included interest on income tax refunds and gains from asset sales. Finance costs remained controlled at ₹39 million, lower than the ₹62.5 million incurred in Q1FY26, contributing positively to the bottom line.

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 ₹1,903.7 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 divergence between the modest decline in other income and the substantial rise in operational profits highlights that Usha Martin’s growth is fundamentally driven by its core wire rope business rather than non-operating items. The expansion in EBITDA margin by 381 basis points suggests effective pass-through of input costs or improved pricing power. With finance costs declining and tax efficiency maintained (effective tax rate approx. 22.9%), the company is converting a higher proportion of revenue into net profit, signaling improved operational health despite the backdrop of prolonged legal uncertainties.

Usha Martin delivered a robust financial performance in Q1, with consolidated net profit rising to ₹1.42B compared to ₹1B in the corresponding period last year. The company also recorded meaningful growth across revenue and operating profitability metrics on a year-on-year basis.

Q1 Financial Performance at a Glance

The company's Q1 results reflect broad-based improvement across key financial parameters. Revenue climbed to ₹10.33B from ₹8.87B YoY, while EBITDA expanded to ₹2.13B from ₹1.49B over the same period. Notably, the EBITDA margin widened by approximately 381 basis points to 20.62% from 16.81% YoY, underscoring enhanced operational efficiency during the quarter.

The following table summarises Usha Martin's key consolidated financial metrics for Q1:

Revenue and Profitability Trends

Usha Martin's revenue growth from ₹8.87B to ₹10.33B on a year-on-year basis reflects a sustained increase in the company's top-line performance. The expansion in EBITDA from ₹1.49B to ₹2.13B, alongside the improvement in EBITDA margin from 16.81% to 20.62%, points to better cost management and operating leverage during the quarter. Net profit growth from ₹1B to ₹1.42B further reinforces the company's improved bottom-line trajectory on a consolidated basis.