🚨 **Usha Martin: High-Margin Wire Rope Story**

Usha Martin delivered a strong FY26, with the business continuing its transition toward **high-value, specialised wire ropes** and stronger balance-sheet discipline. 📊 **FY26 HIGHLIGHTS**

• Revenue: **₹3,691 Cr | +6.2% YoY** • Operating EBITDA: **₹705 Cr | +18.1% YoY** • EBITDA Margin: **19.1%** • ROCE: **20.6%** • Operating Cash Flow: **₹736 Cr** • Standalone business: **100% debt-free** • Consolidated Net Cash: **₹332 Cr** 🔥 **THE BIG SHIFT** Over the last 5 years, wire ropes increased from **61% → 73%** of revenue, while value-added products increased from **59% → 70%**. This is important because Usha Martin is increasingly focusing on technically demanding applications across: → Elevators → Cranes & infrastructure → Mining → Oil & gas → Offshore wind → Specialised industrial lifting 🌍 India’s infrastructure expansion, offshore energy projects and global supply-chain realignment could provide a long runway for specialised rope demand. 🏭 **CAPEX & EXECUTION** The company has expanded capacity by around **40,000 MT** over the last three years and successfully shifted high-end OceanMax rope production from the UK to Ranchi. Going forward, management plans to invest around **₹200–250 Cr annually** in technical segments. ⚠️ **BUT THERE’S A MAJOR RISK** The biggest concern is not the operating business — it is the **legal and governance overhang**. ED proceedings involve provisional attachment of Ranchi land parcels valued at around **₹190 Cr**, alongside a CBI investigation concerning historical matters. The auditors issued a clean opinion, but this legal issue remains a significant monitorable. Other points to watch: • Contingent liabilities of around **₹231 Cr consolidated** • Rising slow-moving inventory provisions !HFCL **Neha Gupta** *SEBI Registered Research Analyst* *For educational purposes only. Not investment advice. Investors should conduct their own research.*