1. At a Glance
Imagine a wire rope so strong it can lift an offshore rig… but still not strong enough to pull promoters’ holding up. Welcome toUsha Martin Ltd, India’s wire rope legend that’s trying to tie together growth, governance, and global expansion — all while dodging CBI and ED ropes.
As ofNovember 7, 2025, the company’smarket cap stands at ₹14,398 crore, with the stock swinging around₹472 per share, up38.8% in 3 monthsand52% in 6 months— making it the kind of rope even traders want to hang on to.Q2FY26 numbers:Revenue at ₹907.6 crore, EBITDA ₹173 crore, and PAT ₹127.6 crore.ROCE:18.8%.ROE:15.8%.Debt:A mere ₹264 crore (basically pocket change compared to their steel past).
The once debt-laden steel wire maker has now gone on a financial detox, flexing its net cash position of ₹111 crore — not bad for a company that was in the ICU just a few years back. But before you clap, remember: there’s a ₹190 crore ED attachment and CBI investigation hanging in the background like a forgotten ceiling fan.
2. Introduction – How to Make a Rope Empire Without Hanging Yourself
Once upon a time in Ranchi, a company decided that “steel” could be sexier if you turned it into a rope.Usha Martin Ltd, born with an industrial screwdriver in its hand, started making wires, strands, and ropes for everyone from construction sites to oil rigs.
Fast-forward to today, and this company has turned into a global rope-wrangler. Withpresence in 70+ countries, facilities inIndia, Thailand, Dubai, and the UK, and a2,98,540 TPA capacity, Usha Martin has literally wired the world.
But this ropewalker’s act isn’t easy. After selling its steel division to Tata Sponge in 2019, Usha Martin reinvented itself as a value-added wire and rope manufacturer. It’s like going from making nails to making the strings that hold up skyscrapers.
Q2FY26 showed some solid balancing skills:EBITDA margin at 19%,PAT margin around 14%, and a steadyYoY growth of 16% in profitsdespite global slowdowns. The company’s domestic rope business (pun intended) grew thanks to cranes, oil rigs, and elevators — basically, every sector that lifts heavy things.
The twist in the tale? Even as profits rise, the promoter holding keeps slipping — from48.3% in Dec 2022to41.8% in Sep 2025. Are the promoters slowly letting go of the rope? Maybe. But for now, the company seems firmly tied to performance.
3. Business Model – WTF Do They Even Do?
Okay, so what does Usha Martin actually do — besides manufacturing enough wire rope to circle the Earth several times?
They’re in the business ofsteel wires, wire ropes, strands, and cords, and they don’t just sell these by the kilo — they sell them by reputation. Usha Martin’s ropes are used incranes, elevators, mines, oil rigs, bridges, construction sites, and even suspension cables. In short, if something heavy moves, there’s probably an Usha rope behind it.
Their product lineup looks like a buffet of metal:
- Wire Rope (73% of revenue)– The showstopper. Used in cranes, mining, elevators, and oil rigs.
- LRPC (10%)– Low relaxation prestressed concrete steel strands used in bridges.
- Wire & Strand (9%)– The regular wires — small but sturdy contributors.
- Others (8%)– Accessories, machines, and custom end fittings that make engineers drool.
By geography,India contributes 45%,Europe 25%, andAsia-Pacific 13%,
while the rest comes from the Middle East and Americas. The company has been expanding into newer regions likeSaudi Arabia and Latin America, because apparently, even ropes need passports now.
Their value-added products now contribute71% of revenue, up from 65% in FY23 — showing the company’s clever shift from bulk steel to branded “rope tech.”
4. Financials Overview – The Rope Gets Tighter
| Metric | Q2FY26 (₹ Cr) | Q2FY25 (₹ Cr) | Q1FY26 (₹ Cr) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 907.6 | 861 | 887 | 5.4% | 2.3% |
| EBITDA | 173 | 143 | 145 | 21.0% | 19.3% |
| PAT | 127.6 | 109 | 101 | 17.1% | 26.3% |
| EPS (₹) | 3.6 | 3.04 | 3.31 | 18.4% | 8.8% |
Annualised EPS = ₹3.6 × 4 =₹14.4At ₹472, theP/E = 32.8×, which means the market’s treating this rope-maker like a tech stock.
Commentary:Margins are tighter than a crane’s cable —EBITDA margin steady near 19%. PAT growth is strong, thanks to operational efficiency and lower finance costs. For a business once strangled by debt, this turnaround feels like financial yoga.
5. Valuation Discussion – The Rope Trick of Fair Value
Let’s crunch the numbers (educationally, of course).
(a) P/E Method:Annualised EPS = ₹14.4Industry P/E = 22.8Usha Martin P/E = 34.1
Fair Value Range (based on industry multiple):= ₹14.4 × (22 to 28)= ₹317 – ₹403 per share
(b) EV/EBITDA Method:EV = ₹14,369 CrEBITDA (FY25) = ₹600 CrEV/EBITDA = 23.9×
Peer median EV/EBITDA ≈ 15–18×Fair Value Range = ₹14,369 × (15 / 23.9) to ₹14,369 × (18 / 23.9)= ₹9,022 – ₹10,785 CrPer share = ₹295 – ₹355
(c) DCF (Simplified):Assuming 10% CAGR FCF growth for 5 years, 11% WACC → intrinsic range ₹380–₹430
📌Fair Value Range (Educational): ₹320 – ₹430 per share(This fair value range is for educational purposes only and is not investment advice.)
6. What’s Cooking – News, Triggers & Drama
There’s more drama here than in a family WhatsApp group.
- ED & CBI investigations:Old ghosts from FY06–FY10 about iron ore fines sales. Assets worth₹190 crore provisionally attached, but status quo order tillNov 2024.
- Tax Penalties Galore:Between Feb–Mar 2025, Usha
