Usha Martin Q2 FY27 Results Analysis: Revenue Crosses Rs. 1,000 Cr, EBITDA Jumps 16.53% (USHAMART)
Usha Martin Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 1,000.01 Cr (+12.41% YoY) and PAT growth of +17.74% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 13, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,000.01 Cr (+12.41% YoY) |
| PAT (Q2) | Rs. 129.28 Cr (+17.74% YoY) |
| EBITDA margin | 20.19% (+70 bps YoY) |
| EPS (Q2) | Rs. 4.23 (+17.50% YoY) |
Quarter Snapshot
Usha Martin delivered its first Rs.1,000 Cr continuing-revenue quarter (+12.41% YoY) with Operating EBITDA up 16.53% YoY and margin holding near 20% despite a 440 bps jump in materials intensity, demonstrating pass-through pricing power. Results fell marginally short of the guided 20% base margin on the headline basis and the ~15% value-growth pace, while the balance sheet strengthened with net cash of Rs.414.97 Cr and the UM Cables sale completed at Rs.77.00 Cr. The ED/PMLA overhang with an auditor emphasis-of-matter remains the key unresolved risk.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue/demand | "revenue momentum likely ahead" | +12.41% YoY continuing, Rs.1,000.01 Cr | Played out |
| Margins | "flat-to-compressing around the 20% base" | 19.74% headline / 20.19% continuing; −41 bps QoQ, +65 bps YoY | Played out |
| Input spike | "a pass-through/pricing problem more than an immediate physical squeeze" | CoM +23.26% YoY, margin held ~20% | Played out |
| Middle East (~9% of revenue) | continued volume depression | no KPI in filing | Not observable |
| U M Cables accounting | "watch for gain on sale…" | Rs.77.00 Cr consideration now disclosed in note 7; no gain yet | Played out |
| ED/PMLA movement | any change beyond status quo | status quo in filing | Not observable |
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Management Guidance vs Delivery
| What management said | What happened | Verdict |
|---|---|---|
| EBITDA margin — "minimum base margin of 20%, sustainable, expected to move upwards" (Q1 FY27 earnings call) | 19.74% on the management-basis denominator (20.19% on continuing revenue) — just under base on the headline basis; above it on continuing-only | Missed |
| Value growth ~15% FY27 (Q1 FY27 earnings call) | Continuing revenue +12.41% YoY | Below pace |
| Capex Rs.250–300 Cr FY27 (Q1 FY27 earnings call) | Rs.142.78 Cr in H1 (cash-flow purchases) | On Track |
| EBITDA→cash conversion >95% (management KPI, Q3 FY26 call) | 0.80× in H1 | Missed |
| U M Cables sale completion (filing note 7) | Completed 31 Oct 2026 at Rs.77.00 Cr; gain in completion period | On Track |
Key Investment Insights
Key Positives
- Continuing revenue crossed Rs.1,000 Cr for the first time at Rs.1,000.01 Cr, +12.41% YoY; H1 FY27 revenue Rs.2,021.09 Cr, +14.82% YoY
- Operating EBITDA grew +16.53% YoY to Rs.201.94 Cr with margin up ~70 bps YoY to 20.19% (continuing basis) despite materials intensity rising ~440 bps
- Total PAT grew +17.74% YoY to Rs.129.28 Cr; PAT attributable to owners +17.56% YoY to Rs.128.98 Cr
- Net cash of Rs.414.97 Cr, up Rs.82.71 Cr in H1 despite Rs.114.28 Cr dividends paid; finance costs fell 17.29% YoY to Rs.4.21 Cr
- H1 free cash flow of Rs.186.23 Cr with CFO/PAT at 1.21x; capex of Rs.142.78 Cr in H1 on track vs Rs.250-300 Cr FY27 guide
- UM Cables slump sale completed 31 Oct 2026 at Rs.77.00 Cr consideration; discontinued-ops loss narrowed to Rs.6.39 Cr from Rs.18.35 Cr YoY
- No exceptional items in Q2 FY27 or H1 FY27; reported PAT equals normalized PAT
Risk Factors
- Cost of materials consumed jumped +23.26% YoY to Rs.498.91 Cr, rising from 45.50% to 49.89% of revenue amid steel at four-year highs
- Operating EBITDA margin of 19.74% on the management-basis denominator fell short of the guided 20% base margin; margin slipped ~41 bps QoQ
- Continuing revenue growth of +12.41% YoY trails the guided ~15% FY27 value-growth pace; revenue declined 2.06% QoQ
- H1 EBITDA-to-cash conversion of 0.80x sits below management's >95% cash-conversion KPI
- ED/PMLA proceedings continue with a Rs.190.37 Cr Ranchi land attachment unchanged; auditors included an emphasis-of-matter reference
- Unallocable expenditure swung ~Rs.15.8 Cr adversely YoY (from net income Rs.6.61 Cr to net charge Rs.9.18 Cr), causing PBT growth (+6.50%) to lag segment result growth (+16.01%)
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.