Nuvoco Vistas shares rose by 10% following the announcement of a robust first-quarter performance for FY27. The company reported a 20% increase in net profit to Rs 160 crore and a 9% growth in revenue to Rs 3,129 crore, driven by resilient execution and cost discipline.
The company achieved a 5% year-on-year volume growth despite a challenging operating environment. It also recorded a 7% YoY EBITDA growth, marking its strongest first-quarter EBITDA performance to date. Nuvoco noted that underlying cement demand improved during the June quarter, although it was temporarily subdued in some states due to election-related factors. Central government capital expenditure rose 13% year-on-year in Q1 FY27, supporting ongoing infrastructure and housing projects.
Choice Institutional Equities has maintained its 'Buy' rating on Nuvoco Vistas, revising its target price to Rs 500 per share, indicating a 47% upside. The brokerage cited resilient pricing, disciplined cost management, and a strong growth pipeline as key factors. It expects Q2 FY27 cost inflation to be around Rs 100 per tonne, lower than previous estimates, and anticipates that fuel optimisation and stable cement prices will cushion margin pressures.
“The geopolitical uncertainty that has persisted over recent quarters has tested supply chains and cost structures across the industry. Our teams have managed this well, maintaining strong cost discipline while preserving operational performance.”
Nuvoco Vistas
Nomura also retained a 'Buy' rating with a target price of Rs 400, a 17% upside. The brokerage highlighted that Nuvoco's Q1 FY27 EBITDA of Rs 570 crore exceeded its estimates by 22%, driven by stronger-than-expected realisations. Grey cement volumes grew 4% year-on-year to 5.3 million tonnes, with blended realisations improving 7% quarter-on-quarter.
The company stated, "The geopolitical uncertainty that has persisted over recent quarters has tested supply chains and cost structures across the industry. Our teams have managed this well, maintaining strong cost discipline while preserving operational performance."
Background
Nuvoco Vistas' performance comes amid a broader industry context where cement companies are navigating challenges such as geopolitical uncertainties and cost pressures. The company's strategic focus on cost optimisation and supply chain efficiency has positioned it well for future growth.
Looking ahead, Nuvoco Vistas plans to continue its focus on prudent procurement and cost optimisation. The early commissioning of the 2 MTPA Surat grinding unit is expected to support long-term growth and expand the company's presence in western India.
