Nuvoco Vistas reported a 62% year-on-year increase in Q2 EBITDA to ₹371 crores. The company navigated intense monsoon and GST rate revisions, successfully delivering a 1% quarter-on-quarter revenue per ton increase. Premiumization reached 44%, and net debt decreased by ₹1,009 crore year-on-year. The company is expanding capacity in the East by 4 million tons per annum, targeting completion between December 2025 and FY’27.
Financial Performance Highlights
Nuvoco Vistas Corporation Limited’s Q2 FY’26 earnings call highlighted a strong performance despite challenging conditions. Key achievements include:
- EBITDA increased by 62% year-on-year to ₹371 crores.
- Revenue per ton increased by 1% quarter-on-quarter.
- Premiumization reached a high of 44%.
- Net debt lowered by ₹1,009 crore year-on-year to ₹3,492 crore.
Strategic Initiatives and Expansions
The company is actively pursuing several strategic initiatives to drive future growth, including:
- Vadraj Cement Acquisition: Refurbishment activities are progressing, with trial runs expected by H1 FY’27 and full commissioning by Q3 FY’27.
- Eastern Expansion: Capacity expansion of 4 million tons per annum in the East is underway, with investments of less than ₹200 crores, and targeted completion between December 2025 and FY’27.
- Sustainability: Carbon emissions were reduced to 454 kg per ton of cement as of FY’25.
Operational Efficiency and Digitization
Nuvoco is focused on improving operational efficiency through digitization initiatives:
- Customer portal handles over 95% of total orders.
- Vendor portal streamlines onboarding and transactions.
- Artificial intelligence is being leveraged for predictive maintenance and heat loss prediction.
Demand and Outlook
While Q2 FY’26 witnessed moderate cement offtake growth due to monsoon and festive seasons, the company remains positive on demand in the second half of the year. Expectations are driven by:
- Increased execution in housing and infrastructure projects.
- Positive impact of the GST rate reduction.
- Lower interest rates.
Q&A Highlights
During the Q&A session, executives addressed questions related to pricing, expansion plans, and cost management:
- Pricing: The company passed on GST benefits to customers and expects to improve realization through geo-mix and premiumization.
- Expansion: Capacity expansion in the East aims to meet growing demand and utilize blended cement opportunities.
- Cost Management: The company is targeting cost savings through alternative raw materials, WHR efficiency, and lead distance reduction.
Source: BSE
