Usha Martin Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Usha Martin Ltd filed with BSE on 08 May 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 FY26 revenue of INR 3,691 crore and operating EBITDA of INR 705 crore, up from INR 597 crore last year, with margins expanding to 19.1%. Q4 revenue rose 9.3% year-on-year to INR 979 crore with EBITDA margins of 21.6%, aided by international rope demand, a richer product mix, and cost savings from the One Usha Martin program, though management said Middle East volumes were impacted by the ongoing conflict there. Management discussed capacity utilization, capex plans of about INR 300 crore over the next two years, and outlook for volume growth and margins in FY27.
Numbers mentioned
Consolidated revenue: INR 3,691 crore (FY26)
p. 2
“We closed FY26 with consolidated revenue of INR 3,691 crore.”
Rajeev Jhawar, page 2 of the filed PDF · View the filing
Operating EBITDA: INR 705 crore (FY26)
p. 2
“Operating EBITDA grew from INR 597 crore last year to INR 705 crore this year, reflecting a margin of 19.1%.”
Rajeev Jhawar, page 2 of the filed PDF · View the filing
Net cash position: INR 332 crore (FY26)
p. 2
“We ended the year with a net cash position of INR 332 crore compared to a net debt of INR 63 crore in the previous year.”
Rajeev Jhawar, page 2 of the filed PDF · View the filing
Q4 revenue: INR 979 crore (Q4 FY26)
p. 2
“In Q4, revenue stood at INR 979 crore, up 9.3% year-on-year.”
Rajeev Jhawar, page 2 of the filed PDF · View the filing
Q4 Operating EBITDA: INR 212 crore (Q4 FY26)
p. 2
“Operating EBITDA was INR 212 crore, the highest since the sale of the steel business with margins at 21.6% and EBITDA per ton at approximately INR 39,500 per metric ton.”
Rajeev Jhawar, page 2 of the filed PDF · View the filing
Rope revenue growth: 14.8% (Q4 FY26)
p. 4
“Rope revenues grew by about 14.8%.”
Abhijit Paul, page 4 of the filed PDF · View the filing
Wire revenue growth: 31.2% (Q4 FY26)
p. 4
“Wire revenues saw a notable 31.2% increase while LRPC was lower by 20.4%.”
Abhijit Paul, page 4 of the filed PDF · View the filing
PAT from continuing operations: INR 155 crore (Q4 FY26)
p. 4
“PAT from continuing operations stood at INR 155 crore.”
Abhijit Paul, page 4 of the filed PDF · View the filing
FY26 PAT from continuing operations: INR 491 crore (FY26)
p. 4
“PAT from continuing operations increased to INR 491 crore compared to INR 406 crore last year.”
Abhijit Paul, page 4 of the filed PDF · View the filing
International revenue share: 57% (FY26)
p. 4
“International revenues now account for 57% of total topline, up from 55% last year, reflecting good traction across global markets.”
Abhijit Paul, page 4 of the filed PDF · View the filing
Operating cash flow: INR 736 crore (FY26)
p. 5
“Operating cash flow stood at INR 736 crore, translating into a conversion of approximately 104% of operating EBITDA.”
Abhijit Paul, page 5 of the filed PDF · View the filing
Free cash flow: INR 457 crore (FY26)
p. 5
“After funding capex of INR 198 crore, free cash flow stood at INR 457 crore.”
Abhijit Paul, page 5 of the filed PDF · View the filing
Net working capital days: 194 days (FY26)
p. 5
“Even then net working capital days improved to 194 days from 199 days last year and ROCE improved to 20.6% from 19.3%.”
Abhijit Paul, page 5 of the filed PDF · View the filing
Rope volume growth: 5% (Q4 FY26)
p. 5
“So, in terms of volume growth for this quarter, volume growth in ropes was at about 5%.”
Shreya Jhawar, page 5 of the filed PDF · View the filing
Total rope capacity utilization: 75%
p. 10
“In terms of capacity, the total rope capacity now is about 140,000 tons, out of which we are, say, at about 75% utilization.”
Shreya Jhawar, page 10 of the filed PDF · View the filing
One Usha Martin cumulative cost savings: INR 65 crore to INR 70 crore (last 18 months)
p. 10
“So on the cost side, we have been able to get significant fixed costs about 3%, admin cost about 7%, so, all the cost savings we have taken at ‘One Usha Martin’, we have seen over the last 18 months, about INR 65 crore to INR 70 crore of cost savings that we have been able to make.”
Shreya Jhawar, page 10 of the filed PDF · View the filing
US market share of topline: 9% (FY26)
p. 7
“In terms of the growth, it went from 7% of our topline to 9% of our topline for this year.”
Shreya Jhawar, page 7 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.
Operating EBITDA margin — minimum of 20% · FY27
stated as an aspiration by Rajeev Jhawar
p. 6
“And earlier what we have been saying that to be between 18% to 19%, we feel that with the product mix and everything, at least we should be able to look at a minimum of 20% operating margin.”
Rajeev Jhawar, page 6 of the filed PDF · View the filing
Rope volume growth — 10% to 12% · next 2 to 3 years
stated conditionally by Rajeev Jhawar
p. 13
“We hope that both with a lower base and these product approvals and the markets which we have developed and the capability from the plant, we should be able to get to overall, of course, this includes Wire Rope as well as some specialized wires and plasticated LRPC in the entire basket, we hope to be able to get to that 10% to 12% volume growth for the next 2 to 3 years.”
Rajeev Jhawar, page 13 of the filed PDF · View the filing
Capital expenditure — close to INR 300 crore · next 2 years
stated firmly by Rajeev Jhawar
p. 9
“In next 2 years, we intend to spend close to INR 300 crore to increase our manufacturing capacity for elevator ropes and some more opportunities where we see for some specialized wires and also increasing our capacity of plasticated LRPC.”
Rajeev Jhawar, page 9 of the filed PDF · View the filing
Rope capacity addition — close to 6,000 tons
stated firmly by Rajeev Jhawar
p. 9
“So, we are planning to increase our rope capacity by close to 6,000 tons with this and almost 70% 75% of the capex would be going to expand this capacity.”
Rajeev Jhawar, page 9 of the filed PDF · View the filing
Plasticated LRPC volume — double from 2,500 to 4,000-4,500 tons · coming weeks
stated conditionally by Rajeev Jhawar
p. 16
“See, as far as plasticated LRPC, currently, we do around 2,500 tons a year. That will, based on the various approvals, we are hoping to get soon, enable us to double our quantity of plasticated LRPC from 2,500 to 4,000, 4,500 tons.”
Rajeev Jhawar, page 16 of the filed PDF · View the filing
Black LRPC volume — around 48,000 tons · FY27
stated firmly by Rajeev Jhawar
p. 8
“And the black LRPC, we will continue, and we expect even this year to do around 48,000 tons, similar to what we did last year, and the plasticated LRPC of close to 5,000 to 6,000 tons as the approvals convert into orders.”
Rajeev Jhawar, page 8 of the filed PDF · View the filing
Oceanfibre and plasticated LRPC scale-up — FY27 and beyond
stated as an aspiration by Rajeev Jhawar
p. 4
“We expect meaningful scale up in FY'27 and beyond.”
Rajeev Jhawar, page 4 of the filed PDF · View the filing
Thailand plant modernization — next 18 months
stated firmly by Rajeev Jhawar
p. 16
“I would say over the next 18 months, we will see a significant improvement in the operations of our Thailand plant.”
Rajeev Jhawar, page 16 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 Middle East disruption reduced Q4 rope volumes by about 900 tons, and the focus has shifted to specialized, higher-value products where tonnage growth is not always linear.
Answered by Shreya Jhawar
Asked by Aman Kr Sonthalia: Why has rope volume growth not picked up despite strong margins?
p. 6
“That being said, in this quarter, the rope volumes came in lower than our expectations as in the Middle East, because of the crisis, we did see demand being impacted because of the overall geopolitical situation.”
Shreya Jhawar, page 6 of the filed PDF · View the filing
Management said they have been able to pass on cost increases in wire and LRPC and expand margins in ropes through better product mix.
Answered by Shreya Jhawar
Asked by Aman Kr Sonthalia: Can margins be sustained given rising steel, gas and logistics costs?
p. 6
“We are happy to say that so far, we have been able to pass on the increase for the wire segment, LRPC segment, and that would continue.”
Shreya Jhawar, page 6 of the filed PDF · View the filing
Management attributed higher other income to an interest refund and lower interest cost to debt repayment across most geographies.
Answered by Abhijit Paul
Asked by Vinit Thakur: What drove the increase in other income and reduction in interest cost?
p. 8
“So, the other income for this current quarter includes the refund on which we have got interest, so that interest component of INR 19 crore is included in other income.”
Abhijit Paul, page 8 of the filed PDF · View the filing
Management said LPG costs roughly doubled but they are shifting part of consumption to natural gas, passing costs to customers, and have built inventory buffers to avoid disruption.
Answered by Rajeev Jhawar
Asked by Kartikeya Pandey: What is the LPG cost impact and is there risk of production disruption?
p. 11
“We have been able to pass on the cost, as a part of our product pricing to the customers.”
Rajeev Jhawar, page 11 of the filed PDF · View the filing
Management said their low base in Europe and the US, combined with new customer and OEM approvals, gives confidence in 10-12% volume growth over the next 2-3 years.
Answered by Rajeev Jhawar
Asked by Kamlesh Bagmar: Can volume growth exceed the industry's typical 6-7% given low market share in key regions?
p. 13
“We hope that both with a lower base and these product approvals and the markets which we have developed and the capability from the plant, we should be able to get to overall, of course, this includes Wire Rope as well as some specialized wires and plasticated LRPC in the entire basket, we hope to be able to get to that 10% to 12% volume growth for the next 2 to 3 years.”
Rajeev Jhawar, page 13 of the filed PDF · View the filing
Management clarified they are not guiding margins down, and that Q4's higher margin reflected a favorable mix shift with LRPC volumes down 20%, while the 20% figure is a minimum benchmark.
Answered by Rajeev Jhawar
Asked by Pawan: Why is management guiding margins down from Q4's 22% to a 20% benchmark despite favorable trends?
p. 15
“No, we are not saying that we are expecting to reduce it from 22% to 20%.”
Rajeev Jhawar, page 15 of the filed PDF · View the filing
Management said they do not disclose specific order book volumes but described strong visibility for value-added products in H1.
Answered by Rajeev Jhawar
Asked by Deeya: Can the company quantify its current order book?
p. 13
“No, sorry, we generally do not quantify these numbers.”
Rajeev Jhawar, page 13 of the filed PDF · View the filing
Risks flagged
Middle East conflict causing slower customer activity and project delays
p. 3
“The ongoing conflict in the Middle East led to slower customer activity and project delays in both Dubai and the Saudi Arabian markets.”
Rajeev Jhawar, page 3 of the filed PDF · View the filing
Supply chain disruption in the Middle East affecting shipment timing
p. 3
“Supply chain in this region were also disruptive, affecting the timing of some shipments.”
Rajeev Jhawar, page 3 of the filed PDF · View the filing
Tightness in raw material availability and input cost pressure from geopolitical situation
p. 3
“The broader geopolitical situation also created tightness in raw material availability, putting pressures on input costs.”
Rajeev Jhawar, page 3 of the filed PDF · View the filing
Rising LPG and propane costs
p. 11
“Of course, the cost has gone up from the earlier level of INR 60,000 per ton to around INR 120,000 to INR 130,000 per ton.”
Rajeev Jhawar, page 11 of the filed PDF · View the filing
Tariffs and trade uncertainties in the US market
p. 7
“So even though on the ground, it has its share of challenges around tariffs, trade uncertainties, etc., we do see good opportunities.”
Shreya Jhawar, page 7 of the filed PDF · View the filing
Delays in Parvatmala project execution and customer approvals
p. 16
“And also, there are some delays as we talk to the various customers in terms of their approvals.”
Rajeev Jhawar, page 16 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.