Nuvoco Vistas Q1 FY26: Experts Weigh Scope for Outperformance

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Acquisition of Vadraj Cement Ltd. for ₹1,800 crore in June 2025 is a cornerstone of Nuvoco’s expansion strategy, claimed analysts

By S JHA

MUMBAI, July 20, 2025 — Nuvoco Vistas Corporation Ltd., India’s fifth-largest cement producer, reported stellar Q1 FY26 results. revenue rose by 9% year-on-year (YoY) to ₹2,887.5 crore. Net profit soared to ₹133.16 crore from ₹2.84 crore in the same quarter last year.

The company achieved a consolidated cement sales volume of 5.1 million metric tonnes (MMT), up 6% YoY, and recorded its highest-ever first-quarter EBITDA of ₹533 crore, driven by strong demand, premiumization, and stable costs.

StockEdge highlighted these achievements on its Telegram channel, noting, “Nuvoco Vistas Q1 FY26 Highlights: Revenue up 9% YoY, Net Profit jumped, and sales hit 5.1 MT (+6% YoY). Plus, the Vadraj Cement acquisition is complete, eyeing Q3 FY27 commercial production!”

“The Company witnessed healthy volume growth during the quarter. It maintained a sharp focus on premiumisation and trade mix, which contributed to enhanced realisations and led to the highest-ever first-quarter consolidated EBITDA in the Company’s history,” said Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas Corp, in a company press release after the Q1FY26 result announcement.

He added, “Following the successful acquisition of Vadraj Cement, the Company is fully geared up to operationalise the plants at Kutch and Surat by Q3 FY27. The company asserted that it will expand its market footprint in the Western region.

Financial Performance and Strategic Moves

Nuvoco’s Q1 FY26 financials reflect robust operational efficiency. Consolidated revenue from operations grew to ₹2,872.7 crore from ₹2,636.48 crore, with total income, including other income, reaching ₹2,887.5 crore, up 9.33% YoY. Expenses remained nearly flat at ₹2,685.9 crore, boosting profitability.

The company’s EBITDA surged 53% YoY to ₹533 crore. Unitary EBITDA stood at ₹1,017 per tonne, up 5% sequentially, driven by a 6% YoY volume increase and a 2.6% improvement in price realizations. Premium products accounted for 41% of trade volume. The trade mix hit a 13-quarter high of 76%. Result brought spotlight on Nuvoco’s focus on high-margin offerings like Concreto and Duraguard.

The acquisition of Vadraj Cement Ltd. for ₹1,800 crore, completed in June 2025, is a cornerstone of Nuvoco’s expansion strategy, claimed analysts. Funded by ₹600 crore in long-term debt and ₹1,200 crore in short-term bridge financing, the deal will increase Nuvoco’s capacity from 25 MMT to 31 MMT by Q3 FY27, strengthening its presence in Western and Northern India.

Ankit Kedia of Phillip Capital was optimistic, stating on X, “Nuvoco’s Q1 FY26 results show strong margin expansion and volume growth, with the Vadraj acquisition positioning it for long-term market share gains in Western India.”

Emkay Global initiated coverage with a ‘Buy’ rating, projecting a 15% upside, citing Nuvoco’s focus on premiumization and cost efficiency. “The company’s deleveraging efforts and strategic expansion into high-growth regions make it a compelling pick in the cement sector,” Emkay noted.

Technical Analysis and Stock Performance

Nuvoco’s stock soared 9% on July 18, 2025, hitting a two-year high of ₹417.35 on the BSE, with trading volumes surging over 10-fold to 2.37 million shares. The stock closed at ₹382.65, up 1.7%, and has gained 12% over the past month and 11% year-to-date. Technical indicators show bullish momentum, with the stock trading above its 50-day and 200-day moving averages. The Relative Strength Index (RSI) is at 62, indicating room for further upside before reaching overbought territory. However, analysts warn of resistance near ₹420 and support at ₹350.

“Nuvoco’s breakout above ₹400 signals strong bullish sentiment, but investors should watch for profit-taking at higher levels,” noted technical analyst Rajesh Bhosale on X.

(Disclaimer: This article makes no recommendation to buy shares of any company)

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