Credit Rating Update
Usha Martin Reports Strong Q1 FY27 Results with 41% Growth in PAT
NSE
USHAMART
BSE
517146
- Usha Martin Limited reported a strong start to FY27 with consolidated revenue rising 16.4% YoY to ₹1,033 crore, Operating EBITDA increasing 43.8% YoY to ₹208 crore, and PAT growing 40.9% YoY to ₹142 crore. Margin expansion, healthy cash generation, and continued capacity investments supported the quarterly performance
PRICE-SENSITIVE TRIGGER
Event: Usha Martin announced its unaudited financial results for the quarter ended June 30, 2026.
Type: Quarterly Financial Results
Impact: Positive
Immediate Effect: The company delivered double-digit revenue growth, strong margin expansion, and robust profit growth, indicating healthy operational performance despite higher input and freight costs
Metrics:
Financial Metrics:
- Revenue: ₹1,033.0 crore (+16.4% YoY)
- Operating EBITDA: ₹208.0 crore (+43.8% YoY)
- Operating EBITDA Margin: 20.1% (up from 16.3%)
- PBT: ₹184.1 crore (+42.0% YoY)
- PBT Margin: 17.8% (up from 14.6%)
- PAT: ₹142.0 crore (+40.9% YoY)
- Basic EPS: ₹4.66 per share
Highlight:
- Operating EBITDA grew 43.8% YoY to ₹208 crore, while EBITDA margin expanded by 380 basis points to 20.1%, reflecting improved profitability. .
What Happened ?
Usha Martin reported a strong first quarter of FY27 driven by higher revenue, significant operating margin expansion, and robust earnings growth. Revenue crossed the ₹1,000 crore milestone for the first time in a quarter, while disciplined cost management, an improved product mix, and timely pricing actions helped offset higher raw material and freight costs.
key details
Business & Operational Highlights
- Revenue increased 16.4% YoY to ₹1,033 crore.
- Operating EBITDA rose 43.8% YoY to ₹208 crore.
- EBITDA margin improved to 20.1% from 16.3%.
- Rope business recorded healthy growth across India, the US, and Europe, supported by higher-value applications.
- Middle East rope volumes remained impacted by ongoing geopolitical conflict.
- Wires business delivered around 19% volume growth, with revenue increasing approximately 32%.
- Operating cash flow stood at ₹242 crore during the quarter.
- The company ended Q1 FY27 with net cash of approximately ₹465 crore.
- Capital expenditure of around ₹73 crore was incurred to expand specialised wire rope capacity and improve manufacturing efficiency.
- The company’s long-term credit rating was upgraded to IND AA-/Stable during the quarter.
Note:
- Management remains focused on value-led volume growth, expanding newer product verticals such as plasticated LRPC and OceanFibre, while strengthening global operations under its “One Usha Martin” strategy..
Risk Analysis
Summary:
- Despite strong financial performance, the company continues to face input cost inflation, freight cost pressures, and geopolitical challenges affecting certain export markets.
Key Risks:
- Higher raw material and freight costs may impact future margins.
- Geopolitical tensions continue to affect demand in the Middle East.
- Future performance depends on sustained demand across global infrastructure and industrial sectors.
- Capital expansion projects must be executed efficiently to deliver expected returns
Worst Case:
- A slowdown in global industrial demand combined with sustained cost inflation and prolonged geopolitical disruptions could reduce profitability and delay growth initiatives.
Risk Level: Medium
Company Commentary
- Revenue crossed the ₹1,000 crore milestone during Q1 FY27.
- Improved product mix, disciplined cost management, and pricing actions supported profitability.
- Strong operating cash generation has strengthened the balance sheet and supports ongoing growth investments.
- The company will continue focusing on specialised products, new business verticals, and global integration under the One Usha Martin strategy.
- Management remains confident of delivering consistent and profitable growth across key markets.
Official Exchange Filing: Usha Martin Limited
