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Usha Martin Reports Strong FY26 Profit, Approves Dividend Amid Legal Scrutiny
Usha Martin Limited has announced its audited financial results for the fiscal year ending March 31, 2026. The company reported consolidated revenue from operations of ₹3,691.06 crore and a consolidated profit after tax of ₹491.20 crore. The board has recommended a final dividend of ₹3.75 per equity share, pending shareholder approval at the Annual General Meeting.
For FY26, the company's standalone revenue from operations was ₹2,312.03 crore, with a standalone profit after tax of ₹378.02 crore. In addition to the financial results, the board appointed M/s Mani & Co. as the Cost Auditor and M/s. Deloitte Touche Tohmatsu India LLP as the Internal Auditor for the financial year 2026-27. The statutory auditors provided an unmodified opinion on the company's financial results.
This strong financial performance and the proposed dividend signal the company's health and commitment to shareholder returns. The appointment of new auditors ensures continued compliance and strengthens internal financial oversight for the upcoming fiscal year.
Usha Martin operates as a key player in India's steel and wire rope manufacturing sector. While the company has demonstrated a period of financial recovery carrying into FY26, it is also navigating significant legal challenges. Investigations by the Enforcement Directorate (ED) and Central Bureau of Investigation (CBI) are ongoing concerning land parcels in Ranchi. These proceedings relate to alleged violations of mining lease terms and involve an estimated amount of ₹190.37 crore. Furthermore, the CBI has filed a First Information Report (FIR) alleging attempts to influence an ongoing investigation.
Key risks for investors include these ongoing legal proceedings. Hearings for the ED/CBI cases concerning the Ranchi land parcels are scheduled for May 2026, as are hearings for the CBI FIR related to alleged influence peddling. The company is also monitoring the incremental impact of new Labour Codes, such as the Code on Wages, on its gratuity and leave liability, which has been recognized as an exceptional item for FY26.
The company competes in a sector with major steel producers like Tata Steel and JSW Steel. While these giants operate on a much larger scale, Usha Martin's specialization in wire ropes provides a niche. The broader Indian steel industry has benefited from a demand recovery. Looking ahead, shareholders will vote on the proposed final dividend. Key developments to track include the outcomes of the legal hearings in May 2026, the results of the CBI investigation, and the company's strategies concerning the implementation of new Labour Codes and their financial impact.