Usha Martin (517146) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 consolidated revenue was INR 908 crore, up 1.8% year-over-year, with the highest-ever operating EBITDA of INR 173 crore since the steel business divestment, driven by strong wire and wire rope segment performance.

• PAT from continuing operations rose to INR 128 crore, up 16.7% year-over-year, and net cash position at quarter-end was INR 111 crore, reflecting strong cash flow and balance sheet discipline.

• International business contributed 58% of total revenue, led by growth in Europe and the Americas, with stable demand and new customer wins.

• The company continued its transformation initiatives, focusing on operational discipline, product mix upgrades, and cost efficiency, with early benefits visible in Q2.

• Discontinued operations (Steel and Bright Bar Business) resulted in a loss of INR 1,780 lakh during the quarter.

Financial highlights

• Q2 FY26 revenue from operations was INR 908 crore (up 1.8% YoY); H1 FY26 revenue was INR 1,795 crore (up 4.5% YoY).

• Q2 FY26 operating EBITDA was INR 173 crore (19.1% margin), up from INR 151 crore (18% margin) in Q2 FY25.

• PAT from continuing operations was INR 128 crore in Q2 FY26 and INR 228 crore for H1 FY26.

• Operating cash flows before tax reached INR 390 crore in H1 FY26, with a 123% conversion of operating EBITDA to cash flow.

• Basic EPS for Q2 FY26 was INR 3.61; net cash flows from operating activities for H1 FY26 were INR 33,257 lakh.

Outlook and guidance

• Management expects a stronger H2 FY26, with volume growth anticipated as new capacities come online and market demand improves.

• Margins may moderate as LRPC volumes recover, but absolute EBITDA is expected to rise with higher throughput.

• Focus remains on R&D for advanced, application-specific products to capture high-value markets.

• Plasticated LRPC and Galfan wire volumes are expected to ramp up from Q4 FY26 and Q1 FY27.

• Management expects ongoing legal proceedings to have no material impact on operations.