Usha Martin Q1 FY27 Results (NSE: USHAMART)
Signal: Margin expansion
The read
Usha Martin delivered its 4th consecutive quarter of margin expansion — OPM expanded 600bps YoY to 22.0% — driven by a combination of favourable input costs, operating leverage on employee costs, and a continued shift toward value-added wire product mix. PAT growth of 40.8% YoY was further supported by a 37.6% decline in finance costs. The core Wire & Wire Ropes business continues to perform strongly, while the telecom cables segment remains a minor drag. The only overhang is the ongoing legal proceedings (ED/CBI) flagged by the auditor as an emphasis of matter, but management has received legal opinion that no adjustment is needed.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,033 Cr | 16.4% | 5.5% |
| EBIT | ₹188.02 Cr | 36.7% | |
| Net profit | ₹142.04 Cr | 40.8% | |
| EPS | ₹4.66 | 40.8% | |
| EBIT margin | 22.0% |
P&L walk
Revenue growth of 16.4% YoY was driven by both volume and mix, with the core Wire & Wire Ropes segment (99% of segment revenue) leading. Gross margin expanded significantly, with raw material costs as % of revenue falling from 50.6% (Q1FY26) to an estimated 44.9% (implied by cost of materials consumed + purchases + inventory change of ₹51,934 lakh vs revenue of ₹1,03,300 lakh). This, combined with employee cost leverage (employee cost +12.8% vs revenue +16.4%), drove EBITDA margin up 600bps YoY to 22.0%. Finance costs declined 37.6% YoY, further boosting PAT growth to 40.8%. Other income fell sharply but was not a swing factor.
Segments
The Wire & Wire Ropes segment drives the group — its revenue grew 17.3% YoY and segment result rose 41.4% YoY (segment margin expanding from 15.6% to 18.8%). The Others segment (telecom cables) slipped into a small loss (₹22 lakh vs ₹150 loss in Q1FY26), but its contribution is negligible (<2% of segment revenue).
Key positives
- Revenue grew 16.4% YoY to ₹1,033 Cr, accelerating from 6.5% in Q3FY26 and 9.3% in Q4FY26.
- OPM expanded 600bps YoY to 22.0%, the highest in at least 8 quarters — driven by raw material tailwind and operating leverage.
- PAT grew 40.8% YoY to ₹142 Cr, with EPS rising to ₹4.66 from ₹3.31.
- Finance costs declined 37.6% YoY, reflecting lower debt.
- Credit rating upgraded to 'IND AA-' from 'IND A+' by India Ratings in July 2026.
Key concerns
- Other income fell 44.6% YoY to ₹8.6 Cr (base included tax refund interest), but was still a minor contributor.
- QoQ PAT declined 8.4% from ₹155 Cr in Q4FY26 (which had an exceptional item benefit of ₹3.5 Cr).
- Ongoing legal proceedings (ED/CBI) remain unresolved, with auditor's emphasis of matter.
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