Synopsis: Usha Martin reported a strong Q1 FY27 with revenue rising 16.4 percent YoY to a record Rs. 1,033 crore, while net profit surged 40.9 percent to Rs. 142 crore. Higher realizations, an improved product mix, disciplined cost management and strong export demand supported margin expansion, while the company further strengthened its balance sheet with a net cash position of Rs. 465 crore.
Shares of Usha Martin Limited are likely to remain in focus after the company reported a robust financial performance for the first quarter of FY27, driven by healthy demand across its wire rope and wire businesses, improving profitability and strong cash generation. The company also continued to maintain a debt-free balance sheet with a growing net cash position. The company shared these details in its Q1 FY27 earnings presentation.
Usha Martin Limited has a total market capitalization of approximately Rs. 15,460 crore. The company’s shares were trading at Rs. 505.10 apiece on the stock exchange. The stock has gained 1.84 percent over the last five trading sessions and gained 4.28 percent over the last month. It touched a 52-week high of Rs. 527.50 and a 52-week low of Rs. 333.60.
Q1 FY27 Financial Performance
The company reported consolidated revenue from operations of Rs. 1,033 crore, registering a 16.4 percent YoY increase from Rs. 887 crore in Q1 FY26. Operating EBITDA rose sharply by 43.8 percent to Rs. 208 crore, while the operating EBITDA margin expanded by 380 basis points to 20.1 percent, reflecting improved operational efficiency.
Profitability also improved significantly, with PAT increasing 40.9 percent YoY to Rs. 142 crore compared to Rs. 101 crore in the corresponding quarter last year. Management attributed the margin improvement to a better product mix, higher realizations, effective cost management and successful pass-through of higher raw material and freight costs.
The company’s core Wire Rope business remained the largest revenue contributor, generating Rs. 757 crore, up 18 percent YoY, and accounting for 73 percent of total sales. The Wire segment delivered even stronger growth, with revenue rising 31.7 percent YoY to Rs. 124 crore, while the LRPC business reported revenue of Rs. 89 crore, up 3.9 percent YoY. The diversified product portfolio enabled Usha Martin to capture demand across multiple industrial sectors while reducing dependence on any single business segment.
Strong Export Presence Supports Growth
Exports continued to remain a key strength for the company. International markets contributed 57 percent of total revenue during the quarter, while domestic business accounted for the remaining 43 percent. From an end-user perspective, engineering contributed 23 percent of revenue, followed by oil and offshore (21 percent), crane (17 percent), construction and infrastructure (9 percent) and elevators (9 percent). Such diversification provides resilience against cyclical slowdowns in individual industries.
One of the highlights of the quarter was the company’s ability to improve profitability despite rising steel prices. Steel prices increased to around Rs. 57,217 per tonne during Q1 FY27, yet EBITDA per tonne improved to Rs. 40,581, indicating better pricing discipline, operational efficiency and product mix.
This demonstrates the company’s ability to pass on higher input costs to customers while maintaining healthy margins, an important competitive advantage in the steel products industry. Usha Martin further strengthened its financial position during the quarter. The company ended June 2026 with a net cash position of Rs. 465 crore, compared to Rs. 332 crore at the end of FY26.
Operating cash flow increased to Rs. 242 crore, representing 116 percent cash conversion of operating EBITDA. Even after incurring Rs. 73 crore of capital expenditure, the company generated free cash flow of Rs. 135 crore, highlighting the strength of its cash-generating business model. The company’s return ratios also remained healthy, with ROCE improving to 21.4 percent, while working capital metrics remained stable, reflecting disciplined financial management.
The company’s earnings indicate continued strength in demand from engineering, infrastructure, oil and gas, mining and industrial sectors. Its diversified global customer base, improving product mix and strong export presence position it well to benefit from increasing investments in infrastructure, renewable energy, mining and industrial automation. With healthy cash flows, a net cash balance sheet and continued investments in capacity and efficiency, Usha Martin appears well placed to sustain profitable growth while maintaining financial discipline.
Incorporated in 1986, Usha Martin Limited is one of India’s leading manufacturers of high-performance steel wire ropes, wires, strands, LRPC strands and related accessories. The company serves industries including engineering, oil & gas, mining, construction, cranes, elevators, infrastructure and offshore applications. With manufacturing facilities in India, the UK, Thailand and the UAE, Usha Martin derives around 57 percent of its revenue from international markets, exporting products across Europe, the Americas, Asia-Pacific, the Middle East and Africa.
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