Financial Performance Highlights
Usha Martin Limited reported strong financial results for FY 2025-26 with consolidated revenue growth of 6.2% to ₹3,691.06 crore and PAT increase of 20.9% to ₹491 crore. Operating EBITDA improved by 18.1% to ₹705 crore with margins at 19.1%, while RoCE improved by 130 bps to 20.6%. The company generated robust operating cashflow of ₹736 crore (up 36.0%) and transitioned to a net cash position of ₹332 crore from net debt of ₹63 crore.
Capital Structure and Dividend
Standalone performance showed revenue of ₹2,31,203 lakhs with PAT of ₹35,313 lakhs including a ₹2,489 lakh loss from discontinued operations. The company prepaid all term loans during the year, reducing borrowings to zero, and declared a dividend of ₹3 per share totaling ₹9,137 lakhs. The Board has recommended a final dividend of ₹3.75 per equity share subject to shareholder approval.
AGM and Corporate Governance
The 40th Annual General Meeting is scheduled for August 20, 2026 through VC/OAVM with remote e-voting from August 17-19, 2026. The Board composition includes 7 directors (4 independent, 3 executive) with Mr. Chirantan Chatterjee appointed as Whole-time Director effective May 2025. The company maintains strong governance practices with regular committee meetings and comprehensive disclosures.
Legal and Regulatory Matters
Significant ongoing proceedings include ED provisional attachment of properties worth ₹190.37 crore and CBI investigations regarding iron ore sales from prior years. These matters are pending before Delhi High Court, Supreme Court, and trial courts with next hearings scheduled for May 2026. Management believes they have a strong case and has not recognized any financial impact. Additional tax and duty disputes total approximately ₹24,986 lakhs across various periods.
Operational and Segment Performance
The Group operates primarily in wire and wire ropes manufacturing with revenue of ₹3,61,307 lakhs from this segment. Property, plant and equipment stood at ₹1,47,958 lakhs with right-of-use assets of ₹8,155 lakhs. The company disclosed several properties not held in its name due to historical mergers totaling ₹4,710 lakhs of freehold land, with legal transfer processes ongoing since 1972-2013.
Subsidiaries and Related Parties
Material subsidiaries include Usha Martin UK Limited and Usha Siam Steel Industries Public Company Limited. Usha Martin España S.L. was voluntarily wound up effective December 2025. Key related party transactions include sales to subsidiaries of ₹68,911 lakhs and loans to subsidiaries of ₹460 lakhs outstanding.
Outlook and Forward Strategy
The company maintains a positive outlook driven by infrastructure growth in India and international opportunities in offshore wind, oil & gas, mining, and construction sectors. Planned annual investment of ₹200-250 crore for capacity expansion in high-growth segments, supported by the strong net cash position and improved operational efficiency.
Auditor Confirmation
S.R. Batliboi & Co. LLP issued unmodified audit opinions for both standalone and consolidated financial statements, while highlighting the ongoing ED and CBI proceedings as an emphasis of matter. The auditors confirmed proper revenue recognition and appropriate treatment of provisions and contingencies.