Usha Martin Reports Strong Q2 FY26 Performance with 19.1% EBITDA Margin and Net Cash Position

Usha Martin Limited , a leading wire rope manufacturer, has reported a robust financial performance for the second quarter of fiscal year 2026, demonstrating resilience amidst challenging market conditions.

Financial Highlights

Metric	Q2 FY26	Year-on-Year Change
Consolidated Revenue	908.00	-
Operating EBITDA	173.00	-
EBITDA Margin	19.10%	-
EBITDA per Ton	35,000.00	-
Net Cash Position	111.00	Turned positive
Debt Repayment	157.00	-
Operating Cash Flows	390.00	-
EBITDA to Cash Conversion	123.00%	-

Segment Performance

Wire Rope: 2.60% year-on-year revenue growth
Wires: 14.20% year-on-year revenue increase
LRPC: 26.00% year-on-year decline

Key Developments

Improved Financial Position: Usha Martin has turned net cash positive with INR 111.00 crore, repaying INR 157.00 crore of debt through internal accruals.
Strong Cash Generation: The company generated robust operating cash flows of INR 390.00 crore, with an impressive 123.00% EBITDA to cash conversion.
Segment Performance: The Wire Rope segment, which accounts for about 74% of total revenues, showed steady growth. The Wires segment delivered strong performance, while the LRPC division faced challenges.
One Usha Martin Initiative: The company's transformation program has started showing early benefits, contributing to improved financial discipline and operational efficiency.
Volume Challenges: Despite financial improvements, volume growth was below expectations, particularly in the rope and LRPC segments. This was attributed to factors such as a shift towards high-performance ropes, delayed equipment commissioning, and extended monsoon impacts.
Market Expansion: Usha Martin is actively working on expanding its presence in key markets, including Saudi Arabia, and is in the final stages of approval for value-added LRPC products with a key customer.
Future Outlook: The company expects higher throughput and growth in the second half of FY26, supported by completed capacity expansions and improving market conditions.

Rajeev Jhawar, Managing Director of Usha Martin Limited, commented, "Q2 FY '26 reflected steady financial progress and disciplined operational execution. The progress we have made across capacity expansion, product development, market diversification, and One Usha Martin continues to strengthen our growth foundation."

The company's focus on high-performance products, cost efficiency, and strategic market positioning appears to be yielding positive results, despite some short-term volume challenges. With a strengthened balance sheet and clear strategic direction, Usha Martin seems well-positioned for sustainable growth in the coming years.

Investors and stakeholders will be watching closely to see if the company can capitalize on its improved financial position and expected market improvements in the second half of FY26.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.54%	-2.73%	-4.34%	+47.46%	+20.68%	+1,664.11%

Usha Martin Limited , a leading wire rope manufacturer, has announced its financial results for the second quarter, demonstrating resilience in a challenging economic environment. The company also disclosed ongoing legal proceedings in its latest quarterly report.

Financial Highlights

Usha Martin reported a consolidated net profit of 1.10 billion rupees for Q2, maintaining the same level as the previous year. This stability in profitability comes alongside a modest increase in revenue, which grew to 9.07 billion rupees from 8.91 billion rupees year-over-year, representing a growth of about 1.8%.

Financial Metric	Q2 Current	Q2 Previous	YoY Change
Revenue	9.07	8.91	+1.8%
EBITDA	1.73	1.61	+7.5%
Net Profit	1.10	1.10	No change
EBITDA Margin	19.06%	18.04%	+102 bps

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a notable improvement, rising to 1.73 billion rupees compared to 1.61 billion rupees in the same period last year, marking an increase of approximately 7.5%.

Improved Operational Efficiency

Usha Martin's EBITDA margin expanded to 19.06% from 18.04% year-over-year, indicating enhanced operational efficiency and cost management. This 102 basis points improvement in margin suggests that the company has been successful in optimizing its operations despite potential challenges in the broader economic landscape.

Legal Proceedings

Usha Martin disclosed several ongoing legal issues in its quarterly report:

Certain land parcels at Ranchi, valued at Rs. 19,037 lakhs, have been attached under the Prevention of Money Laundering Act, 2002 (PMLA) in relation to iron ore sales.
The Central Bureau of Investigation (CBI) has filed charges against the company and certain personnel under the Prevention of Corruption Act, 1988 and Indian Penal Code, 1860.
The company has received summons from the Enforcement Directorate regarding PMLA provisions.

Despite these legal challenges, the management believes that the company has a strong case and has not made any adjustments to the financial results. They have stated that the ongoing operations of the company remain unaffected by these proceedings.

Looking Ahead

As Usha Martin continues to navigate the evolving market conditions and legal challenges, its focus on maintaining profitability and improving operational efficiency positions it well for future growth opportunities. The company's ability to maintain its profit levels while improving revenue and EBITDA demonstrates its strong market position and effective business strategies in the wire rope manufacturing sector.

Investors and stakeholders will likely keep a close eye on how the company builds upon this steady performance in the coming quarters, as well as the development of the ongoing legal proceedings.