Usha Martin (517146) investor relations material

Executive summary

• Consolidated revenue for Q1 FY26 reached INR 887.2 crores, up 7.4% year-over-year, driven by 10.4% volume growth, especially in wire and wire rope segments.

• Net profit for Q1 FY26 was INR 100.8 crores, slightly down from the prior year, with margins impacted by market pressures but supported by value-added products and operational discipline.

• The company achieved a net cash position of INR 14 crores as of June 2025, improving from net debt of INR 63 crores in March 2025, and remains net debt-free at the consolidated level.

• The 'One Usha Martin' transformation initiative is nearing completion, expected to yield stronger outcomes in H2 FY26.

• Unaudited standalone and consolidated financial results for Q1 FY26 were approved by the Board on August 12, 2025, with no material misstatements reported.

Financial highlights

• Operating EBITDA for Q1 FY26 was INR 145 crores (16.3% margin), with EBITDA per tonne at INR 28,502.

• Operating cash flow before tax was INR 137 crores, 95% of operating EBITDA, up from 66% in Q1 FY25.

• Basic EPS for Q1 FY26 was INR 3.31, a 3% decrease year-over-year.

• Standalone revenue grew 5.1% year-over-year to INR 540.1 crores, with standalone PAT at INR 70.9 crores.

• Other income rose significantly to INR 15.5 crores, up 210% year-over-year.

Outlook and guidance

• Management expects stronger performance in H2 FY26 as transformation and capacity expansion benefits materialize.

• EBITDA margin guidance raised to 18% for the full year, with potential to reach 19-20% in FY27.

• Working capital days reduced from 209 to 196, with further improvement targeted.

• No major one-off expenses in the quarter; cost optimization benefits to be fully realized from Q3.

• Ongoing legal proceedings have not affected operations, and management expects business as usual.