Usha Martin Ltd Management Discussions

GLOBAL ECONOMY

The global economy grew by around 3.4% in 2025, supported by improved consumption and gradual easing of monetary policies by major central banks, including the US Federal Reserve and the European Central Bank, which helped improve financial conditions. 1

Growth trends remained uneven across regions. While the US witnessed some moderation due to softer labour market conditions and lower discretionary spending, Europe showed signs of recovery supported by domestic demand. Emerging Market and Developing Economies grew by 4.4%, while India continued to demonstrate strong growth momentum driven by robust consumption and sustained infrastructure investments. 1 However, the global environment continued to face challenges from geopolitical tensions, including ongoing conflicts in West Asia and disruptions in key trade routes such as the Strait of Hormuz, along with evolving trade dynamics and tariff-related uncertainties. These factors impacted global supply chains, commodity prices and overall trade flows.

Overall, while macroeconomic conditions have improved, geopolitical risks and trade uncertainties continue to influence global economic stability.

GLOBAL OUTLOOK

Global growth is expected to moderate to around 3.1% in 2026-27. Easing monetary conditions and continued investment in infrastructure and the energy transition may provide some support to economic activity. However, geopolitical tensions, including ongoing conflicts in

West Asia, continue to pose risks to global trade and economic stability.

Inflation is expected to remain elevated in the near term before gradually easing. Emerging and developing economies may face greater pressure from slower growth, higher prices and tighter financial conditions. 1

INDUSTRY OVERVIEW

India s economy remained strong in FY 2025-26, with GDP growth estimated at around 7.6%, supported by steady consumer spending, rising investments and a stable macroeconomic environment. Household consumption continued to be the key growth driver, while increased government spending on infrastructure and capital

1 World Economic Outlook, April 2026 2 Economic Times projects added further momentum. Inflation moderated during the year, enabling supportive monetary conditions and improved liquidity. 1 Infrastructure development continues to be central to

India s growth, with initiatives such as Viksit Bharat@2047 and sustained investments in roads, ports, airports, urban infrastructure and renewable energy. These developments are driving demand for steel wires, wire ropes and LRPC strands across infrastructure, construction, mining and industrial sectors.

Urbanisation, particularly in Tier 2 and Tier 3 cities, along with expansion in housing, metro rail, high speed rail and airport projects, is supporting demand in the construction and elevator segments. Mining activity is also gaining momentum due to policy support and increased domestic production, leading to higher demand for specialised mining solutions. In addition, growth in the oil and gas sector and continued development of the maritime sector through initiatives such as Sagarmala and Maritime India Vision are further contributing to demand across offshore, port and logistics applications.

Looking ahead, India remains well positioned for sustained growth, with GDP projected to grow by around 6.6% in FY 2026-27. Continued infrastructure development, urbanisation and improving domestic demand are expected to support economic momentum. The domestic steel sector is also poised for expansion, supported by capacity additions and ongoing investments, which will further strengthen demand for wire rope products. 2 Overall, rising infrastructure and industrial activity are expected to drive steady growth in the wire rope industry. As a key domestic and global supplier, Usha Martin is aligned with Indias growth momentum, offering application-specific solutions that meet global standards and certifications. Our world-class manufacturing facilities help us deliver a wide range of standard and customised solutions to meet the growing needs of the industry.

BUSINESS OVERVIEW

During the year, the Company strengthened its presence in key wire rope segments such as mining, oil and gas, infrastructure and industrial use. This was supported by steady demand from Indias growing infrastructure and urbanisation, including Tier 2 and Tier 3 cities. The Company also worked on improving its supply chain and operations to respond faster and reduce costs.

Globally, the Company streamlined its operations and gradually shifted more production to India to take advantage of cost efficiency and local capabilities. Its international network continues to help with distribution and customer engagement.

Financial performance improved during the year, driven by higher revenues, cost savings and disciplined capital management. Strong cash flows and internal resources supported ongoing investments while keeping the balance sheet healthy.

The Company also invested in digitalisation and technology, including the rollout of SAP Rise S/4HANA and customer relationship management systems. These steps improved process control, efficiency and customer engagement.

With a wide product range, strong manufacturing base and focus on customised solutions, the Company is well placed to meet both domestic and global demand and continue its growth in the coming years.

PERFORMANCE REVIEW

On a standalone basis, during FY 2025-26, the Company achieved gross production of Wire Ropes and Conveyor

Cord of 78,089 MT as against 79,996 MT in FY 2024-25.

The gross production of Strand, Wire and LRPC was

97,971 MT in FY 2025-26 as against 90,934 MT in FY 2024-25. Production of total value-added products witnessed a growth of 3.00% over the previous year.

PRODUCTION VOLUME VIA PRODUCTS -

STANDALONE

(Qty in MT)

Products	FY 2025-26	FY 2024-25
Wire Ropes	74,629	76,126
Wire/Strands/LRPC	97,971	90,934
Conveyor Cord	3,460	3,870

During the year, consolidated turnover of the Company stood at Rs. 3,691.06 crore in FY 2025-26, reflecting a change of 6.24% over Rs. 3,474.16 crore in FY 2024-25. On a standalone basis, the Companys turnover was

Rs. 2,312.03 crore in FY 2025-26 as against Rs. 2,171.06 crore in FY 2024-25.

The EBITDA achieved by the Company on a consolidated basis was Rs. 751.09 crore in FY 2025-26, being 20.35% of the reported turnover and Rs. 558.41 crore on a standalone basis, being 24.15% of the turnover, as compared to Rs. 636.45 crore and Rs. 463.29 crore respectively in FY 2024-25.

INTERNATIONAL BUSINESS

Usha Martin International Limited (UMIL)

UMIL, a wholly owned subsidiary based in the United Kingdom, oversees Usha Martins European operations. It operates through the following subsidiaries/step-down subsidiaries and maintains a production facility in

Nottinghamshire, UK:

• Usha Martin UK Limited

- European Management & Marine Corporation Limited

- Brunton Shaw UK Limited

• De Ruiter Staalkabel B.V.

• Usha Martin Italia S.R.L.

• Usha Martin Europe B.V.

• Usha Martin Espana, S.L.

(Ceased to be a subsidiary w.e.f. 19 th December, 2025)

UMIL - Consolidated Performance

(GBP in Mn)

Particulars	FY 2023-24	FY 2024-25	FY 2025-26
Turnover	77.0	81.7	75.5
PAT (incl. OCI)	4.9	0.3	4.5

Brunton Wire Ropes FZCo (BWRF)

BWRF is a wholly owned subsidiary based in United Arab

Emirates, with 75% of its paid-up capital held directly by the Company and the remaining 25% held by Usha Martin

Americas Inc., another wholly owned subsidiary. The production facility is strategically located in the Jebel Ali Free Zone, Dubai.

Brunton Wire Ropes Industrial Company Limited, Saudi Arabia, is a subsidiary of BWRF and serves the Middle East market with a specialised focus on wire ropes, slings and related products.

BWRF - Consolidated Performance

(USD in Mn)

Particulars	FY 2023-24	FY 2024-25	FY 2025-26
Turnover	35.3	37.9	38.0
PAT (including OCI)	3.8	4.3	4.4

Usha Martin Singapore Pte Limited (UMSPL)

UMSPL located in Singapore is a wholly owned subsidiary of the Company. UMSPL operates as a warehousing and distribution hub for wire ropes in Asia and manages the following step-down subsidiaries:

• Usha Martin Australia Pty Limited

• Usha Martin Vietnam Company Ltd.

• PT Usha Martin Indonesia

UMSPL - Consolidated Performance

(USD in Mn)

Particulars	FY 2023-24	FY 2024-25	FY 2025-26
Turnover	34.6	37.9	39.4
PAT (incl. OCI)	1.7	2.1	0.7

Usha Siam Steel Industries Public Limited (USSIL)

USSIL is a subsidiary of the Company situated in Thailand in which the Company along with Usha Martin Singapore Pte Limited and Usha Martin Americas Inc. holds the entire equity of USSIL. Further, Usha Siam Specialty Wire Company Limited (USSWCL) is a step-down wholly owned subsidiary wherein USSIL holds 99.99% shareholding and the balance 0.01% is held by Usha Martin Singapore Pte

Limited. The production facilities of USSIL and USSWCL are situated in Bangkok, Thailand.

USSIL - Consolidated Performance

(THB in Mn)

Particulars	FY 2023-24	FY 2024-25	FY 2025-26
Turnover	1,523.7	1,531.3	1,514.9
PAT (incl. OCI)	34.8	35.3	(13.7)

Usha Martin Americas Inc (UMAI)

UMAI is a wholly owned subsidiary of the Company situated at Houston, United States of America.

UMAI - Consolidated Performance

(USD in Mn)

Particulars	FY 2023-24	FY 2024-25	FY 2025-26
Turnover	21.2	23.6	29.0
PAT (incl. OCI)	2.1	2.3	2.4

DOMESTIC BUSINESS

U M Cables Limited (UMCL)

UMCL is a wholly owned subsidiary of the Company, engaged in the manufacture of telecom cables, with its production facility located at Silvassa, India.

UMCL - Performance

(Rs. in Crore)

Particulars	FY 2023-24	FY 2024-25	FY 2025-26
Turnover	135.3	99.9	78.19
PAT (incl. OCI)	7.3	0.8	(2.9)

In addition to the entities mentioned above, the Company has two domestic subsidiaries and two joint ventures in India.

Key Financial Ratios

The key financial ratios of the Company for the financial year under review as compared to the previous financial year are provided herein under:

Particulars	FY 2025-26	FY 2024-25	Change%
Debtors Turnover	42	46	-8%
(days)
Inventory Turnover	93	100	-7%
(days)
Interest Coverage	106.6	36.6	191%
Ratio #
Current Ratio	3.3	2.8	18%
Debt Equity Ratio*	0	0.1	-100%
Operating Profit	21.7	19.2	13.02%
Margin - EBIT (%) $
Net Profit Margin (%) $	16.40	13.9	18%
Return on Net Worth	22.8	21.2	8%
(%)

The Interest Coverage Ratio improved substantially during the year, primarily due to higher earnings before interest and tax, supported by improved operating performance, coupled with a significant reduction in finance costs consequent to repayment of outstanding borrowings.

*The Debt-Equity Ratio reduced to nil on account of repayment of outstanding borrowings during the year, resulting in the standalone operations of the Company becoming debt-free as at 31 st March 2026. The reduction in borrowings is also reflected in the decline in finance costs during the year. $ Continuing business and after exceptional item

OPPORTUNITIES, THREATS, RISKS AND

CONCERNS

Opportunities

• I nfrastructure-led growth: Continued focus of the Government of India on infrastructure development through initiatives such as Bharatmala, Sagarmala, Smart Cities Mission and urban housing programmes is expected to drive sustained demand for wire ropes across construction, ports, mining and transportation sectors.

• Urbanisation and real estate expansion: Growing urbanisation, particularly in Tier 2 and Tier 3 cities, along with increased development of housing, metro rail and commercial infrastructure, is supporting demand for elevator ropes and related applications.

• Manufacturing and industrial growth: Strengthening domestic manufacturing capabilities and policy support for industrial growth are enhancing demand for steel wires and specialised wire rope solutions across sectors.

• Offshore and energy opportunities: Increasing investments in offshore oil and gas and renewable energy, including offshore wind, are creating opportunities for specialised and high-performance products such as corrosion-resistant ropes and synthetic slings.

• Product innovation and value-added offerings: Continued focus on specialised products, including synthetic slings, coated wires and application-specific solutions, is expanding addressable markets and supporting margin improvement.

• Digitalisation and operational efficiency:Adoption of digital technologies, automation and analytics is improving operational efficiency, cost optimisation and decision-making capabilities across the business.

• Global supply chain realignment: Evolving global trade dynamics are positioning India as a competitive manufacturing hub, providing opportunities to strengthen exports and expand presence in international markets.

Threats, Risks and Concerns

• G eopolitical uncertainties: Ongoing global conflicts, particularly in West Asia and disruptions in key trade routes such as the Strait of Hormuz may impact supply chains, logistics costs and availability of raw materials.

• Trade and tariff risks: Changes in global trade policies, including tariff measures and protectionist trends, may affect export competitiveness and market access in key geographies.

• Price competition: Competition from low-cost manufacturers, especially from East Asian countries, continues to exert pressure on pricing and margins in certain product segments.

• Regulatory and compliance requirements:

Increasing environmental and safety regulations across markets may lead to higher compliance costs and operational complexities.

OUTLOOK

As the Company moves into the next financial year, it will continue to focus on improving its performance by expanding capacity, better utilising its assets and strengthening its product mix. The expansion at the Ranchi facility is expected to support growing demand across key sectors such as infrastructure, mining, offshore and industrial applications.

The Company is aligning its plans with changing demand trends in both domestic and global markets. In India, continued infrastructure development and urbanisation are expected to support steady demand. These trends are driving demand across various products, including steel wires and wire ropes, with notable growth in segments such as elevator ropes in Tier 2 and Tier 3 cities. At the same time, international markets, particularly in Europe and the United States, are expected to provide further growth opportunities.

The Company is improving operational efficiency by optimising its manufacturing network and gradually increasing production in India. Continued focus on cost control, supply chain efficiency and timely execution is expected to support further improvement in performance. At the same time, the Company is strengthening its portfolio through customised and value-added products, with greater emphasis on higher-margin segments with lower competitive intensity. This balanced approach, supported by efficient asset utilisation and prudent financial management, positions the Company well to navigate changing market conditions and sustain growth.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has a robust internal control system commensurate with the size, scale and complexity of its operations. These controls are designed to ensure orderly and efficient conduct of business, safeguard assets, prevent and detect fraud and errors and ensure accuracy and reliability of financial reporting.

The control framework is supported by well-documented policies, clearly defined roles and responsibilities and established approval processes. These controls are embedded within the SAP S/4HANA system, enabling better data management, transparency and process efficiency across functions.

The Company has appointed an independent firm with international credentials as its Internal Auditor to conduct risk-based audits across operations. The Internal

Auditor reports key findings to the management and the

Audit Committee.

The Audit Committee reviews the audit observations, evaluates the effectiveness of internal control systems and monitors the implementation of corrective actions. Based on such reviews, the internal control systems are considered adequate and operating effectively.

MATERIAL DEVELOPMENT IN HUMAN RESOURCES AND INDUSTRIAL RELATIONS

As the Company continues its transformation journey, its people remain central to its growth and long-term success. The focus is on building a future-ready workforce aligned with the Companys values, with emphasis on responsibility, fairness and an inclusive work environment.

The Company encourages teamwork and active participation in improvement initiatives, helping build a motivated and performance-driven culture. Learning and development remain important, supported by on-the-job training, classroom sessions and digital learning programmes. Training needs are identified through performance reviews and development plans to ensure they meet business requirements. The Usha Martin Learning Academy at Ranchi continues to strengthen technical skills through practical, hands-on training.

During the year, the Company strengthened employee engagement through town halls, feedback mechanisms and better internal communication. The introduction of a Learning Management System has made training more accessible and effective. The Company also continues to focus on improving diversity and creating a work environment that supports career growth and work-life balance.

Open communication channels between employees and management help in resolving concerns quickly and improving processes. Industrial relations remained stable during the year, supported by constructive engagement and implementation of long-term wage agreements with recognised unions.

The Company also remains committed to supporting communities around its operations through initiatives in education, skill development and healthcare, contributing to inclusive and sustainable growth.

The total number of employees as of the reporting date is provided in the BRSR section of this Annual Report.

APPRECIATION

The Company has been getting necessary support and cooperation from all stakeholders, including customers, suppliers, value chain partners, investors, authorities, lenders and employees of the Company to whom the Company expresses its sense of appreciation.

Cautionary Statement

Statements in the management discussion and analysis report describing the Company s objectives, projections, estimates may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to Company s operations include, among others, economic conditions affecting demand/supply and price conditions in the domestic and overseas market in which the Company operates, changes in the government regulations, tax law and other statutes and incidental factors.