Usha Martin Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Usha Martin Ltd filed with BSE on 03 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Usha Martin reported consolidated Q1 FY27 revenue of INR 1,033 crore, up 16% year-on-year, with operating EBITDA of INR 208 crore, up 44%, and an EBITDA margin of 20.1%. Management attributed the growth to value outpacing volume across segments, improved realizations, and a shift toward specialized products, while noting a roughly 28% volume decline in the Middle East due to geopolitical disruptions. The company generated operating cash flow of approximately INR 242 crore and closed the quarter with a net cash position of approximately INR 465 crore.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Consolidated revenue: INR 1,033 crore (Q1 FY27)
p. 2
“Consolidated revenue increased by 16% year-on-year to INR 1,033 crore.”
Shreya Jhawar, page 2 of the filed PDF · View the filing
Operating EBITDA: INR 208 crore (Q1 FY27)
p. 2
“Operating EBITDA stood at INR 208 crore, a 44% increase year-on-year with an EBITDA margin of 20.1%.”
Shreya Jhawar, page 2 of the filed PDF · View the filing
Profit after tax: INR 142 crore (Q1 FY27)
p. 5
“Profit after tax for the quarter grew to INR 142 crore from INR 101 crore, registering a growth of 41% year-on-year.”
Abhijit Paul, page 5 of the filed PDF · View the filing
EBITDA margin: 20.1% (Q1 FY27)
p. 5
“This is visible from our EBITDA margin as well, which improved to 20.1%, a 380-basis point increase year-on-year.”
Abhijit Paul, page 5 of the filed PDF · View the filing
EBITDA per ton: INR 40,581 (Q1 FY27)
p. 5
“This has enabled us to achieve an EBITDA per ton of INR 40,581.”
Abhijit Paul, page 5 of the filed PDF · View the filing
Operating cash flow before tax: INR 242 crore (Q1 FY27)
p. 5
“Our operating cash flow before tax stood at INR 242 crore, translating into a cash conversion of approximately 116% of operating EBITDA.”
Abhijit Paul, page 5 of the filed PDF · View the filing
Free cash flow: INR 135 crore (Q1 FY27)
p. 5
“After funding capex of INR 73 crore, free cash flow stood at INR 135 crore.”
Abhijit Paul, page 5 of the filed PDF · View the filing
Net cash position: approximately INR 465 crore (Q1 FY27)
p. 4
“closed the quarter with a net cash position of approximately INR 465 crore.”
Shreya Jhawar, page 4 of the filed PDF · View the filing
Return on capital employed: 21.4% (Q1 FY27)
p. 5
“Our return on capital employed improved to 21.4% from 20.6% as on March '26.”
Abhijit Paul, page 5 of the filed PDF · View the filing
Capital expenditure: approximately INR 73 crore (Q1 FY27)
p. 4
“During the quarter, we incurred capital expenditure of approximately INR 73 crore.”
Shreya Jhawar, page 4 of the filed PDF · View the filing
Wire Rope segment revenue growth: 18% (Q1 FY27 YoY)
p. 5
“the Wire Rope business recorded revenue growth of 18% year-on-year, while the wire and strand segment grew 31.7% year-on-year.”
Abhijit Paul, page 5 of the filed PDF · View the filing
Value-added rope share: 73% (Q1 FY27)
p. 5
“Within Wire Rope, the value-added rope component stood at 73% compared to 70% in FY26.”
Abhijit Paul, page 5 of the filed PDF · View the filing
Middle East revenue share: 9% (Q1 FY27)
p. 14
“I think as a part of our top line, we are about 9% of our revenue comes from the Middle East.”
Rajeev Jhawar, page 14 of the filed PDF · View the filing
Domestic market share: 65% to 70%
p. 11
“So of course, domestic market is very important for our 65% to 70% market share we do have in the domestic market.”
Shreya Jhawar, page 11 of the filed PDF · View the filing
Credit rating: IND AA- (Q1 FY27)
p. 5
“the Company's long-term credit rating was upgraded by India Ratings and Research to IND AA- from IND A+ with a stable outlook.”
Abhijit Paul, page 5 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Capex — INR 250 crore to INR 300 crore · FY27
stated firmly by Shreya Jhawar
p. 4
“For FY27, we continue to expect capex of approximately INR 250 crore to INR 300 crore.”
Shreya Jhawar, page 4 of the filed PDF · View the filing
Elevator rope capacity expansion — approximately 6,000 metric tons per annum · commissioning begins October, completion by Q1 FY28
stated firmly by Shreya Jhawar
p. 4
“The additional capacity is expected to be commissioned in phases beginning October with the project scheduled for completion by the first quarter of FY28.”
Shreya Jhawar, page 4 of the filed PDF · View the filing
Volume growth — 10% to 12% · FY27
stated conditionally by Rajeev Jhawar
p. 8
“we feel and we still maintain that we will be able to get to 10% to 12% growth of volume in this financial year.”
Rajeev Jhawar, page 8 of the filed PDF · View the filing
Value growth — around 15% · FY27
stated conditionally by Rajeev Jhawar
p. 9
“about INR 250 crore to INR 300 crore would be the capex, including routine capex or maintenance capex on a yearly basis for us to be able to continue with the topline growth of 10% to 12% in terms of volume and around 15% on value.”
Rajeev Jhawar, page 9 of the filed PDF · View the filing
EBITDA margin — minimum of 20%
stated conditionally by Rajeev Jhawar
p. 9
“we should be able to see it moving upwards. So we are fairly positive that the new base would be at around 20%, with a minimum of 20%.”
Rajeev Jhawar, page 9 of the filed PDF · View the filing
Plasticated LRPC volumes — 3,500 to 4,000 tons · FY27
stated conditionally by Shreya Jhawar
p. 10
“This year, our target is 3,500 to 4,000 tons.”
Shreya Jhawar, page 10 of the filed PDF · View the filing
Oceanfibre revenue — 10 million GBP · over the next few years
stated as an aspiration by Shreya Jhawar
p. 7
“our goal is to see how we can take this from 2 million to 3 million GBP level that it is now to, say, 10 million GBP level over the next few years.”
Shreya Jhawar, page 7 of the filed PDF · View the filing
Thailand plant profitability plan — next 6 months
stated firmly by Rajeev Jhawar
p. 15
“I would say in the next 6 months, we would be in a position to have a fairly well-evolved plan for this, which should create a long-term improved profitability coming from our Thailand plant.”
Rajeev Jhawar, page 15 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said rope volumes were marginally lower due to a 28% decline in the Middle East from geopolitical conflict and project delays in Asia Pacific, while other geographies grew.
Answered by Rajeev Jhawar
Asked by Aman Sonthalia: How did wire rope volumes perform and what is the volume loss from the Middle East crisis?
p. 6
“volumes came in lower in the Middle East, which declined around 28% due to the ongoing geopolitical conflict.”
Rajeev Jhawar, page 6 of the filed PDF · View the filing
Management maintained its 10-12% volume growth guidance for the year, citing available capacity and strong inquiries despite Middle East losses.
Answered by Rajeev Jhawar
Asked by Rajesh Majumdar: When will wire rope volumes see an uptick given flattish trends?
p. 8
“we feel and we still maintain that we will be able to get to 10% to 12% growth of volume in this financial year.”
Rajeev Jhawar, page 8 of the filed PDF · View the filing
Management said they focus on maintaining a 20% margin base rather than per-ton margins, and passed through cost increases.
Answered by Rajeev Jhawar
Asked by Rajesh Majumdar: What is the margin impact from LRPC price declines and will it affect next quarter?
p. 9
“our focus is to at-least maintain a base of 20%, based on all the various initiatives which the Company has taken over a period of time.”
Rajeev Jhawar, page 9 of the filed PDF · View the filing
Management estimated a $1.5-2 billion TAM with gross margins of 65-70%, citing the product's specialized, high-value nature.
Answered by Shreya Jhawar
Asked by Varun Jain: What is the total addressable market and margin profile of Oceanfibre?
p. 9
“So, the total addressable market for this would be about 1.5 billion to 2 billion is what we have estimated.”
Shreya Jhawar, page 9 of the filed PDF · View the filing
Management said verbal confirmation was received on a major approval though paperwork is delayed, with FY27 target volumes of 3,500-4,000 tons versus 6,000 ton capacity.
Answered by Shreya Jhawar
Asked by Varun Jain: Have plasticated LRPC approvals come through and will FY27 volumes reach 6,000 tons?
p. 10
“Verbally, we have gotten confirmation on that, but some paperwork is still getting a little bit delayed, but it is all progressing well and it is in place and the party has already started quoting with our product in the market.”
Shreya Jhawar, page 10 of the filed PDF · View the filing
Management said margins could vary quarter to quarter in a 20-21% range but the goal is a minimum of 20% moving upward.
Answered by Rajeev Jhawar
Asked by Vinit Thakur: What is the sustainable EBITDA margin going forward?
p. 12
“there could be a quarter-on-quarter variation in terms of margin in the 20% to 21% range due to the product segment and also in the geographic mix where we are selling our products.”
Rajeev Jhawar, page 12 of the filed PDF · View the filing
Management said cables is non-core and being evaluated for repurposing, while Thailand is being restructured for better profitability with a plan expected in six months.
Answered by Rajeev Jhawar
Asked by Shivkumar Prajapati: Is there a turnaround strategy for UM Cables and the Thailand segment?
p. 15
“long term, on the cable side, we do not see that as a business which we would like to be in.”
Rajeev Jhawar, page 15 of the filed PDF · View the filing
Management explained that the absolute steel price increase is passed through rather than a percentage of the finished product price, so margins don't scale with the percentage increase.
Answered by Rajeev Jhawar
Asked by Shraddha Kapadia: Why did EBITDA per ton grow only 3% despite a 13% rise in steel prices?
p. 17
“So, you cannot take the percentage of steel price increase of 13% to increase the price of your finished product by 13% of the wire rope, which is sold.”
Rajeev Jhawar, page 17 of the filed PDF · View the filing
Risks flagged
Middle East geopolitical conflict disrupting ports, marine, offshore and construction demand
p. 6
“Projects across Saudi Arabia have been delayed or stalled. The distributors in this region have also taken a conservative approach to stocking.”
Rajeev Jhawar, page 6 of the filed PDF · View the filing
Higher input costs from wire rod and zinc prices
p. 4
“Wire rod prices were approximately 7% higher year-on-year, while zinc prices increased by around 28%.”
Shreya Jhawar, page 4 of the filed PDF · View the filing
Elevated freight costs
p. 4
“Freight costs also remain elevated.”
Shreya Jhawar, page 4 of the filed PDF · View the filing
Project-related delays in Asia Pacific region
p. 6
“The second factor was the Asia Pacific region, where we saw some project-related delays during the quarter.”
Rajeev Jhawar, page 6 of the filed PDF · View the filing
LRPC realization pressure from monsoon and project slowdown
p. 13
“on the LRPC side, we are seeing a slight depression in terms of the realizations because of the ongoing monsoon and the project slowdown in the states.”
Rajeev Jhawar, page 13 of the filed PDF · View the filing
Future CBAM cost impact on wire and wire rope exports to Europe
p. 16
“we are also trying to understand what the cost impact per ton would be for wire rope.”
Shreya Jhawar, page 16 of the filed PDF · View the filing
Uncertainty and volatility from West Asia crisis affecting business outlook
p. 14
“West Asia crisis is already impacting our topline as of now.”
Rajeev Jhawar, page 14 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.