Usha Martin Ltd. net cash reaches Rs 415 crore after H1 capex

Usha Martin Ltd. ended September 2026 with Rs 415 crore of net cash, up from Rs 332 crore at March 2026, after Rs 143 crore of first-half (H1) FY27 capital expenditure, as operating cash flow before income tax reached Rs 413 crore, or 101% of operating earnings before interest, tax, depreciation and amortisation (EBITDA).

How did Usha Martin build Rs 415 crore of net cash?

Usha Martin built its Rs 415 crore net-cash position through H1 FY27 internal cash generation, with Rs 413 crore of operating cash flow before income tax against Rs 410.2 crore of operating EBITDA. The presentation reports net debt of negative Rs 415 crore at September 2026, meaning cash exceeded borrowings, and its net-debt definition includes investments in mutual funds.

Net cash increased by Rs 83 crore even as gross debt rose by Rs 39 crore from Rs 146 crore at March 2026 to Rs 185 crore at September 2026. Managing Director Rajeev Jhawar said Usha Martin also made dividend payments of approximately Rs 114 crore during H1 FY27, alongside the Rs 143 crore capital-expenditure outlay.

How did Usha Martin's leverage and coverage metrics change?

Usha Martin reported gross debt to equity of 0.05 times at September 2026, compared with 0.04 times at March 2026, while net debt to equity moved to negative 0.12 times from negative 0.10 times. The movement in net debt to equity reflects the increase in net cash to Rs 415 crore, despite the increase in gross debt during the six-month period.

Interest coverage rose to 45.8 times at September 2026 from 34.4 times in FY26 and 18.8 times in FY25. Return on capital employed (ROCE), calculated for continuing operations, was 21.6% at September 2026 versus 20.6% in FY26, while return on equity was 17.3% against 16.8% and fixed-asset turnover was 2.5 times versus 2.4 times.

How did Usha Martin improve working-capital efficiency?

Usha Martin reduced net working-capital days to 185 at September 2026 from 194 at March 2026, a reduction of nine days. Net working capital declined by Rs 21 crore to Rs 1,207 crore from Rs 1,228 crore, and the presentation attributes the movements to improved working-capital efficiency.

Net working capital as a share of turnover over the last 12 months fell to 30.0% at September 2026 from 32.9% at March 2026. The current ratio eased to 3.2 times from 3.3 times over the same period, while remaining above the 2.8 times reported at March 2025; the presentation excludes mutual-fund investments from net working capital.

What did H1 FY27 cash flow fund for Usha Martin?

Usha Martin's Rs 413 crore of operating cash flow before income tax funded Rs 143 crore of H1 FY27 capital expenditure and was accompanied by Rs 186 crore of free cash flow. Operating cash flow equalled 101% of operating EBITDA, compared with 104% in FY26 and 91% in FY25.

Management said the H1 investment was directed towards specialised wire-rope capabilities. Commissioning of the elevator-rope capacity expansion has begun, and management expects full incremental capacity to be operational by Q1 FY28; free cash flow was Rs 457 crore in FY26, compared with Rs 177 crore in FY25, while the Rs 186 crore reported at September 2026 covers H1 FY27.

What operating performance supported Usha Martin's cash conversion?

Usha Martin's H1 FY27 revenue from operations rose 14.8% year on year to Rs 2,021.1 crore, while operating EBITDA increased 28.5% to Rs 410.2 crore. Operating EBITDA margin expanded by 2.2 percentage points to 20.3% from 18.1% in H1 FY26, providing the operating earnings base for the 101% cash-conversion measure.

In Q2 FY27, operating EBITDA per tonne was Rs 40,733, 16.7% above Rs 34,915 a year earlier, while operating EBITDA margin reached 20.2% versus 19.5%. Wire Rope revenue rose 12.9% year on year to Rs 765 crore and Wire revenue increased 35.1% to Rs 123 crore, whereas LRPC revenue declined 11.3% to Rs 57 crore; management attributed profitability to product mix, domestic-market realisations and cost management.

What is Usha Martin's current credit rating?

Usha Martin held an IND AA- long-term issuer rating with a Stable outlook following India Ratings and Research Pvt. Ltd.'s July 2026 review. The agency also reaffirmed the IND A1+ rating for Usha Martin's short-term credit facilities, according to the presentation.

The rating chart covers reviews from July 2019 through July 2026, when the current AA- rating was recorded. The presentation pairs the July 2026 rating update with September 2026 indicators including Rs 415 crore of net cash and interest coverage of 45.8 times, but does not disclose a future rating target or review date.

Conclusion

Usha Martin's September 2026 disclosures show that operating cash flow exceeded operating EBITDA on the presentation's measure, allowing net cash to increase by Rs 83 crore from March 2026 despite Rs 143 crore of H1 FY27 capital expenditure and approximately Rs 114 crore of dividend payments. Working-capital days fell to 185, net working capital to turnover declined to 30.0%, and interest coverage increased to 45.8 times.

The next disclosed milestones are management's expectation of a stronger second half and full operation of the incremental elevator-rope capacity by Q1 FY28. Management also plans further specialised wire-rope expansion and operational-efficiency work across global operations, including Thailand; progress on those actions will be the next measure of how the H1 FY27 cash and profitability trends develop.