In , Usha Martin Ltd (Steel - Wires) is outperforming Nifty 500 with +14.8% relative strength. Fundamentals: Strong. On a 4-week streak.
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
Based on Q3 FY26 earnings • Updated Apr 19, 2026
What: Value-added share of Wire Ropes: 70%
Impact: INR 1 lakh margin differential
“And within Wire Ropes, 70% is value added. And if you see the difference in margin, the difference is around 1 lakh in margin.”
What: Net Cash Position: INR 198 crore
“We closed the quarter with a net cash position of INR198 crore and a ROCE of 20%.”
What: New Customer Count (Saudi): 60
“A good example of this is Saudi Arabia. Since starting our Rigging business there, we have added around 60 new customers.”
What: Capacity Utilization: 75%
“And our capacity utilization in Ranchi facility is around 75% at the moment, after this addition. That is related to the rope capacity.”
What: Ocean Fiber Brand: Cash positive in Year 1
“But I am happy to say that in the very first year, we would be cash positive in this business.”
What: EBITDA Margin of 19.2% vs 18% guidance.
“During the quarter, this was driven by higher traction in elevator ropes, crane ropes and oil and offshore ropes, where requirements are more engineering-driven.”
Earnings deceleration risks from management commentary
Trigger: Retrospective effect of the new labor code provisions.
Impact: PAT impact: INR 13 crore
Management view: Management stated this is a one-time provision; future recurring impact on gratuity is less than INR 1 crore annually.
Monitor: labor
Trigger: Regulatory shift in Europe requiring carbon emission reporting and potential levies on steel products.
Management view: Setting up a 4-megawatt solar plant in Ranchi and calculating direct/indirect emissions to minimize impact.
Monitor: climate
Trigger: Global commodity price volatility affecting input costs.
Management view: Wire and LRPC are pass-through; Wire Rope margins are protected through mix management.
Monitor: commodity
Key quotes from recent conference calls
“I think earlier you had guided 18% margin in FY '26 and 19% to 20% margin in FY '27. [Previous EBITDA Margin guidance]”
“Yes. Our capex including our maintenance capex, would be close to INR 300 crore to INR 350 crore a year. [Previous Capex guidance]”
“Over the past year, we have simplified our processes and policies, improved productivity and rationalize overheads under the One Usha Martin framework. [Initiative: One Usha Martin Framework]”
“Since starting our Rigging business there, we have added around 60 new customers... we expect volumes from this base to scale up. [Initiative: Saudi Arabian Rigging Business]”
Headline numbers from the latest earnings call
Revenue
INR 917 crore
Why: Growth was driven by a better product mix and steady demand trends across key markets, particularly in the Wire segment.
Revenue growth was supported by a 20.2% increase in the Wire segment despite a decline in LRPC.
EBITDA
INR 176 crore
Why: Profitability improved due to a favorable sales mix, operating leverage, and sustained cost discipline under the One Usha Martin framework.
EBITDA margins expanded significantly year-on-year due to the shift toward value-added products.
PAT
INR 107 crore
Why: PAT increased year-on-year despite a one-time cost impact of INR 13 crore from the implementation of the Wage Code.
The one-time labor provision impacted the sequential PAT performance.
Other Highlights
• Operating cash flow before tax stood at INR 561 crore, a 114% conversion of EBITDA.
• Net cash position improved to INR 198 crore from INR 111 crore in the previous quarter.
• Gross debt reduced to INR 172 crore as of December 2025 from INR 338 crore in March 2025.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Value-Added Share of Wire Ropes
70%
Why: Strategic choice to focus on high-contribution products like elevator and crane ropes.
EBITDA per Metric Tonne
INR 33,350
Why: Reflects the benefit of the One Usha Martin framework and product mix.
Ranchi Rope Capacity Utilization
75%
Why: Calculated after the recent 19,000-ton capacity addition.
Working Capital Cycle
199 days
Why: Management is targeting a reduction to 180 days through digital tracking.
Net Cash Position
INR 198 Cr
Why: Strong free cash flow generation and debt repayment.
Wire Rope % of Total Revenue
73%
Why: Core business segment focus.
Elevator Rope % of Top Line
9% to 10%
Why: Growth in Tier 2 and Tier 3 cities driving domestic demand.
LRPC Revenue Growth (YoY)
-13%
Why: Market for black LRPC has become commoditized.
Forward-looking targets from management for FY27
Revenue Growth Target
10%
OPM Guidance
19.5%
Capex Plan
₹250 Cr
10% to 11%
Targeting to maintain margins between 19% to 20%.
INR 250 crore to INR 300 crore
Brownfield expansion, debottlenecking, and maintenance (INR 50 crore).
Combined volume growth in Wire and Rope segments targeted at 12% to 15%.
Guidance Changes
Annual Capex: INR 300 crore to INR 350 crore → INR 250 crore to INR 300 crore
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +9% | +4% | Stable |
| PAT (Net Profit) | +47% | +10% | Inflection Up |
| OPM | 22.0% | +600 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Usha Martin Ltd's latest quarterly results (Mar 2026) show
Usha Martin Ltd's profit is growing with an turning around (inflection up) trend.
Usha Martin Ltd's revenue growth trend is stable.
Usha Martin Ltd's operating margin is volatile.
Usha Martin Ltd's long-term compounding rates
Usha Martin Ltd's earnings growth is turning around (inflection up) with mixed signals on a sequential basis.
Usha Martin Ltd's trailing twelve month (TTM) performance
Usha Martin Ltd appears significantly overvalued based on our fair value analysis.
Usha Martin Ltd's current PE ratio is 28.6x.
Usha Martin Ltd's current PE is 28.6x.
Usha Martin Ltd's price-to-book ratio is 4.4x.
Usha Martin Ltd is rated Strong with a fundamental score of 63.02/100. This score is calculated from objective financial metrics
Usha Martin Ltd has a debt-to-equity ratio of N/A.
Usha Martin Ltd's return ratios over recent years
Usha Martin Ltd's operating cash flow is positive (FY2026).
Usha Martin Ltd's current dividend yield is 0.63%.
Usha Martin Ltd's shareholding pattern (Mar 2026)
Usha Martin Ltd's promoter holding has remained stable recently.
Usha Martin Ltd has been outperforming Nifty 500 for 4 consecutive weeks, indicating building momentum.
Usha Martin Ltd is an established outperformer with 4 weeks of consecutive Nifty 500 outperformance.
Usha Martin Ltd has 6 key growth catalysts identified from recent earnings analysis
Usha Martin Ltd has 3 key risks worth monitoring
In Q3 FY26, Usha Martin Ltd's management highlighted
Usha Martin Ltd's management has provided the following forward guidance for FY27
Usha Martin Ltd's most important sub-sector-specific KPIs from the latest concall
Based on quantitative research signals, here is why Usha Martin Ltd may be worth studying
Usha Martin Ltd investment thesis summary:
Usha Martin Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
