Usha Martin Ltd (NSE: USHAMART) Q4 2025 Earnings Call dated May. 13, 2025
Corporate Participants:
Unidentified Speaker
Anoop Poojari — CDR India
Mr. Rajeev Jhawar — Managing Director
Mr. Abhijit Paul — Chief Financial Officer
Shreya Jhawar — The Company’s Strategy and Growth team
Analysts:
Unidentified Participant
Rajesh Majumdar — Analyst
Aman Kumar Sonthalia — Analyst
Krupanshu Shah — Analyst
Shraddha Kapadia — Analyst
Dhaval Shah — Analyst
Sagar Dhawan — Analyst
Prolin Nandu — Analyst
Aryan Sharma — Analyst
Pritesh Chheta — Analyst
Jatin — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the USHA Martin Ltd Earnings Conference call. As a reminder, all participant lines will remain in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing Star then zero on your touchstone telephone. Please note that this conference is being recorded. I now hand the conference over to Mr. Anup Pujari of CDR India. Please go ahead.
Anoop Poojari — CDR India
Thank you. Good afternoon everyone and thank you for joining us on Usha Martin’s Q4NFY25 earnings conference call. We have with us Mr. Rajiv Jawar, Managing Director of the company, Mr. Abhijit Paul, Chief Financial Officer and Ms. Shreya Jawar from the Strategy and Growth theme of the company. We trust you have reviewed the earnings document shared earlier. To begin, we will initiate the call with opening remarks from the management following the open for a question and answer session. Before we start, I would like to point out that some statements made in today’s call may be forward looking in nature and a disclaimer has been included in the earnings presentation shared with you earlier.
I would now like to invite Mr. Rajiv Jawar to make his opening remarks.
Mr. Rajeev Jhawar — Managing Director
Good afternoon everyone. On behalf of the management team of Usha Martin, I would like to welcome you all to our earnings conference call. I will begin by sharing some updates on operations and strategies following which our CFO Mr. Abajit Paul will run you through the key financial highlights. We are pleased to share that FY25 ended on a steady note with revenue reaching Rs. 3,474 crore, a growth of 7 year on year driven by 9.5% increase in volumes. Across our core segments, the wire rope division performed well recording a 9.3% year on year revenue growth while the wire segment registered a robust 19.7% increase over the same period.
Within the wire rope segment, the value added products accounted for 71% of revenue in FY25 with encouraging contributions from the oil and offshore and the elevator sectors. International markets contributed 55% to total revenues during the year. In Q4FY25, EBITDA margins were at 15.6% primarily due to a higher share of LRPC sales during the year during the quarter. As part of our measures to optimize the business model in our international locations, we have taken a provision of one time redundancy cost of rupees four crores during the quarter. Excluding this one time cost, the EBITDA margin stands at 16%.
Looking ahead, we remain focused on cost control, operating discipline and enhancing the share of value added offerings to support margin expansion. As shared previously, one Usha Martin is our company wide transformation program aimed at operating as a unified enterprise moving away from regional silos. This strategic shift is yielding gains in cost optimization. It will also help us become more competitive and strengthen our position to gain further market share. The initiative is now firmly embedded in our culture and way of working. I would like to share a few key developments under the one Usha Martin approach.
Number one As a part of this initiative, the restructuring at our Bruntonshaw UK business is progressing very well. Under the new model, Brunton Shaw will operate as a specialized hub focused exclusively on manufacturing critical large diameter ropes for the oil and offshore sectors. For other key value added sectors such as fishing, elevator, crane and mining, we have commenced direct exports from India to the European customers enabling improved service levels and enhanced cost efficiency. The full transition is on track and set to be completed by September of 2025. This integration of Ranchi and Brenton Shaw has also played a significant role in reducing inventory requirements at bsug, thereby contributing to better working capital management.
In parallel, we are implementing best practices in procurement, logistics and back end operations across regions with a focus on driving leaner and more efficient administrative structures. We anticipate that benefits of these enhancements will start delivering measurable value from the second half of the year FY25 26 we are also making significant progress in our digitalization efforts during the year the implementation of SAP S4 HANA was successfully completed for our operations in Singapore, Australia, Vietnam, Indonesia, the United States and Thailand. With the upgradation of our European entities currently in progress, moving everyone on a single unified digital platform is a key enabler of the one Usha Martin vision, facilitating stronger process controls and ensuring the successful integration of our back office operations.
With these initiatives underway, we are starting to see early results across key metrics and expected further improvements as the programs mature. We have begun to see improvement in working capital efficiency because of this integrated approach. Working capital days improved from 209 in September of 2024 to 199 days in March 2025, reversing the earlier trend. Additionally, we generated 141 crores of operating cash flows from international operations in H2 of FY25, helping strengthen our balance sheet. As a result, Even after undertaking Rs 245 crores of capex during the year, we brought down the consolidated net debt to Rs 63 crores while our standalone India operations turned into net cash positive.
With these improvements in place, we are confident of sustaining this trajectory and maintaining tighter control over working capital in the quarters ahead. Looking forward, our strategic focus for the upcoming year will center around the following priorities. Number one. Continue to pursue value led volume growth through completing the capacity expansion at our Ranchi plant. We expect volume ramp ups in the value added wire rope segment to support our margin expansion in the quarters ahead. 2. Focus on value added services for customers through our dedicated rigging shops in Europe, Middle East, Southeast Asia, thereby also improving customer stickiness and margins.
3. In the domestic market, the continued growth in infrastructure activity, port expansion and advancement of tier 2 and tier 3 cities is expected to drive demand for our products particularly in segments such as elevator and crane ropes. We are working closely with our Channel Partners network to grow our market share in India. Number four, we will continue to focus on our galstar product line which offers aluminium zinc coated wires for rockfall barrier protection. This initiative is part of our broader strategy to pursue high value products even within the wire segment both in the domestic and the international markets.
Our commercial production of ocean fiber has begun making our entry into the synthetics link space for offshore lifting. Though at a nascent stage at the moment, the venture reflects our long term commitment to product innovation and global relevance. To conclude, we remain committed to long term value creation through consistent investments in value added segments, product diversification and operational resilience. While there are uncertainties globally and ongoing geopolitical tensions, our disciplined approach to execution and financial prudence will continue to support sustained performance in the quarters ahead. With this, I would now like to invite our CFO Mr.
Abhijit Paul to present you the financial highlights for the quarter ended 31st March 25th. Thank you. And over to you, Abhijit.
Mr. Abhijit Paul — Chief Financial Officer
Thank you and a very good afternoon to everyone. I will now provide a brief overview of the company’s operating and financial performance for the quarter and year ended 31st March 25. In Q4 of FY25, our consolidated net revenue from operations stood at rupees 896 crore reflecting a year on year growth of 8% over rupees 829 crore in Q4 of FY24. This revenue growth was led by strong performance of our wire and strand segment which grew by 36.5% year on year and LRPC segment which saw 18% year on year increase. The core wire roof segment remained at same level on a yoy basis and is expected to gain momentum in FY26 supported by a recovery in demand and the ongoing One Usha Martin initiative.
These efforts are aimed at enhancing our competitiveness in international markets which in turn will drive growth and margin improvement. Operating EBITDA for the quarter stood at rupees 140 crores compared to rupees 152 crores in the corresponding period last year. Excluding one time redundancy provision, EBITDA margin stood at 16% for Q4 of FY25. That said, as highlighted earlier, our focus on driving operational efficiencies remains firm and we expect this to support margin recovery going forward. Net profit for the quarter stood at rupees 101 crore compared to rupees 106 crore in Q4. FY24 on a full year basis, FY25 consolidated net revenue increased by 7.7% year on year to 3474 crore compared to Rs.
3225 crore in FY24. The wire rope segment remained our key contributor accounting for 72% of total revenue. Operating EBITDA for the year was Rs. 597 crore, largely stable compared to Rs. 599 crores in FY24. Profit before tax stood at Rs. 527 crores as against Rs. 550 crores in FY24. Pvt. Was impacted by higher depreciation cost resulting from capitalization of assets worth rupees 303 crores. On the balance sheet front, I am pleased to report a notable improvement in our financial position. As of 31st March 25th, our consolidated net debt reduced to rupees 63 crore down significantly from rupees 124 crore a year ago.
Correspondingly, our net debt to equity ratio improved to 0.02 times down from 0.05 times as of March 24th. Our prudent capital allocation ensures that ongoing and planned growth investments remain comfortably funded. From a cash flow standpoint, we delivered a solid improvement. Cash flow from operations before tax in FY25 stood at rupees 541 crores representing 91% of operating EBITDA compared to rupees 200 crores which was 63% of the operating EBITDA in H1 of FY25. These robust cash flows coupled with adequate working capital headroom provide a strong foundation for future investments and capital deployment. In closing, I would like to reiterate our confidence in one KUSHAMARTIN’S long term growth trajectory, we expect continued momentum across both volume led and value led drivers supported by strategic initiatives such as one Usha Martin Transformation and ongoing investments in digitalizations and customer engagement.
We remain committed to delivering sustained performance improvements and long term value creation for all stakeholders. This brings me to the end of my address. I will now request the moderator to open the line for question and answer session.
Questions and Answers:
operator
Thank you ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their Touchstone telephone. If you wish to remove yourself from the question queue, you may press Star and two Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Aman from AK securities. Please go ahead.
Aman Kumar Sonthalia
Good afternoon Sir, I have few questions regarding the performance and future direction of the company. What is the reason behind the dip in the margin and when we can expect margin improvement?
Shreya Jhawar
Hi sir, thank you for your question. So as we mentioned in our opening remarks that there was a one time redundancy cost of Rupees four crore this quarter which did impact our margins, our margin percentage. Secondly, the margin percentage was also impacted during this quarter because of the LRPC mix. So the volumes of LRPC in this particular quarter was about 15k compared to Q3 where it was about 13k metric tonne. So this LRPC mix, if we think about how this accounted for the overall margin percentage, it would be approximately a 1% margin reduction on account of this mix.
And thirdly, another reason is also the higher costs in the European entities which we had mentioned in the last call as well which continue to impact our margin and for that we have taken certain initiatives especially in our BSUK facility and based on these restructuring initiatives of the BSUK business which we are implementing, we do expect further margin improvement especially starting Q2 of this next financial year.
Aman Kumar Sonthalia
Next question is when can for the last few years I think our volume in wire group is almost 60% so from when we can see noticeable volume growth in wire rope segment.
Mr. Rajeev Jhawar
As I had mentioned in the opening remarks that our volume grow by about 10% year on year. As far as the wire rope is concerned, the new CAPEX is already in place and we have the capability of increasing our volume and as the markets keep on improving as we are targeting newer markets in Saudi Arabia in also different sectors, even further consolidating our markets in India, we are now geared up to increase our volumes and I expect quarter on quarter we should be able to see growth in our volumes as we move forward.
Aman Kumar Sonthalia
What is the latest update on Gulf Iron Wireline, plasticated LRPC and business in Saudi Arabia?
Mr. Rajeev Jhawar
The galstar line is now started to produce and we have got trial orders as well as some commercial orders from our customers. I’m happy to say that the samples produced have been accepted well in terms of, of the quality and we are now expecting the ramp up of volumes to take place and we expect that we should be gradually ramping up the volumes in the next two quarters to be able to come to close to 400, 450 tons a month and then by end of this year to come to almost 80, 85% of our capacity on the plasticated LRPC.
The our plant is capable of producing 500 tonnes a month. As of now we are doing close to 200 to 250 tons a month. This largely depends on the various projects which we have quoted for and depending on the demand from these projects and as the schedules come we should be able to ramp up. We would say that in the next three to four quarters we based on the projected demand and the projects under the pipeline we feel that there is an opportunity that towards the end of the year we see the volume of take come closer to our capacity.
Aman Kumar Sonthalia
And sir, how is the European and US market?
Mr. Rajeev Jhawar
The European market is fairly stable I would say with demand from oil and offshore continues to be strong with good inquiries. I think the order book should get better in the coming months. Even the elevator business is stable as far as the US market is concerned. The markets are a little confused at the moment with the various tariff issues which are happening on a day to day basis. But based on our team we expect that the business should ultimately be stable. As the US does not have the manufacturing capability of the additional volumes and with a fairly good product mix and customer base established already there, we should expect the business.
We should expect the business to be as usual and hopefully better as things stabilize.
Aman Kumar Sonthalia
Sir, one last question, sir. There may be chance of peace between Ukraine and Russia in near future. This could present a significant opportunity for our product in Ukraine. So how prepared are we to capitalize on this potential if it happens?
Mr. Rajeev Jhawar
First of all, if it happens, that would be very good for the overall geopolitical situation. I think this would lead to a big reconstruction of the war, whatever happened during the destruction in the war. So a lot of reconstruction activity will happen thereby increasing the demand for crane ropes as well as elevator ropes. Particularly in these two areas. And I feel that that could result into a big opportunity coming up. But that always depends if and when it happens. And the company with its expansion has enough capacity to be able to take care of these demands if and when they come.
Aman Kumar Sonthalia
Okay, sir, thanks a lot.
operator
Thank you. The next question comes from the line of Rajesh Majumdar from BNK Securities. Please go ahead.
Rajesh Majumdar
Hi, good afternoon everybody. And so I said I had a question that our wire rope quarterly volumes were about 28kt into QFY25 and from there it has fallen to 25kt. Can we attribute this entirely to the European business and the fact that there is some short term restructuring going on or is there some slackening in the demand as well?
Shreya Jhawar
Thanks for your question. See, in the European market, while the demand is healthy, there have been certain margin pressures which have impacted the performance and there are some competitive pressures that we see seen the market. So part of it would be attributed to the European market, as you mentioned, but overall globally as well. In Q4 there was a slight slowdown on account of the uncertainties around policies and tariffs. And that’s why the performance was largely flat compared to Q4 of the previous year. At the same time, in terms of the domestic market as well as market in the Middle east, certain profile project execution was slightly slower than anticipated.
But we see some early signs and we think it should pick up in the upcoming year. And as we mentioned before, our focus will be now to optimize our costs in order to tackle some of these pressures that we’re seeing in the European market as well as globally. And at the same time focus on the value added rope products as well as our rigging business in Europe, Middle East, Southeast Asia in order to to grow our volumes as well as our margins.
Rajesh Majumdar
Okay, and secondly, on your outlook for margins, we’ve seen 16% around for the two consecutive quarters and you said 2Q FY26, so you have a long term guidance of 18 to 20%. So will you see that in 2Q or even later than 2Q that kind of a margin profile coming back in the company? Yeah, that was my last question.
Shreya Jhawar
Yes, quarter and on quarter, obviously depending on the mix, the margin can change. But I would say that over the next year we expect an Overall margin of 18% at minimum is what we are targeting with stronger progress towards the second half as some of our one Usha Martin initiatives are in full swing. So that’s on an overall year basis we still maintain a minimum of 18% is our target okay, thank you.
operator
Thank you ladies and gentlemen. If you wish to ask a question, please press star and 1. The next question comes from the line of Krupanshu from thinkwise wealth managers. Please go ahead.
Krupanshu Shah
Hi. Thank you for the opportunity. So just on the wire of volumes. So earlier we had some visibility from Saudi Arabia market, new growth of we were targeting 4,000 metric tons right in a year. So like that, even elevator rope, we were targeting around 12,000 tons. So how is our visibility now now that we went to FY26 and other new opportunities from the UK India Free Trade Agreement. Like just on the volume side, if you can give me some visibility.
Mr. Rajeev Jhawar
That’s my first question on the thank you question. So on the elevator volumes I think we are on target and we expect strong demand both from the international markets where we are operating as well as in the domestic market. With the growth in the tier 2, tier 3 cities, we expect the demand to be fairly strong and we are on target to achieve the numbers what we had projected. In terms of the Saudi market we have started doing between 150 to 200 tons a month which is on an annual rate of close to 2,500 tonnes.
And we expect that gradually because we have just started few months now with initial supplies made, some repeat orders coming, we are fairly optimistic to achieve these numbers, maybe a quarter here or there. But ultimately the demand traction is fairly strong and we expect to be around the 4,000 tonnes by the time the exit rate of 4,000 tonnes we should be able to achieve.
Krupanshu Shah
And on the UK India agreement, does it open any opportunities for us, the UK India?
Mr. Rajeev Jhawar
I don’t think our demand between India and UK through our BSUK continues to be stable and we expect that these volumes should be continuing. Neither we see, I don’t see a big, big increase because our new model which we have built up where we now supply directly from India to the European companies instead of through BS UK plant. So there may not be direct supplies to BS uk but overall our volumes in the Europa plant market on the BS UK brand should be fairly stable to getting better.
Krupanshu Shah
Understood. And on the gross margin. So this quarter we’ve obviously seen a significant compression. Can we attribute it entirely to the product mix change? And if supposing a wire rope mix improves then is a 50% kind of a margin reasonable?
Mr. Rajeev Jhawar
As Shreya just mentioned that because of almost both as well as 1% of the mix being.
Krupanshu Shah
I’m sorry to interrupt you, your audio is not coming in clear.
Shreya Jhawar
Hello.
Krupanshu Shah
There is some disturbance in the line. We can get an eco.
operator
Yes, sir. Ladies and gentlemen, I would request you to stay connected while I reconnect the management. Thank you.
Shreya Jhawar
It’s on account of.
operator
Ladies and gentlemen, we have the management reconnected. Krupanshu, you can please continue. Thank you.
Krupanshu Shah
Yeah, my question on gross margins.
Shreya Jhawar
Yeah. That it was primarily due to the mix of LRPC which impacted the gross margins. If you know we look at our usual mix from the last couple of quarters, it would be at similar levels.
Krupanshu Shah
Understood, thanks. And my last question would be are wire and stands? Volume growth has been very encouraging. So where is this growth coming from? Exactly. If you can give us the type of orders also please. Thanks.
Mr. Rajeev Jhawar
Sector mainly from the auto auto segment and some of these specialized spring requirements and that is both which we supply to the domestic market as well as the customers are expensive. So it’s mainly coming from the auto and the specialized spring segment. As far as these trends is concerned, it is the LRPC which is because of the demand from the construction sector and the plasticated LRPC would be going into these big bridge construction. So these would be the sectors where we expect the growth coming from.
Krupanshu Shah
Okay, thank you.
operator
Thank you. The next question comes from the line of Prolin Nandu from Edelweiss Public Alternatives. Please go ahead.
Prolin Nandu
Yeah. Hi team. Thank you for giving me the opportunity. The first question is slightly on the margin pressure that you alluded to not just in this quarter but couple of quarters back as well that you have also clarified that there is slightly heightened competition. So my question is, you know, with let’s say this tariff thing settling and maybe the Ukraine issue also solving, should we some see some easing of competitive intensity LED margin pressure in the coming quarters. Any, any color on this aspect of, you know, margin pressure that we have alluded to in the past.
Any change there that you see in the near term or this margin pressure is something which you think is going to continue.
Mr. Rajeev Jhawar
As we mentioned, that margin pressure is because of two reasons. One is because of the competition which is always going to be there. And secondly, because we are going through, we could see that in our new model, in the business model which we have now gone for change in our model with our European subsidiary BSUK now focusing only on the higher value added products and the direct shipments from the new capacities built in India which would result in reduction in our fixed cost as well as some of the initiatives part of one Usha Martin, where we are focusing on shifting lot of back office work to India, thereby optimization, optimizing our cost, focusing on the Logistics, procurement and all these things.
All these things which are actively being pursued. We expect the year to be the whole year as Shreya mentioned, to be at minimum 18% EBITDA margins from the current levels of what 16% we are in overall with these initiatives and improvement in product mix and increase in volumes all coming together, we should expect to be around 18% for the year, minimum.
Prolin Nandu
I understand Mr. Jawar. So what I’m trying to understand is that this is not assuming any change in competition, right? Or any change in the intensity of competition. Am I correct in assuming that?
Mr. Rajeev Jhawar
Yeah, this is assuming that business as usual at our current level. Yeah, that’s what we are assuming as the state of business today.
Prolin Nandu
Understood. And on this restructuring, right, you have spent 4 crores as a one off, right in Q4, FY25. How much more do we intend to spend on restructuring? And do you think that the benefit might start accruing from Q1 onwards or this would be back ended even in FY26?
Shreya Jhawar
Yeah. So in terms of the BSUK restructuring we, you know, as part of our overall plan we are reducing the manpower at BSUK by about 50%. And that entire provision of 4 crore for that restructuring largely, you know, was on account of this manpower reduction which is a one time cost. And we don’t expect any further provisions to be taken in the upcoming quarter. So this was the major cost in terms of restructuring that we see when it comes to this initiative. At the same time we are also looking at optimizing the other fixed cost like we mentioned around the back office operation as so costs would reduce but we don’t expect any further provisions in in terms of restructuring to be taken.
Mr. Rajeev Jhawar
And the other question is when do we expect the benefit of this to start reflecting? I would say from you know, once all this is completed we’ll see the effect on the overall cost and improvement in margins from Q2 of this financial year.
Prolin Nandu
Okay, great. That’s it from my side. Thank you so much.
operator
Thank you. The next question comes from the line of Aryan Sharma from BNK Securities. Please go ahead.
Aryan Sharma
Yeah. Hi sir, thank you for the opportunity. Just a couple of questions regarding some guidances. So could you just guide me through like you mentioned previously that we can expect sequential volume growth but could you just guide you through some numbers as to what we are expecting over FY26.
Shreya Jhawar
Overall in terms of both volume and top line. We expect say about a 12 to 15% growth overall across the wire soap as well as wire so segment LRPC again you know it’s up and down depending on competitive pressures. So that within that our focus will be primarily on the plasticated lrpc. How much ever we can grow within our capacity of 500 tons a month.
Aryan Sharma
And like what will be our value add share then? What we are expecting value at share within biorops.
Shreya Jhawar
Our value add share right now in terms of revenue is 71%. The goal is to maintain that at a minimum and with the new capacities that have come on stream and certain OEM approvals that we are targeting, hopefully that should grow gradually as well. But we at minimum to maintain that share.
Aryan Sharma
Okay, and just one final question with regards to the restructuring which we are doing right now. So is there any quantifiable number which you guys have worked out on like how much they are expecting? Just EBITDA margin comes just because of this restructuring like over normalized. Abhijit.
Mr. Abhijit Paul
So once this entire restructuring exercise is done in the European facilities and across the global entities, we are looking at the cost side for all, all the entities wherever we have scope. So this will have an impact of one to two percent on the margin. One to one and a half percent on the margin. So the cost impact will be around 1 to 1 and a half maximum to 2% of the margin that we are targeting.
Aryan Sharma
Okay, that’s it from my side. Thank you.
operator
Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and 1. Once again a reminder ladies and gentlemen, if you wish to ask a question, please press star and 1. The next question comes from the line of Shraddha Kapadia from Smith, please. Please go ahead. Shraddha. I do apologize to interrupt you there, but we are. You are not clear. Your audio is not clear.
Shraddha Kapadia
Hello, am I audible now?
Mr. Rajeev Jhawar
Yes, please go ahead.
Shraddha Kapadia
Yeah, so my question is majorly regarding the international market. So currently they contribute approximately 55% of our revenues. So for the future or the next leg of expansion, which are the major markets which we would be targeting in terms of the international market, as previously mentioned, Saudi Arabia be one of the major markets that we’re targeting. There are lot of construction projects as well as, you know, within oil and gas and the port sector in Saudi Arabia. That would boost the demand for our crane ropes as well as the slings. So that is one of the markets we’re targeting.
Secondly, offshore wind. The offshore wind sector in the UK and the North Sea area is another key demand driver because we’re seeing certain projects in the pipeline for the upcoming years. Thirdly in UAE also the oil and Gas projects are gaining some traction now. So with if some of those projects materialize, then we would see growing demand for our oil and offshore ropes in the UAE as well. And then in the Americas, of course, the market was a bit uncertain over the last couple of last couple of quarters. But now with things stabilizing a bit, we hope that the mining as well as the port and elevator markets that have been strong in the US that continues as well.
That being said, while international market share has grown and now is at say 55% of the total top line for the last few quarters now we think this would maintain at the same levels because in the domestic market as well, we’re seeing a lot of traction and a lot of while it was slow in terms of project execution in the last few quarters, hopefully with the demand in the elevator sector as well as some of the train ropes and the construction sector, we see growth in the domestic market as well. So overall the mix would largely be at the 55, 56% range for international and for.
Sure.
Shreya Jhawar
Thank you so much for such a detailed answer. So actually my next question was somewhat related to this only. So if we take a look, the infrastructure spending is picking up in India, Europe. So how do you look at this going forward for FY26?
Mr. Rajeev Jhawar
Yeah, the infra growth has started picking up in India and also if the geopolitical situation gets better, as we discussed earlier, this should bring a big opportunity growth in the infra sector and that would enable our demand for crane ropes and elevator ropes to be fairly strong both in the domestic and international markets. Because with infra growth these are the two sectors where we see good demand should come in. So hopefully it should get better in the coming quarters if the infra growth trend continues.
Shraddha Kapadia
Thank you so much for answering my question and all the best for future.
Mr. Rajeev Jhawar
Thank you.
operator
Thank you. The next question comes from the line of Pritesh Chheta from Lucky Investments. Please go ahead.
Pritesh Chheta
Ma’ am. Can you give a bridge on what is the capacity utilization in wire nodes that you have on the capacity and how much is the expanded capacity addition. That you have done? So our capacity relation for the current year is around 80 to 85% and with the additional capacity coming in we’ll be reaching around our wire rope capacity will be around 1 lakh 50,000 will be our revised wire rope capacity and the current volumes around 1 lakh 4000. So we have headroom for growth for the next three to four years. So that is the current.
Mr. Rajeev Jhawar
So at 104,000 you are 85% utilization. So you’re basically adding about 30,000 tons now.
Pritesh Chheta
So 104,000 is the current volumes on a capacity of 1:25,000. And we are adding another 20,000 in the row. So 20 to 25,000, so it will reach around 1:50,000 by the end of this quarter. So on that basis, that for the. Next two to three years with a. 10% volume in growth, we are quite covered.
Mr. Rajeev Jhawar
Okay, what’s your market share in US and Europe in wire ropes?
Shreya Jhawar
In Y ropes, our market share in US would be 3 to 4% overall. So we are at a low base right now in terms of our overall top line. About 5 to 6% comes from the US market. So we are at a fairly low base in terms of market share and even our mix of business in the total revenue, but with certain traction in mining elevator ropes as well as certain port contracts that we’re looking at, hopefully that is something that we can build on. But again, the US is something where there is a little bit of uncertainty.
So even from US Operations, we’re also looking at, you know, Canada as well as Latin America as opportunities for growth. So that’s something that we’re looking to pursue more aggressively over this financial year. In Europe, again in different sectors, you know, it would be different. In the fishing rope segment, for example, it would be less than 5%. While in oil and offshore our market share is more with the Oceanmax brand. But overall I would say it’s still between 8 to 9% market share even in Europe. The competition is obviously more intense in the European market with lot of regional players, a couple of regional players in the high performance sector.
But I think with new model, again back to the new Brunt and Shaw model that we have with supplies from India, we think that the European market is an area where we can get a lot of growth because the customers have shown positive signs and acceptance of supplies from our Ranchi facility that have already started. So with the reduced cost, with the reduced cost being more competitive in the market as well as with the existence of our products from India, I think the combination of that should help us increase the market share in Europe.
Mr. Rajeev Jhawar
And lastly, what is the differential EBITDA per kg between wire ropes and wireless trends?
Shreya Jhawar
Overall, as you know, our EBITDA per ton has been at for the year about 30,000 rupees per ton. We, we don’t usually separate it out between wire rope and, and wires because a lot of the, lot of the capacities are fungible. But if I have to give you a ballpark via rope 55 to 50,000 rupees per ton whereas virus would be 12 to 15,000 rupees per ton.
Mr. Rajeev Jhawar
They are not ordinal. Wire ropes is how much.
Shreya Jhawar
My ropes would be between 55 to 60,000 rupees whereas wires 12 to 15,000. But these are indicative.
Pritesh Chheta
Thank you very much.
operator
Thank you. The next question comes from the line of Jatin from Invest Savvy Portfolio Management. Please go ahead.
Jatin
Yes, thank you for taking the question. We’d like to know what are the top two opportunities and top two risks that you see for the company especially in light of all the, you know, global uncertainties which have crept in.
Mr. Rajeev Jhawar
I would say the opportunities would always be in the infrastructure and the oil and offshore which continues to be fairly robust with most of the countries still trying to be energy self sufficient. And that has been a growth area for us in the last year as well and that continues to be strong. Elevator row business also continues to be fairly strong particularly in the domestic market with the extensive growth in the tier 2, tier 3 cities. Also on the real estate business with the multi storeyed buildings. So that is an area where we feel that the growth would continue to be very strong in the coming should be there.
On the risk side of course, the top risk of course the uncertainty on the US tariff which hopefully should not be a major issue for us but definitely with the new policy changes coming every day, uncertainties in the minds of the customers that what happens if they import and the prices are higher and then the tariffs come down, they get stuck with higher inventory and all these uncertainties could definitely be one of the risk factors. The other risk factors could be if the geopolitical situation gets worse globally it could definitely again destabilize the logistics, the market.
So these could be the potential risks. What we see in front of us.
Jatin
Now, the fact that China’s tariff is more or less seems to have been frozen at 30% and India currently is at 26 which could go down. Would that be an opportunity for you?
Shreya Jhawar
For us, you know when it comes to the tariffs we are under section 232. So it’s almost a level playing field of 25% for all countries. China is a bit higher I think at about 35% under for our sector in in particular we don’t see that changing. This has been effective since March 12th and you know before that there was still a bit of uncertainty, uncertainty. But since then I think this has stabilized and I mean in the future we don’t know what that holds but as of now this is what what it is. So for all other countries except China, it’s a 25 level playing field.
Jatin
And the UK treaty has also not changed that for UK. The US, UK treaty, the TT between whatever, the agreement between US and UK which was just signed, that has also not changed that for uk.
Krupanshu Shah
Nothing for us. So those changes are not having any impact on us.
Jatin
Okay, thanks a lot.
operator
Thank you ladies and gentlemen. As there are no further questions from the participant, I now hand the conference over to the management for their closing comments.
Anoop Poojari
I would like to thank everyone for attending the call and showing interest in Usha Martin Ltd. I hope we have been able to answer all your questions. The company is dedicated to creating value for all its stakeholders in a sustainable manner. Should you need any further clarification or would you like to know more about the company, please feel free to reach out to US or to CDR India. Thank you once again for taking the time to join us on the call and see you all in the next quarter. Thank you.
operator
Thank you on behalf of Usha Martin Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines. SA.