This article first appeared on GuruFocus .
Release Date: January 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Consolidated revenues for the quarter grew 6.6% year on year to INR917 crore, driven by a better product mix and steady demand trends.
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The wire segment demonstrated strong momentum, delivering a 20.2% year on year increase in revenues.
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Operating EBITDA for the quarter stood at INR176 crore, representing a strong 23.3% year on year increase.
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Operating cash flow before tax stood at INR561 crore, translating into a robust 114% conversion of operating EBITDA into cash.
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The company closed the quarter with a net cash position of INR198 crore and an ROC of 20%.
Negative Points
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The LRPC segment recorded a 130% decline year on year.
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Despite a strong performance, net profit for the quarter was impacted by a one-time cost of INR13 crore due to the implementation of the wage code.
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The European market remains flat in terms of volume growth.
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The domestic market has been subdued, particularly in the low-value general-purpose rope segment.
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The company faces challenges in ramping up volumes in the Saudi Arabian and Thailand operations, which are still in the early stages of growth.
Q & A Highlights
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Q: When do you expect a clear and sustained recovery in volume growth, and which business segments are likely to lead this recovery? A: Volume growth is crucial, and we have seen about a 5% increase in volume growth over the past nine months. The wire segment has shown more growth, while the rope segment has room for improvement. We are ramping up capacities on the rope side and focusing on developing new customers and OEM approvals in value-added segments like elevators and cranes. These efforts should help increase volumes in the coming quarters and into the next financial year. - Respondent: Unidentified_7
Q: How is the synthetic link business scaling up, and can it become a meaningful contribution to revenues and margins in the next financial year? A: The synthetic business, particularly the Ocean fiber brand, is doing well and is now well established. We are consistently receiving orders and have developed 8 to 10 new customers. We expect this vertical to grow significantly over the next year and become a more meaningful contributor to our revenues and margins. - Respondent: Unidentified_7
Q: What is the current status of the Saudi Arabian business, and how are the Thailand operations ramping up? A: The Saudi Arabian business is gradually ramping up, with around 60 new customers added. We expect improvement in volumes from Q4 onwards. In Thailand, we have initiated modernization and cost optimization plans, which should yield better financial numbers in the next 4 to 6 quarters. - Respondent: Unidentified_3
Q: How will the free trade agreement with Europe translate into tangible benefits for Usha Martin in terms of export volumes, margins, and overall competitiveness over the next 12 to 24 months? A: The free trade agreement does not significantly impact us as our products already had zero duty in Europe. Therefore, it is business as usual for us, and we do not anticipate any major changes in export volumes or competitiveness due to this agreement. - Respondent: Unidentified_3
Q: What are the strategic initiatives that will help Usha Martin achieve the next level of growth, and which business segments and geographies will drive this growth? A: We have a diversified geographical presence, which helps us navigate geopolitical crises. Our focus will be on ramping up volumes in Saudi Arabia and maintaining our strong presence in Europe. We aim to increase volumes across all geographies and segments, with a particular focus on value-added products and new customer acquisitions. - Respondent: Unidentified_3
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
