Usha Martin (517146) Q4 25/26 earnings summary

Executive summary

• FY 2026 consolidated revenue reached INR 3,691 crores, up 6.2% year-over-year, with Q4 revenue at INR 979 crores, up 9.3% YoY; operating EBITDA was INR 705 crores with margins at 19.1%.

• PAT for FY26 was INR 491 crores, up 20.9% YoY; Q4 PAT was INR 155 crores, up 53.7% YoY.

• Net cash position improved to INR 332 crores from net debt of INR 63 crores last year.

• Free cash flow for FY26 was INR 457 crores, up 2.5x over FY25, with CapEx of INR 198 crores fully funded by internal accruals.

• International revenues comprised 57% of total revenue, reflecting strong global traction.

Financial highlights

• Q4 rope revenues grew 14.8% YoY; LRPC revenues declined 20.4% YoY; Wire segment up 31.2% YoY in Q4.

• Operating EBITDA margin improved to 21.6% in Q4 FY26 from 15.6% in Q4 FY25.

• ROCE increased to 20.6% in FY26 from 19.3% in FY25.

• Operating cash flow for FY26 was INR 736 crores, with free cash flow at INR 457 crores after CapEx.

• Basic EPS for FY26 was Rs. 15.30, up 14.4% YoY.

Outlook and guidance

• Targeting 10%-12% volume growth for the next 2-3 years, driven by value-added rope applications and new business verticals.

• Confident of sustaining operating margins at or above 20% due to improved product mix and cost discipline.

• CapEx of INR 300 crores planned over the next two years to expand rope and specialized wire capacities.

• Management expects continued momentum in specialty product portfolio, supported by healthy demand across key end-markets.

• Focus remains on optimizing inventory turns and receivables to further improve cash conversion in FY27.