Usha Martin (517146) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 consolidated revenue reached INR 887 crore, up 7.4% year-over-year, with 10.4% volume growth, mainly from wire and wire rope segments.

• PAT for Q1 FY26 was INR 100.8 crore, down 2.9% year-over-year, with margins impacted by market pressures but supported by value-added products and operational discipline.

• The company remains net debt-free at the consolidated level, 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.

• Ongoing legal proceedings and land attachments have not affected operations, with management confident in its legal position.

Financial highlights

• Operating EBITDA for Q1 FY26 was INR 145 crore, with a margin of 16.3% and EBITDA per ton of INR 28,502.

• Net profit stood at INR 101 crore, slightly down from INR 104 crore in Q1 FY25.

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

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

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

Outlook and guidance

• Stronger growth trajectory expected in H2 FY26 as transformation and capacity expansion benefits materialize.

• Margins are expected to improve, targeting 18% EBITDA margin for FY26, with potential to reach 19-20% in FY27.

• Cost optimization initiatives to show full impact from Q3 FY26.

• Working capital days targeted to reduce by at least 10 days in the next quarter.

• Ongoing legal matters are not expected to impact business continuity.