How Is Usha Martin Maintaining Its 60% Market Leadership in the Steel Wire Industry?

Synopsis: Usha Martin, India’s steel wire rope leader with ~60% domestic market share, reported Q3 FY26 revenue of ₹917 crore (6.5% YoY) and PAT of ₹108 crore (17.4% YoY), leveraging diversified products, global reach, and a deleveraged balance sheet to support critical industrial sectors.

Usha Martin is a prominent player in the global steel wire rope and specialty steel segment, supplying critical products that underpin a wide range of industrial and infrastructure activities. Its manufacturing footprint, export reach, and long-standing relationships with global customers position it as a key enabler in sectors where safety, reliability, and performance are non-negotiable, making Usha Martin an integral part of multiple industrial value chains.

Usha Martin Limited, with a market capitalization of Rs. 12,890.58 crore, closed at Rs. 423 per equity share, up by 3.36 percent from its previous day’s close price of Rs. 409.25 per equity share.

Usha Martin Limited has delivered returns across multiple timeframes, with a 1-month return of -5.16 percent, a 3-month return of -8.78 percent, and a 6-month return of 12.01 percent The stock has delivered a 22.97 percent return in the past 1 year and in the longer frame of 5 years it has delivered a return of 1,319.46 percent.

Industry Overview

The global steel wire rope market was valued at US$ 8,023 million in 2025 and is expected to reach US$ 9,304 million by 2032, growing at a CAGR of 2.2 percent during 2026–2032. This steady growth underlines the non-discretionary nature of steel wire ropes, which are critical inputs for construction, mining, oil & gas extraction, cranes, elevators, and other heavy-duty industrial applications where safety and reliability are paramount.

Steel wire rope is a high-strength mechanical product made from high-carbon steel or stainless steel wires, twisted into strands around a fiber or steel core. The core provides structural stability, while the strands determine tensile strength and load-bearing capacity. Due to this construction, steel wire ropes are indispensable in industries that involve lifting, hauling, anchoring, and suspension, making them a backbone product for infrastructure and industrial development.

Globally, the steel wire rope industry remains fragmented. In 2024, first-tier manufacturers such as Kiswire, Bridon-Bekaert, and WireCo World Group together accounted for only 18.12 percent of global market share, while second-tier players include Usha Martin, Jiangsu Langshan Wire Rope, Teufelberger, and Guizhou Steel Rope Group. In contrast, the Indian market is far more consolidated, with Usha Martin holding nearly 60 percent market share, highlighting its leadership and deep penetration across domestic end-user industries.

Usha Martin Limited is a Kolkata-based manufacturer of steel wires, wire ropes, strands and related accessories, serving sectors such as mining, cranes, oil & offshore, elevators, infrastructure and engineering in India and overseas. Founded in 1960, the company also provides pre-stressing solutions, installation services, wire-drawing machines and telecom cables, and was earlier known as Usha Beltron Limited before its 2003 rebranding.

Diversified Presence Across Products, Industries, and Geographies

Usha Martin’s leadership is reinforced by its diversified product portfolio, end-industry exposure, and global reach. As per the latest data, wire rope contributes about 73 percent of overall revenues, supported by wires, LRPC strands, and other specialized products. 

From an end-industry perspective, demand is well distributed across engineering (25 percent), cranes (18 percent), oil & offshore (17 percent), construction & infrastructure (10 percent), elevators (9 percent), automotive (6 percent), mining (6 percent), utilities, fishing, and other niche applications, reducing dependence on any single sector. 

Geographically, the business is also well balanced, with India contributing 43 percent of revenues, while international markets account for 57 percent, led by Europe (25 percent), Asia Pacific (14 percent), Middle East & Africa (10 percent), and the Americas (8 percent). This diversification enhances resilience across economic cycles.

Balance Sheet Transformation

One of the most significant structural changes at Usha Martin has been its balance sheet repair. Gross debt has been reduced sharply from about Rs. 2,306 crore in 2019 to nearly Rs. 75 crore by September 2025, reflecting sustained deleveraging and disciplined capital allocation. This transformation has materially strengthened the company’s financial flexibility and reduced interest burden, supporting long-term competitiveness.

Operationally, Usha Martin continues to generate healthy cash flows. The company reported a positive operating cash flow of Rs. 422 crore and a net cash flow of Rs. 111 crore, underlining strong internal accruals and cash profitability. At the same time, the business remains working-capital intensive, with a cash conversion cycle of 205 days and working capital days of 107 days, primarily due to the nature of large industrial orders, inventory requirements, and global supply chains. While elevated, these metrics are characteristic of the steel wire rope industry and are managed through scale and operating discipline.

Financial Highlights

Revenue in Q3 FY26 came in at Rs. 917 crore, reflecting a 6.5 percent YoY growth over Rs. 861 crore in Q3 FY25 and a 1.0 percent QoQ increase from Rs. 908 crore in Q2 FY26, indicating steady topline momentum with sequential stability.

EBITDA rose to Rs. 176 crore, registering a strong 23.1 percent YoY growth compared to Rs. 143 crore and a 1.7 percent QoQ improvement over Rs. 173 crore, while profit after tax stood at Rs. 108 crore, up 17.4 percent YoY from Rs. 92 crore but marginally down 1.8 percent QoQ from Rs. 110 crore, reflecting stable operating performance with slight sequential moderation in profits.

Over the past three years, the company has demonstrated strong growth, achieving a revenue CAGR of 9 percent, a profit CAGR of 15 percent and a price CAGR of 30 percent, reflecting both its operational performance and market confidence.

A return on equity (ROE) of about 15.8 percent and a return on capital employed (ROCE) of about 18.8 percent, and debt to equity ratio at 0.09 demonstrate the company’s financial position. The stock is currently trading at a P/E of 28.4x higher as compared to industry P/E of 18.7x.

Conclusion

Usha Martin’s strong market leadership, diversified product portfolio, and balanced geographic presence position it as a critical enabler across multiple industrial sectors. Coupled with disciplined balance sheet management, healthy cash flows, and steady revenue and profit growth, the company is well-placed to sustain its operational resilience and capitalize on long-term opportunities in both domestic and international markets, while maintaining financial prudence and strategic flexibility.

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