Financial Performance Overview

Quarter Ended 30th June 2026 (Q1 FY27)

  • Consolidated revenue from operations: ₹1,033 crore (up 16.4% YoY from ₹887 crore)
  • Operating EBITDA: ₹208 crore (up 44% YoY from ₹145 crore)
  • EBITDA margin: 20.1% (380 basis point improvement YoY)
  • Profit after tax: ₹142 crore (up 41% YoY from ₹101 crore)
  • Operating cash flow before tax: ₹242 crore
  • Cash conversion: 116% of operating EBITDA
  • Free cash flow: ₹135 crore (after funding capex of ₹73 crore)
  • Net cash position: ₹465 crore
  • Return on capital employed: 21.4% (improved from 20.6% in March 2026)

Segmental Performance

Wire Rope Business

  • Revenue growth: 18% YoY
  • Value-added rope component: 73% of portfolio (vs 70% in FY26)
  • EBITDA per ton: ₹40,581

Wire and Strand Segment

  • Revenue growth: 31.7% YoY
  • Volumes: up approximately 19% YoY

LRPC Segment

  • Revenue growth: 3.9% YoY
  • Marginal growth despite volume decline due to improved product mix

Business Segment Highlights

Wire Ropes

  • Overall volumes marginally lower YoY due to Middle East operations
  • Value growth strong at 18% YoY despite volume decline
  • Domestic market: Volume growth ~12% YoY, value growth ~21% YoY
  • Healthy demand across crane, elevator and fishing segments
  • US market: Growth from elevator and mining segments
  • Europe market: Good traction across oil, offshore renewables and value-added services
  • Middle East: Volumes down ~28% due to geopolitical and market disruptions
  • Middle East realizations improved ~36% due to better pricing and favorable mix

Wires Portfolio

  • Largely domestic driven with exports representing growth opportunity
  • Supplying to European customers in high-value applications (automotive, rockfall protection)
  • GALSTAR brand (aluminum zinc coated wires) progressing well with domestic and export approvals

Plasticated LRPC

  • Continued traction in domestic and export markets
  • First international order for plasticated LRPC strand for stay cable application
  • Target volume for FY27: 3,500-4,000 tons (capacity: 6,000 tons annually)
  • FY26 volume: 2,500 tons

Oceanfibre (Synthetic Slings)

  • Building momentum across offshore and heavy lifting applications
  • Gross margins: 65-70%
  • Total addressable market: ₹1.5-2 billion
  • Current revenue: 2-3 million GBP, target to reach 10 million GBP over next few years
  • High-margin business with specialized, critical applications

Operational and Strategic Updates

Input Cost Management

  • Wire rod prices: ~7% higher YoY
  • Zinc prices: ~28% higher YoY
  • Freight costs: Remain elevated
  • Successfully implemented pricing actions across segments to pass through cost increases
  • Maintained 100% pass-through of commodity price increases

Capacity Expansion and Capex

  • Q1 FY27 capex: ₹73 crore
  • FY27 capex guidance: ₹250-300 crore
  • Focus on expanding specialized wire rope capacity and improving manufacturing efficiency
  • Key project: Elevator rope capacity expansion by ~6,000 metric tons per annum
  • Phased commissioning beginning October 2026
  • Project completion scheduled by Q1 FY28

Credit Rating Upgrade

  • Long-term credit rating upgraded by India Ratings and Research to IND AA- from IND A+
  • Stable outlook
  • Reflects strengthened financial profile, healthy cash generation and prudent capital allocation

Geographic Performance and Market Share

Middle East Operations

  • 9% of total revenue
  • Volume decline ~28% due to geopolitical conflict
  • Impacted segments: Port, marine, offshore, and construction business
  • Project delays across Saudi Arabia
  • Distributors taking conservative stocking approach

Market Share Position

  • US market: Sub-5% share, ~9-10% of total revenue
  • Europe market: ~27% of total revenue, 10-12% share
  • India market: 65-70% market share in wire ropes
  • Elevator ropes: 60-65% market share in India
  • Port segment: >95% market share in India

Guidance and Outlook

Volume Growth

  • Maintain 10-12% volume growth guidance for FY27
  • 15% value growth expected
  • Positive momentum expected in Americas, Europe and India markets

Margin Outlook

  • Target to maintain minimum EBITDA margin base of 20%
  • Expect margins to move upward as product mix improves
  • Quarterly variations expected in 20-21% range due to product and geographic mix

Replacement Market

  • 85% of business from replacement market
  • Replacement cycles vary by application: mining (1-2 weeks), ports (6-12 months), elevators (5-8 years)
  • Safety-mandated replacements provide predictability

Other Business Units

U M Cables

  • Not part of core business
  • Evaluating opportunities to use facility for value-added wire and wire rope business
  • Strategically located in Western India

Thailand Operations

  • Strategically located plant with strong customer base in ASEAN region
  • Margins improved in Q1 FY26
  • Evaluating integration with India plant for synergy benefits
  • Plan to enhance profitability within next 6 months

Regulatory and External Factors

CBAM Impact

  • Currently exposed to wires (product code 7217) exported to Europe
  • Appointed consultant to understand cost impact per ton
  • Wire ropes (7312) to come under CBAM in FY28
  • Working with suppliers to minimize overall impact
  • Emissions from processes negligible compared to input material

Management Commentary

  • Strong start to FY27 with healthy revenue growth, margin expansion and robust cash generation
  • Focus on value-led volume growth, improving product mix, and scaling newer verticals
  • "One Usha Martin" initiative to strengthen collaboration across global operations
  • Differentiated portfolio, long-standing customer relationships and strong balance sheet support confidence in delivering consistent profitable growth