Usha Martin Limited reported a consolidated net profit of ₹107 crore for Q3, representing a 16.4% year-on-year increase from ₹92.5 crore in the corresponding quarter of the previous year. Revenue from operations grew 6.6% YoY to ₹917 crore, compared with ₹860 crore in the same period last year, supported by steady demand across core business segments. The company also announced a bonus issue of equity shares in the ratio of 4:1, meaning four shares will be given to eligible shareholders for every one share held.
Despite the profit growth, operating performance remained subdued during the quarter. EBITDA declined marginally by 0.7% YoY to ₹219 crore, compared with ₹220 crore in the year-ago quarter. EBITDA margin slipped to 23.9% from 25.6%, reflecting cost pressures during the reporting period. The company attributed this margin compression to exceptional labour code impact and cost pressures experienced during the reporting period. However, the company recorded exceptional items of about ₹133.5 crore, largely linked to the impact of new labour codes, which significantly impacted overall profitability metrics for the quarter.
The Wire & Wire Ropes segment continued to dominate performance, accounting for the bulk of revenues and profits, while the 'Others' segment remained small and loss-making. On a sequential basis, profitability was also impacted by higher expenses and lower operating leverage, indicating operational challenges during the quarter. The company's total expenses rose to ₹950 crore in Q3 from ₹880 crore in the corresponding quarter of the previous year, reflecting the impact of cost pressures across operations.
For the nine months ended December 31, 2025, consolidated revenue stood at ₹2,711.8 crore, while profit after tax rose to ₹338.3 crore, compared with ₹305.4 crore in the corresponding period last year. This represents a 9.3% increase in revenue and 11.7% growth in profitability over the nine-month period. The company's total expenses for the nine-month period increased to ₹2,700 crore from ₹2,400 crore in the corresponding period of the previous year.
Shares of Usha Martin ended 1.51% lower at ₹408.95 ahead of the Q3 results announcement on Thursday. The stock has declined 9.25% in the past one month, reflecting investor concerns about the margin pressures and exceptional charges that impacted quarterly performance. The company's performance was mixed compared to other industrial peers, with some companies like Syrma SGS reporting strong growth of 110.9% YoY in profit and Carborundum posting 118.4% YoY growth in profit, while others like SIS reported losses due to labour code implementation costs.
