NewsUsha Martin Q4 & FY26 Earnings Call: Record EBITDA, Debt-Free Balance Sheet, and Growth RoadmapUsha Martin Q4 & FY26 Earnings Call: Record EBITDA, Debt-Free Balance Sheet, and Growth Roadmap
Usha Martin reported FY26 consolidated revenue of INR 3,691 crore, up 6.2%, with operating EBITDA rising 18% to INR 705 crore at a 19.1% margin. Q4 FY26 delivered the highest EBITDA since the steel business sale at INR 212 crore, with margins of 21.6% and EBITDA per ton of approximately INR 39,500. The company closed the year with a net cash position of INR 332 crore, turned from net debt of INR 63 crore, with standalone operations entirely debt-free. Management guided for 10%–12% volume growth over the next two to three years, minimum 20% operating margins, and approximately INR 300 crore capex over the next two years to expand rope and plasticated LRPC capacity.
*this image is generated using AI for illustrative purposes only.
Usha Martin Limited reported a strong set of results for Q4 and the full year ended March 31, 2026, highlighted by record quarterly EBITDA, a debt-free standalone balance sheet, and expanding margins driven by a richer product mix and structural cost efficiencies. Managing Director Rajeev Jhawar and CFO Abhijit Paul presented the financial highlights during the earnings conference call held on April 30, 2026, alongside Shreya Jhawar from the Strategy and Growth team.
Full Year FY26 Financial Performance
For FY26, the company delivered broad-based growth across its core businesses. The following table summarises the key full-year financial metrics:
| Metric: | FY26 | FY25 | Change |
|---|---|---|---|
| Consolidated Revenue: | INR 3,691 crore | — | +6.2% YoY |
| Operating EBITDA: | INR 705 crore | INR 597 crore | +18% YoY |
| Operating EBITDA Margin: | 19.1% | 17.2% | +190 bps |
| EBITDA per Ton: | ~INR 34,100 | ~INR 30,100 | Improved |
| PAT (Continuing Operations): | INR 491 crore | INR 406 crore | Improved |
| Operating Cash Flow: | INR 736 crore | — | ~104% of EBITDA |
| Capex: | INR 198 crore | — | — |
| Free Cash Flow: | INR 457 crore | — | — |
| Net Cash Position: | INR 332 crore | Net Debt INR 63 crore | Turnaround |
| Net Working Capital Days: | 194 days | 199 days | Improved |
| ROCE: | 20.6% | 19.3% | Improved |
Wire Rope revenues grew approximately 8% for the full year, while the Wire segment posted strong revenue growth of around 24%. LRPC revenues were lower by 20.4% in Q4. International revenues rose to 57% of total topline from 55% in the prior year. The company repaid borrowings of INR 192 crore during the year, reducing finance costs by approximately INR 10 crore, with standalone operations now entirely debt-free.
Q4 FY26 Quarterly Highlights
The fourth quarter marked the highest operating EBITDA since the divestiture of the steel business. Key Q4 metrics are presented below:
| Metric: | Q4 FY26 | Q4 FY25 | Change |
|---|---|---|---|
| Consolidated Revenue: | INR 979 crore | — | +9.3% YoY |
| Rope Revenue Growth: | — | — | +14.8% YoY |
| Wire Revenue Growth: | — | — | +31.2% YoY |
| LRPC Revenue: | — | — | -20.4% YoY |
| Operating EBITDA: | INR 212 crore | — | +52% YoY |
| Operating EBITDA Margin: | 21.6% | — | Expanded |
| EBITDA per Ton: | ~INR 39,500 | — | — |
| PAT (Continuing Operations): | INR 155 crore | — | — |
During the quarter, the company executed a landmark Oceanmax project at its Ranchi facility, including the largest single reel rope production ever undertaken at that plant. Rope volume growth in Q4 was approximately 5%, with management noting that geopolitical disruptions in the Middle East impacted volumes by approximately 900 tons; excluding this impact, rope volume growth would have been approximately 8% for the quarter.
Operational Drivers and Cost Efficiency
The 'One Usha Martin' integration program continued to deliver measurable results. Fixed employee costs declined 3% and administrative expenses fell over 7% year-on-year, even as topline grew 6%. Over the last 18 months, the program has generated approximately INR 65 crore to INR 70 crore in cost savings. Management described this cost discipline as now embedded across both Indian operations and international subsidiaries.
On the input cost front, LPG prices rose from approximately INR 60,000 per ton to approximately INR 1,20,000 to INR 1,30,000 per ton, adding approximately INR 2.5 crore to INR 3 crore per month in costs. The company consumes approximately 250 to 300 tons of LPG per month across its furnaces. To mitigate this, the company is shifting approximately 25% of its gas requirement to a natural gas pipeline recently completed near its plant. Input cost increases in Wire and LRPC segments have been passed through to customers, and in the Rope segment, a better product mix has helped manage cost pressures while improving realizations.
Capacity, Capex, and Growth Outlook
Current capacity utilisation across segments is summarised below:
| Segment: | Capacity | Utilisation |
|---|---|---|
| Wire Rope: | ~1,40,000 tons | ~75% |
| Wire: | ~80,000 tons | ~75%–78% |
| Normal LRPC: | ~60,000 tons | ~70% |
| Plasticated LRPC: | ~6,000 tons | ~70% |
For the next two years, the company plans capex of approximately INR 300 crore, with approximately 70%–75% allocated to expanding rope capacity by around 6,000 tons, and the balance directed at specialized wire capacity and plasticated LRPC equipment and testing facilities. Plasticated LRPC capacity is targeted to scale from the current 6,000 tons to 8,000–9,000 tons in subsequent steps, subject to demand. Current plasticated LRPC production runs at approximately 2,500 tons per year, with management expecting to approximately double this to 4,000–4,500 tons as customer approvals are secured. The Thailand plant is also undergoing modernisation, with meaningful operational improvement expected over the next 18 months, focusing on specialized cords, elevator ropes, and port crane ropes.
Management guided for overall volume growth of 10%–12% across all product segments for the next two to three years, supported by growing order books in oil and offshore, elevators, port cranes, and mining. The U.S. market grew from 7% to 9% of topline in FY26, with market share described as sub-5%, indicating significant headroom. Europe accounts for approximately 26% of topline, with market share estimated at approximately 10%–12%. The company targets a minimum operating EBITDA margin of 20% going forward, with absolute EBITDA improvement also a stated priority alongside volume growth.
Historical Stock Returns for Usha Martin
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.95% | +4.66% | +16.61% | +0.08% | +54.68% | +766.82% |
How might escalating geopolitical tensions in the Middle East and potential supply chain disruptions affect Usha Martin's ability to sustain its 10-12% volume growth target over the next two to three years?
With the U.S. market currently at sub-5% market share and growing to 9% of topline, what competitive dynamics or trade policy risks could challenge Usha Martin's strategy to deepen its penetration in the American market?
As Usha Martin scales plasticated LRPC capacity and pursues customer approvals, how quickly could new infrastructure and construction sector clients be onboarded, and what is the realistic timeline to reach full utilization of the expanded 8,000-9,000 ton capacity?
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