Nuvoco Vistas shares rocket 14% after Q1 net profit jumps 20%; firm reports strongest EBITDA ever
Shares of Nuvoco Vistas surged as much as 14% to an intraday high of Rs 359 on the BSE on Tuesday after the company reported
Shares of Nuvoco Vistas surged as much as 14% to an intraday high of Rs 359 on the BSE on Tuesday after the company reported a 20% year-on-year rise in net profit to Rs 160 crore for the first quarter of FY27, while revenue increased 9% to Rs 3,129 crore. Nuvoco Vistas said volume growth of 5% on-year reflects resilient execution despite a challenging operating environment. Further, sustained cost discipline and operational efficiencies supported 7% YoY EBITDA growth, marking the company’s strongest first quarter EBITDA performance to date. Nuvoco Q1: Near-term outlookNuvoco said underlying cement demand improved during the June quarter, although demand remained temporarily subdued in some states due to election-related factors. The company noted that central government capital expenditure rose 13% year-on-year in Q1 FY27, up to May 2026, while ongoing infrastructure and housing projects continued to support demand.Also read: Nuvoco Vistas starts Limla Cement Plant, strengthens footprint in Western IndiaLooking ahead, Nuvoco expects cement demand to strengthen after the monsoon.
It said the planned increase in capital expenditure of 11.5% by the Centre and 15% by state governments in FY27, along with the government's continued focus on infrastructure and resilient demand from both rural and urban markets, is expected to support the sector.However, the company said geopolitical developments could put upward pressure on input costs, particularly fuel and packaging bags. It also noted that the availability of railway rakes remains a key factor to monitor, given its importance for cement transportation and logistics.Nuvoco project execution on trackNuvoco said it has achieved a key milestone in its expansion plans by commissioning 2 MMTPA of grinding capacity at the Limla Cement Plant in Surat, one of the Vadraj Cement Plant facilities, ahead of schedule. The company said the early commissioning reflects its strong project execution capabilities and strengthens its presence in western India, while freeing up capacity at its Rajasthan plants to better serve the northern market.The company added that work at its Kutch project is progressing as planned, with phased commissioning expected to begin from Q3 FY27.
It has also started work on a bulk cement terminal at Viramgam, Sachana, Gujarat, which will feature a dedicated railway siding. The facility is targeted to become operational by Q2 FY28 and is expected to serve as a strategic distribution hub to strengthen Nuvoco's presence across Gujarat.Nuvoco said its broader capacity expansion programme remains on track and is expected to increase its total cement manufacturing capacity to 35 MMTPA by FY28.Read more: Cement firms do well amid strain, but face capacity testNuvoco Q1 commentary“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.”Also read: A $2.5 billion FII buying has domestic investors asking: Is foreign money shifting to India?Going forward, the company said it remains watchful of evolving geopolitical developments and will continue to pursue prudent procurement, cost optimisation, and ongoing improvements in supply chain efficiency.” (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own.
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