Usha Martin (USM IN) – Q1FY27 Result Update – Superior value & ex-MENA volumes negate war impact – BUY
Published on 30 Jul 2026
Usha Martin (USM) delivered strong Q1FY27 results with 44% YoY EBITDA growth, supported by superior product mix, higher NSR, strong volume growth in India, US and Europe negating sharp 28% decline in Middle East volumes. Disciplined cost pass-through despite elevated steel, energy and freight costs aided margins to 20.1%. While the Middle East remained a drag due to geopolitical disruptions and delayed projects, healthy demand across India, Europe and the US more than offsetting the weakness. Domestic rope business remained particularly strong (12% volume growth), led by elevators and mining, while the wire business continued to deliver robust 19% volume growth. USM also achieved an important milestone with its first international Plasticated LRPC order and continued traction in OceanFibre portfolio. We upgrade our FY28/29E EBITDA estimates by 2.3%/0.8% assuming higher NSR and maintain BUY with revised TP of INR 594 (INR 585 earlier) assigning same 25x PER to Sep’28 EPS.
