Nuvoco Vistas shares surge 12% on record Q1 earnings
Nuvoco Vistas stock jumped 12% after a record first-quarter EBITDA performance driven by volume growth and cost discipline, even as analysts flag looming cost inflation.
Nuvoco Vistas shares rallied 12.38% on the National Stock Exchange on Wednesday to an intraday high of ₹384.65, following the release of its first-quarter results for fiscal year 2027. The stock opened at ₹348.85, up from a previous close of ₹341.40.
The cement manufacturer reported a 20% year-on-year increase in net profit to ₹160 crore, while revenue climbed 9% to ₹3,129 crore. EBITDA rose 7% year-on-year, marking the company's strongest first-quarter EBITDA performance on record.
Management attributed the earnings beat to a 5% increase in sales volumes and strict cost controls. “We have had a strong start to the year, delivering higher business performance despite macro headwinds, particularly emanating from geopolitical tensions,” said Jayakumar Krishnaswamy, Managing Director of Nuvoco Vistas. He highlighted the early inauguration of a new Grinding Unit at Limla, Surat, as evidence of the company's execution capabilities.
Underlying cement demand strengthened during the June quarter, although it remained temporarily muted in certain states due to regional elections. Looking past this short-term volatility, broader demand fundamentals remain supported by government spending. Central capital expenditure grew 13% year-on-year up to May 2026, providing a steady pipeline of infrastructure and housing projects.
Brokerages responded positively to the results, though they cautioned about near-term cost headwinds. Choice Broking maintained its 'buy' rating with a target price of ₹500, implying an upside of 46.5%. The firm cited strong pricing power and a credible capacity expansion runway, but noted that second-quarter cost inflation is now projected at around ₹100 per tonne quarter-on-quarter. This includes roughly ₹50 per tonne in higher power costs due to a planned kiln shutdown, an improvement on an earlier estimate of ₹200 per tonne.
PL Capital also kept its 'buy' rating, raising its target price to ₹510 from ₹471. The brokerage, which noted the stock trades at an EV of 6.5 times its FY28E EBITDA, lifted its EBITDA estimates by 11% and 8% respectively. PL Capital pointed to upcoming projects like the Vadraj refurbishment and debottlenecking to drive future volume growth. It expects initiatives around fuel mix optimisation and product premiumisation to structurally improve profitability, forecasting a 13% EBITDA compound annual growth rate through FY28.
