Nuvoco Vistas Corporation Limited closed the fiscal year 2026 on a historic high, reporting record annual volumes of 20.4 million tons and an EBITDA of INR 1,881 crores. Despite market headwinds in the middle of the year, the company saw a robust fourth quarter, reaching 6 million tons in volume and INR 590 crores in quarterly EBITDA, driven by accelerated infrastructure demand and strategic premiumization efforts.
Financial and Operational Milestones
The company achieved its strongest annual performance to date, with total volume growing to 20.4 million tons. A significant driver of this success was the fourth quarter (Jan-Mar 2026), which set a new record with 6 million tons in volume and INR 590 crores in EBITDA. Nuvoco successfully expanded its premiumization base to 43%, a year-on-year increase of 300 basis points.
Strategic Growth and Expansion
Management highlighted that the Vadraj Cement project remains on schedule, with clinker and grinding units slated for commissioning between Q3 FY27 and Q1 FY28. Additionally, the company is expanding its footprint in the East with a 4 million tons per annum grinding capacity program. Work on the bulk cement terminal at Viramgam, Gujarat, is also underway to serve as a key distribution hub.
Operational Efficiency and Cost Management
To mitigate rising input costs, particularly for fuel and packaging, Nuvoco is aggressively pursuing cost optimization. The company aims to reduce petcoke consumption by 300 to 500 basis points and is increasing the share of Alternative Fuels and Raw Materials (AFR) to a target of 13% to 15% in FY27. Furthermore, efforts are ongoing to replace mineral gypsum with FGD gypsum to better manage rising material costs.
Future Outlook
Looking ahead, Nuvoco remains optimistic about structural demand, citing strong infrastructure spending by central and state governments. The company anticipates industry volume growth of 7% to 9% for FY27. Despite near-term challenges regarding packaging availability and fuel price volatility, management remains focused on maintaining a strong balance sheet while balancing growth initiatives with a target debt-to-EBITDA ratio of 2x to 2.5x.
Source: BSE
