Usha Martin EBITDA rises 16.5% as continuing PAT gains 5.9%

Usha Martin Limited reported operating earnings before interest, tax, depreciation and amortisation (operating EBITDA) of Rs. 201.9 crore in Q2 FY27, up 16.5% year on year, while profit after tax (PAT) from continuing operations rose 5.9% to Rs. 135.7 crore as other income declined 53.6% and depreciation increased 23.6%.

What did Usha Martin report in Q2 FY27?

Usha Martin reported consolidated revenue from operations of Rs. 1,000 crore in Q2 FY27, a 12.4% increase from Rs. 889.6 crore in Q2 FY26, while operating EBITDA rose faster than revenue. Operating EBITDA margin, calculated without other income, increased by 0.7 percentage points to 20.2% from 19.5%.

Sequentially, Usha Martin's Q2 FY27 revenue was 2.1% below Rs. 1,021.1 crore in Q1 FY27, and operating EBITDA was 3.0% below Rs. 208.3 crore. Continuing PAT declined 4.7% from Rs. 142.3 crore in Q1 FY27, while operating EBITDA margin edged down 0.2 percentage points from 20.4%.

For H1 FY27, Usha Martin recorded revenue of Rs. 2,021.1 crore, up 14.8% from Rs. 1,760.2 crore in H1 FY26. Operating EBITDA rose 28.5% to Rs. 410.2 crore and its margin increased to 20.3% from 18.1%, while continuing PAT increased 20.6% to Rs. 278 crore.

Why did Usha Martin's operating EBITDA outpace continuing PAT?

Usha Martin's operating EBITDA outpaced continuing PAT because the Rs. 28.6 crore year-on-year increase in operating EBITDA was partly offset by a Rs. 12.1 crore decrease in other income and a Rs. 6.4 crore increase in depreciation. Other income fell to Rs. 10.5 crore in Q2 FY27 from Rs. 22.6 crore a year earlier, and depreciation rose to Rs. 33.8 crore from Rs. 27.4 crore.

EBITDA including other income consequently increased 8.4% to Rs. 212.5 crore, less than the 16.5% rise in operating EBITDA. Profit before tax increased 6.5% to Rs. 179.3 crore, and tax increased 8.5% to Rs. 43.6 crore, resulting in continuing PAT of Rs. 135.7 crore. Finance costs declined 17.3% to Rs. 4.2 crore from Rs. 5.1 crore, partly mitigating the effect of lower other income.

The margin comparison shows the distinction between operating and reported earnings. Operating EBITDA margin improved to 20.2% from 19.5%, whereas EBITDA margin including other income declined to 21.2% from 22.0%; profit-before-tax margin fell to 17.9% from 18.9%. Usha Martin attributed the operating-margin expansion to favourable product mix, better realisations and focus on higher-value business.

Which Usha Martin segments drove Q2 FY27 revenue growth?

Usha Martin's Wire Rope and Wire segments drove Q2 FY27 revenue growth, while low-relaxation pre-stressed concrete (LRPC) revenue declined. Wire Rope revenue increased 12.9% year on year to Rs. 765 crore from Rs. 678 crore, and Wire revenue rose 35.1% to Rs. 123 crore from Rs. 91 crore.

LRPC revenue fell 11.3% to Rs. 57 crore from Rs. 64 crore in Q2 FY26 and was 36.1% below Rs. 89 crore in Q1 FY27. Wire Rope represented 77% of overall Q2 FY27 sales, compared with Usha Martin's stated 74% share in FY26; Wire represented 12% against 11%, while LRPC represented 6% against 9%.

Overall sales volume was flat year on year at 50 thousand metric tonnes in Q2 FY27. Wire volume rose 21.7% to 15 thousand metric tonnes, while Wire Rope volume declined 2.1% to 27 thousand metric tonnes and LRPC volume declined 22.2% to 8 thousand metric tonnes. In H1 FY27, Wire Rope supplied 75% of revenue, and value-added applications accounted for 71% of Wire Rope revenue.

How did Usha Martin's cash flow and balance sheet change?

Usha Martin generated operating cash flow before income tax of Rs. 413 crore in H1 FY27, equal to 101% of operating EBITDA of Rs. 410.2 crore. Free cash flow was Rs. 186 crore after capital expenditure of Rs. 143 crore during the half year.

Usha Martin reported net cash of Rs. 415 crore at September 2026, compared with Rs. 332 crore at March 2026, after dividend payments of Rs. 114 crore cited by management. Gross debt rose to Rs. 185 crore at September 2026 from Rs. 146 crore at FY26; the company's net-debt calculation includes investments in mutual funds.

Net working capital reduced to Rs. 1,207 crore at September 2026 from Rs. 1,228 crore at March 2026. Net working-capital days fell to 185 from 194, and net working capital as a share of last-twelve-month turnover declined to 30.0% from 32.9%; the current ratio moved to 3.2 from 3.3.

What is Usha Martin planning after Q2 FY27?

Usha Martin management expects a stronger second half of FY27, supported by domestic demand and progress in specialised products, although it did not provide a financial target. Management said domestic Wire Rope posted double-digit volume growth in Q2 FY27, while geopolitical uncertainty and elevated freight costs affected volumes in West Asia.

Usha Martin has commenced commissioning its elevator-rope capacity expansion and management expects the full incremental capacity to be operational by Q1 FY28. Management said H1 FY27 capital expenditure of Rs. 143 crore was directed towards specialised Wire Rope capabilities and cited progress in OceanFibre and an improving enquiry pipeline for plasticated LRPC.

Conclusion

Usha Martin's Q2 FY27 result shows operating profit expanding faster than continuing PAT: revenue increased 12.4%, operating EBITDA rose 16.5%, and the operating margin reached 20.2%, but lower other income and higher depreciation limited continuing PAT growth to 5.9%. Wire and Wire Rope supplied the revenue increase, while LRPC declined in revenue and volume.

The next disclosed items to watch are management's expectation of a stronger H2 FY27 and the planned completion of full elevator-rope expansion capacity by Q1 FY28. The presentation also leaves investors to track whether September 2026 net cash of Rs. 415 crore, H1 operating cash flow of Rs. 413 crore and working-capital days of 185 are maintained as specialised-product capital expenditure continues.