Usha Martin lifts operating margin to 21.60% as costs lag revenue
Consolidated net profit rose 46.70% year on year, but other income still accounted for 13.50% of pre-tax profit.
Filed 30 Apr 2026, 13:31 IST · Usha Martin Ltd (USHAMART)
Key takeaways
- Consolidated operating margin expanded 6.02 percentage points year on year to 21.60% as revenue grew 9.28% while expenses rose 1.48%.
- Consolidated net profit rose 46.70% year on year to Rs 148.03 cr, helped by a 46.18% fall in interest costs, while other income contributed 13.50% of pre-tax profit.
- The stock fell 2.17% on results day, a larger initial move than its 1.79% median absolute reaction after the past eight results.
Price around the results
Revenue growth translated into a sharper operating gain
Usha Martin's consolidated revenue rose 9.28% year on year and 6.78% sequentially, while operating profit grew 51.56% and 20.23%, respectively. Revenue growth exceeded expense growth in both comparisons, with expenses up 1.48% year on year and 3.59% sequentially. The company said demand remained steady across key segments during the quarter.
Margin expansion continued, but profit quality needs tracking
Operating margin widened 6.02 percentage points year on year and 2.41 percentage points sequentially as costs grew more slowly than revenue. Lower interest costs also supported pre-tax profit, falling 46.18% year on year and 26.21% sequentially. Other income made up 13.50% of pre-tax profit, so reported earnings included a meaningful non-operating contribution; the tax rate was broadly unchanged year on year but rose 2.26 percentage points sequentially.
The 21.60% margin is the highest in a four-quarter upward run
Operating margin has risen in every quarter from Q4FY25's 15.58% to 16.30%, 19.06%, 19.19% and now 21.60%, making this the fourth consecutive quarterly increase. Usha Martin's margin was 5.94 percentage points above the 15.66% median for the 71 Industrials peers that had reported the same quarter. Year-on-year comparison is particularly informative here because it shows the improvement from the 15.58% margin recorded in Q4FY25.
Management points to long-term growth while the stock initially slipped
Management said it believes Usha Martin is positioned for sustainable and profitable long-term growth. The shares fell 2.17% on the results day, compared with a 1.79% median absolute move after the past eight results, before recovering to a 2.39% gain by the fifth trading day. The initial decline was therefore somewhat larger than the stock's usual post-results move, even though the subsequent direction was positive.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹979 cr | ₹917 cr | +6.78% | +9.28% |
| Other income | ₹28 cr | ₹-5 cr | — | -0.90% |
| Expenses | ₹768 cr | ₹741 cr | +3.59% | +1.48% |
| Operating profit | ₹212 cr | ₹176 cr | +20.23% | +51.56% |
| Operating margin (%) | 21.60% | 19.19% | — | — |
| Interest | ₹4 cr | ₹5 cr | -26.21% | -46.18% |
| Depreciation | ₹31 cr | ₹29 cr | +8.43% | +12.54% |
| Profit before tax | ₹204 cr | ₹138 cr | +48.35% | +53.52% |
| Tax | ₹49 cr | ₹30 cr | +63.68% | +52.90% |
| Net profit | ₹148 cr | ₹108 cr | +37.48% | +46.70% |
| EPS (₹) | ₹4.85 | ₹3.53 | +37.39% | +46.08% |
Operating margin of 21.60% compares with a Industrials sector median of 15.66% across 71 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.17% | -1.42% |
| Next session | +0.44% | — |
| 5 sessions | +2.39% | +2.40% |
| 15 sessions | +0.84% | — |
| 30 sessions | +7.18% | — |
Volume on the results session was 5.02× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company reported steady demand across key segments in the quarter.
Guidance & outlook
- The company believes it is positioned to deliver sustainable and profitable long-term growth.
What to watch
- Whether operating margin holds above 21.60% after four consecutive quarterly increases.
- Whether revenue growth continues to exceed expense growth, following the year-on-year gap of 9.28% versus 1.48%.
- Whether other income's contribution to pre-tax profit falls from 13.50%.