Usha Martin (517146) Q1 25/26 earnings summary

Executive summary

• Consolidated revenue for Q1 FY26 reached INR 887 crore (₹887.2 crore), up 7.4% year-on-year, driven by a 10.4% rise in sales volumes, especially in wire and wire rope segments.

• Net profit after tax for Q1 FY26 was INR 101 crore (₹100.8 crore), slightly down year-on-year due to margin pressures but supported by value-added products and operational discipline.

• The company remains net debt-free at both standalone and consolidated levels, with a strong balance sheet and robust cash flows.

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

• Strong cash conversion and a net cash position of INR 14 crore as of June 2025, compared to net debt of INR 63 crore in March 2025.

Financial highlights

• Operating EBITDA for Q1 FY26 was INR 145 crore (₹144.6 crore), with a margin of 16.3%, down from 18.6% year-on-year due to market pressures.

• Net profit was INR 101 crore, slightly down from INR 104 crore year-on-year.

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

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

• Standalone revenue grew 5.1% year-on-year to ₹540.1 crore, with standalone PAT at ₹70.9 crore.

Outlook and guidance

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

• EBITDA margin targeted at 18% for FY26, with potential to reach 19-20% in FY27.

• Cost optimization benefits to be fully realized from Q3 FY26.

• Ongoing capacity expansion at Ranchi and a robust order pipeline position the company for future growth.

• Management confirmed ongoing legal proceedings have not affected operations and expects to continue business as usual.