Ultrafine grained low carbon steel processed by high pressure torsion (HPT) has been investigated. Depending on initial state (ferritic-pearlitic state after normalization at 950°C, or martensitic ones after quenching from 950°C and 1180°C), the evolution of the microstructure and the mechanical properties was investigated after HPT and annealing at 400-600°C using transmission electron microscopy and X-ray analysis. It has been shown that HPT of martensitic low carbon steel provides a finer structure then that for ferritic-pearlitic initial state, and the initial martensitic morphology and phase composition is strongly dependent on the temperature of quenching. The initial structure was refined by HPT to 95nm in ferritic-pearlitic state and up to 65 and 50 nm in martensitic ones (after quenching from 950°C and 1180°C, respectively). Such ultrafine grained structures demonstrate substantial mechanical properties and possess a high thermal stability up to 500°C in all investigated states. Annealing for 1 h at 500°C results in grain growth up to 860nm for ferritic-pearlitic initial state and 150-450 nm for martensitic ones.