Usha Martin reported steady financial progress for Q2 H1 FY26, marked by disciplined operational execution. Consolidated revenues reached INR 908 crore. The Wire Rope business grew 2.6% year-over-year, driven by elevator and crane rope segments, while the Wires segment saw a 14.2% increase. Operating EBITDA stood at INR 173 crore, with a 19.1% margin. The company repaid INR 157 crore of debt, achieving a net cash position of INR 111 crore and a ROCE of 20.3%.
Financial Performance
Usha Martin’s Q2 H1 FY26 earnings call highlighted consistent financial advancement. Consolidated revenues for the quarter reached INR 908 crore. The Wire Rope business experienced a 2.6% year-on-year increase, driven by strong contributions from the elevator and crane rope segments. The Wires segment saw a significant 14.2% year-on-year revenue increase, reflecting sustained demand. LRPC division reported a 26% year-on-year decline.
Profitability and Margins
Operating EBITDA for the quarter was INR 173 crore, resulting in a margin of 19.1%. EBITDA per ton stood at approximately INR 35,000 per metric ton. A favorable product mix and ongoing cost efficiencies aided the improvement. The company anticipates that absolute EBITDA will rise with higher throughput, despite a possible moderation in margins as LRPC volumes recover.
Balance Sheet and Debt Reduction
Usha Martin continues to strengthen its financial health. During the first half of the year, it successfully repaid INR 157 crore of debt through internal accruals. Operating cash flows before tax stood at INR 390 crore, which translates to a 123% conversion of operating EBITDA to cash flow. The company’s net cash position at the close of the quarter was INR 111 crore, with a healthy ROCE of 20.3%.
Strategic Initiatives and Future Outlook
The company’s progress is attributed to capacity expansion, product development, and market diversification, which strengthens Usha Martin’s growth foundation. Though Q2 volumes were softer than expected, the company anticipates higher throughput and growth in the second half of the financial year. Usha Martin is focusing on value-added products and expanding its presence in key markets, including Saudi Arabia.
Segment Performance Details
The Wire segment delivered substantial growth, supported by sustained demand. The Wire Rope segment contributed significantly to the overall revenue, registering stable growth. Lower volumes of LRPC impacted volume growth during the quarter.
Update on Usha Martin Transformation
One Usha Martin transformation has been evolving and is working towards aligning global teams and operations with a unified vision. Cost awareness across the organization has also improved fixed expenses by more than 10% compared to FY25.
Source: BSE
