Usha Martin Q1 FY27 results: Revenue INR 1,033 cr

Earnings call context and what stood out

Usha Martin Ltd (NSE: USHAMART) discussed its Q1 FY27 performance in an earnings conference call dated July 28, 2026, covering the quarter ended June 30, 2026. The call featured Managing Director Rajeev Jhawar, CFO Abhijit Paul, and Director Shreya Jhawar, with investor relations support from Devrishi Singh of CDR India. Management described the quarter as a strong start to FY27, led by growth in revenue and a sharp improvement in operating leverage. A key milestone highlighted was quarterly revenue crossing INR 1,000 crore for the first time. The company also pointed to cash generation and a net cash balance as notable balance sheet positives. The discussion focused on the drivers of margin expansion, segment trends, and FY27 capital expenditure and growth targets.

Consolidated Q1 FY27: revenue, EBITDA and profit

For Q1 FY27, consolidated revenue from operations rose 16.4% year on year to INR 1,033 crore, compared with INR 887.2 crore in Q1 FY26. Operating EBITDA increased to INR 208 crore from INR 144.6 crore, translating into year-on-year growth of 43.8% to 44% as stated across the shared materials. The EBITDA margin improved to 20.1% from 16.3%, an expansion of about 380 basis points. Profit after tax (PAT) increased to INR 142 crore from INR 100.8 crore to INR 101 crore, implying around 40.9% to 41% growth depending on the comparable base referenced. Profit before tax (PBT) was reported at INR 184.1 crore versus INR 129.6 crore a year ago, up 42.0%. Basic EPS for the quarter was stated at INR 4.66.

What drove the margin expansion to 20.1%

Management attributed profitability growth to a richer product mix, effective cost recovery, and stronger operating leverage. The improvement in EBITDA margin was positioned as a reflection of operational efficiency and cost management in the core Wire and Wire Ropes business. The company also reported an operating EBITDA per tonne (excluding UM Cables) of INR 40,581 for Q1 FY27. In the same set of disclosures, EBITDA per tonne was cited as up 42.4% year on year versus INR 28,502 in Q1 FY26 and 2.7% higher than INR 39,496 in Q4 FY26. Another operating data point shared was the rising share of value-added products within wire ropes. Value-added products were said to account for 73% of the wire rope business, compared with 70% in FY26.

Segment performance: where growth came from

From a segmental perspective, the wire rope business recorded revenue growth of 18% year on year. The wire and strand segment grew 31.7% year on year, making it the fastest-growing segment mentioned in the call highlights. The LRPC segment reported marginal growth of 3.9% year on year. The combination of segment growth and a higher value mix was presented as a contributor to improved profitability. While the disclosures emphasised margin and mix, they also tied the performance to cost recovery and operating leverage effects during the quarter. The company did not add new segment-level absolute revenue numbers in the provided materials beyond the growth rates.

Cash flow, free cash flow and net cash position

Cash generation was a major feature of the quarter’s narrative. Usha Martin reported operating cash flow before tax of approximately INR 242 crore, translating into cash conversion of about 116% of operating EBITDA. After funding capital expenditure of approximately INR 73 crore during the quarter, free cash flow was stated at INR 135 crore. The company closed Q1 FY27 with a net cash position of approximately INR 465 crore. Disclosures also noted that net cash increased from around INR 332 crore in March 2026 to about INR 465 crore at the end of the quarter. Management’s emphasis on cash conversion aligned with the quarter’s margin expansion and profit growth.

Capex plans and FY27 operational targets

During Q1 FY27, capital expenditure was approximately INR 73 crore. For the full FY27, management reiterated its expectation of capex in the range of INR 250 crore to INR 300 crore. Alongside capex guidance, management maintained volume growth guidance of 10% to 12% for FY27, with value growth expected at about 15%. The company also indicated it expects EBITDA margins to stay above 20%, with quarterly variation likely in the 20% to 21% range. These targets were described as unchanged, suggesting management confidence in sustaining the current profitability band. The commentary provided no additional numerical changes to these targets beyond reaffirmation.

Standalone snapshot and governance disclosures

On a standalone basis, net profit rose 37.7% to INR 97.6 crore from INR 70.9 crore. Standalone turnover increased 18.9% to INR 642.5 crore. Standalone PBT was reported at INR 129 crore compared with INR 95.2 crore in the year-ago period. In corporate governance disclosures, the Board of Directors approved the unaudited standalone and consolidated financial results at a meeting held on July 27, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by S.R. Batliboi & Co. LLP, the statutory auditors, under Regulation 33.

Stock move and investor positioning

Market commentary shared alongside the call noted the stock rose about 1% to around 507.1 from a previous close of 502.1. It was also described as trading near a 52-week high of 527.5. The move was presented in the context of revenue crossing INR 1,000 crore in a quarter and a step-up in margins to 20% plus. While the price reference helps frame sentiment, the more durable signal in the quarter was the combination of margin expansion, high cash conversion, and net cash build-up. Investors also tend to track whether management holds its guidance after a strong quarter, which Usha Martin did in this case.

Key numbers at a glance

Guidance and what the market will track next

A key focus for the next few quarters will be whether the company sustains the 20% plus margin band while executing its capex plan. Another watch item is whether the value-added mix, cited at 73% for wire ropes, continues to move higher, since management linked mix and cost recovery to profitability. Investors may also track cash conversion versus EBITDA as capex steps up through FY27. The segment growth rates disclosed for wire rope, wire and strand, and LRPC will remain useful indicators of demand and operating momentum.

Conclusion

Usha Martin’s Q1 FY27 performance combined double-digit revenue growth with faster profit growth, supported by a sharp margin improvement to 20.1%. Cash generation remained strong, enabling positive free cash flow and a net cash position of about INR 465 crore after quarterly capex of INR 73 crore. Management maintained FY27 guidance on volume growth, value growth, margin expectations, and capex of INR 250 crore to INR 300 crore. The next updates for investors will come through subsequent quarterly results and any further disclosures on execution against these stated FY27 targets.