Usha Martin (517146) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 consolidated revenue grew 6.6% year-on-year to INR 917 crore (Rs. 91,705 lakhs), led by a better product mix, steady demand, and value-added products.

• Operating EBITDA increased 23.3% year-on-year to INR 176 crore, with margins improving to 19.2% from 16.6% in Q3 FY25.

• Net profit for Q3 FY26 was INR 107 crore (Rs. 10,767 lakhs), up from INR 92 crore, despite a one-time INR 13 crore (Rs. 1,335 lakhs) Wage Code cost.

• Strong cash flow generation and a net cash position of INR 198 crore as of Dec'25, reflecting robust balance sheet and financial discipline.

• Board approved Employee Stock Option Plan-2024, with 3,41,500 shares acquired through the ESOP Trust.

Financial highlights

• Q3 FY26 consolidated revenue: INR 917 crore (Q3 FY25: INR 861 crore); operating EBITDA: INR 176 crore (Q3 FY25: INR 143 crore); margin improved to 19.2%.

• Net profit: INR 107 crore (Q3 FY25: INR 92 crore), despite INR 13 crore one-time Wage Code cost.

• Nine-month FY26 revenue: INR 2,712 crore, up 5.2% year-on-year; EBITDA: INR 494 crore (up from INR 458 crore).

• Free cash flow for nine months: INR 318 crore; gross debt reduced from INR 338 crore to INR 172 crore.

• Exceptional item of Rs. 1,335 lakhs recognized due to new labour codes; other income included Rs. 1,540 lakhs from property sale.

Outlook and guidance

• Expecting volume growth from new product areas (GALSTAR wires, value-added ropes, plasticated LRPC) as customer approvals progress.

• Gradual ramp-up in Saudi Arabia and Thailand operations anticipated over the next 4–6 quarters.

• Early double-digit revenue growth expected in FY27, with margins maintained at 19–20%.

• CapEx guidance of INR 250–300 crore annually for the next 2–3 years, focused on brownfield and debottlenecking projects.

• The Group continues to monitor the finalization of rules and clarifications on the new labour codes.