Usha Martin’s margin slips sequentially despite 16.44% revenue growth
Costs grew faster than revenue in Q1FY27, but the company remained above the Industrials peer margin median and expanded margins year on year.
Filed 27 Jul 2026, 17:06 IST · after market close · Usha Martin Ltd (USHAMART)
Key takeaways
- Consolidated revenue grew +16.44% year on year, while operating margin expanded 3.84 percentage points.
- Sequentially, expenses rose +7.46% against revenue growth of +5.49%, narrowing operating margin by 1.46 percentage points.
- Usha Martin’s 20.14% operating margin was 5.05 percentage points above the 15.09% median for 16 Industrials peers.
Price around the results
Revenue growth held up, but quarterly momentum lost operating leverage
These consolidated results show revenue growth of +16.44% year on year, ahead of expense growth of +11.10%, which lifted operating margin by 3.84 percentage points. Operating profit consequently grew +43.84% year on year, while lower interest costs of -37.60% also supported pre-tax profit. On a sequential basis, revenue rose +5.49%, but operating profit fell -1.66% as expenses increased faster.
Input and freight costs pressured the sequential margin
Expenses grew +7.46% sequentially against revenue growth of +5.49%, resulting in a 1.46 percentage-point margin decline. Management said higher input and freight costs affected the quarter. The sequential tax-rate decline of 1.25 percentage points partly cushioned profit, while other income contributed 7.35% of pre-tax profit and was not the main earnings driver.
Q1 margin reversed part of a four-quarter expansion
Operating margin had risen from 15.58% in Q4FY25 to 21.60% in Q4FY26 across the intervening quarters, before easing to 20.14% in Q1FY27. The current margin still stood 5.05 percentage points above the 15.09% median among 16 Industrials companies that had reported the quarter. This makes the sequential decline a reversal from the recent upward direction, rather than a break below the company’s recent margin range.
Management points to specialised capacity and regional volume issues
Management said overall sales volumes remained steady year on year, while Middle East volumes declined because of the ongoing geopolitical conflict. The company said demand in its key markets remained healthy and that it was confident of delivering consistent, profitable growth. Management also said ongoing investment was focused on expanding specialised wire-rope capacity and improving manufacturing efficiency.
No immediate market reaction after the post-close filing
The results were filed after market close, so there is no post-results share-price reaction to assess yet. Across the last eight result reactions, the stock rose three times and fell five times, with a median absolute move of 1.79%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,033 cr | ₹979 cr | +5.49% | +16.44% |
| Other income | ₹14 cr | ₹28 cr | -50.98% | -32.21% |
| Expenses | ₹825 cr | ₹768 cr | +7.46% | +11.10% |
| Operating profit | ₹208 cr | ₹212 cr | -1.66% | +43.84% |
| Operating margin (%) | 20.14% | 21.60% | — | — |
| Interest | ₹4 cr | ₹4 cr | +10.80% | -37.60% |
| Depreciation | ₹34 cr | ₹31 cr | +7.30% | +16.84% |
| Profit before tax | ₹184 cr | ₹204 cr | -9.91% | +42.04% |
| Tax | ₹42 cr | ₹49 cr | -14.56% | +46.01% |
| Net profit | ₹142 cr | ₹148 cr | -4.05% | +40.90% |
| EPS (₹) | ₹4.66 | ₹4.85 | -3.92% | +40.79% |
Operating margin of 20.14% compares with a Industrials sector median of 15.09% across 16 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Overall sales volumes remained steady year on year in Q1 FY27.
Guidance & outlook
- The company says demand in its key markets remains healthy and it is confident of delivering consistent, profitable growth.
Expansion
- Ongoing investments are focused on expanding specialised wire-rope capacity and improving manufacturing efficiency.
Problems & risks
- Higher input and freight costs affected the quarter's performance.
- Middle East volumes declined because of the ongoing geopolitical conflict.
What to watch
- Whether operating margin holds above 20.14% after the 1.46 percentage-point sequential decline.
- Whether expenses grow slower than revenue after rising +7.46% sequentially against revenue growth of +5.49%.
- Whether other income remains a limited contributor after accounting for 7.35% of pre-tax profit.