Author: Nishtha Mehrotra | EQMint
Synopsis:
- Nuvoco Vistas reported a 78% year-on-year rise in Q2 FY27 net profit to approximately ₹65 crore, while revenue increased 13.5% to ₹2,790 crore.
- Cement volumes grew 9% to 4.7 million tonnes, although EBITDA margins remained under pressure from muted prices, monsoon disruption and higher input costs.
- The company commissioned a 2 MTPA grinding unit in Gujarat and announced a 46.4 MW wind-solar hybrid project with CleanMax in Rajasthan.
Nuvoco Vistas Corporation Limited, part of the Nirma Group, reported stronger year-on-year financial performance for the July–September quarter of FY27, supported by higher cement volumes and revenue. The results, announced on October 22, 2026, came despite monsoon-related disruptions, muted cement prices and elevated input costs.
Revenue and profit increase
The company reported consolidated revenue from operations of ₹2,790 crore, up 13.5% from ₹2,458 crore in Q2 FY26. Cement volumes increased 9% to 4.7 million tonnes from 4.3 million tonnes a year earlier.
EBITDA rose 11% to ₹411 crore from ₹371 crore, while net profit increased to approximately ₹65 crore from ₹36.4 crore. The exact reported profit should be confirmed against the company’s results filing.
Sequentially, performance weakened compared with Q1 FY27, when revenue stood at ₹3,129 crore and EBITDA reached ₹572 crore. The decline reflects, in part, the seasonal impact of monsoon conditions on cement demand and operations.
Margins remain under pressure
Managing Director Jayakumar Krishnaswamy cited erratic rainfall, supply chain disruptions, logistics challenges and higher input costs linked to geopolitical uncertainty.
Muted cement prices also weighed on performance. The company said its focus on premium, higher-value products helped protect margins.
EBITDA per tonne was approximately ₹874 in Q2 FY27, compared with ₹863 a year earlier, based on the reported volume and EBITDA figures. This indicates that profit growth was driven largely by higher volumes rather than a significant improvement in operating profitability.
Net profit grew considerably faster than EBITDA, but the available figures do not establish the precise reasons for the increase. The latest interest expense and finance costs would need to be checked to assess the contribution from debt reduction.
Gujarat expansion and renewable energy deal
Nuvoco commissioned a 2 million tonnes per annum (MTPA) grinding unit at Limla in Surat, Gujarat, expanding its manufacturing footprint.
The company has outlined capital expenditure plans of approximately ₹900 crore for FY27 and ₹960 crore for FY28, primarily directed towards Vadraj Cement facilities and expansion in eastern India.
Separately, Nuvoco has partnered with CleanMax for a 46.4 MW wind-solar hybrid project in Rajasthan. Once operational, the project is expected to generate approximately 100 million units of renewable electricity annually. The company has not disclosed the commissioning timeline, investment amount or expected cost savings.
Capacity target and outlook
Nuvoco aims to reach cement capacity of 35 MTPA by FY28. The timeline is worth monitoring because earlier company guidance had indicated a target of reaching the same capacity by the end of FY27.
Investors will also be watching cement price recovery after the monsoon, demand during the second half of FY27, fuel and freight costs, debt levels and capital expenditure.
While higher volumes and revenue indicate continued business growth, sustained margin improvement and disciplined capital spending will be important in determining the strength of Nuvoco’s future earnings.
Source: https://sqst.in/8cv6F
Disclaimer: This article is for information purposes only and is not investment advice.
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