Nuvoco Vistas Corp. Ltd delivered a strong March quarter (Q4FY26) performance with Ebitda touching a record quarterly high of ₹587.6 crore, exceeding Bloomberg's consensus estimate by 5%. According to reports from Mint, the cement company achieved this milestone through better realizations, though it faces mounting cost pressures from the ongoing West Asia war. The company's cement volumes rose 5% year-on-year to 5.98 million tonnes in Q4FY26, supported by government-led spending and infrastructure demand.
The company's Q4FY26 earnings concall revealed that granule costs surged 56% within the quarter, significantly impacting operational margins. As reported by Fuzz AI, blended fuel costs are expected to rise to ₹1.51-1.55 per kcal from ₹1.44 in the June quarter (Q1FY27), with a probability of further increases in Q2FY27. Packaging costs have already risen by ₹20 per tonne in March, followed by another ₹100 per tonne impact expected in April. Mineral gypsum costs are also elevated due to supply disruptions from Oman, with the company expecting a total cost inflation of ₹200 per tonne to reflect in FY27.
To combat rising costs, Nuvoco implemented comprehensive price increases across eastern, northern, and western markets while outlining fuel mix optimization strategies to reduce pet coke dependency. According to Fuzz AI, the company implemented blended price increases of ₹8-12 per bag and ₹10-15 per bag across east and north India markets respectively. The stock has declined 11% so far in 2026 and trades at FY28 EV/Ebitda of 7x as per Bloomberg data. The company aims for 7-9% volume growth in FY27, in line with industry expectations.
The company is ramping up its Vadraj Cement asset, with clinker and grinding units scheduled for commissioning in phases between Q3FY27 and Q1FY28. As reported by Mint, this expansion will enhance Nuvoco's presence in the west and help reduce its dependence on the competitive east region where over 70% of its installed capacity is located. Management expressed cautious optimism for FY27 demand recovery, supported by the company's dominant 70% market presence in eastern India. However, Antique Stock Broking cautions that profitability from the Vadraj unit may be lower than Nuvoco's average due to initial startup costs and lower utilization rates.
