Nuvoco Vistas Corporation (NUVOCO IN) – Q2FY26 Result Update – Lower P&F offsets weak pricing
Published on 17 Jan 2026
Nuvoco Vistas (NUVOCO) reported an inline operating performance in Q3FY26, supported by decent volume growth of 7% YoY. Pure cement realizations declined 5.3% QoQ mainly due to weak prices in the eastern region. Raw material costs remained elevated despite access to better-priced slag under long-term contracts, while power and fuel costs declined 9% YoY, aided by higher share of domestic coal in the mix. Consequently, EBITDA/t increased 39% YoY to Rs763 (vs. PLe of Rs775). While the recent uptick in pet coke prices poses a risk to margins in Q4FY26, management expects overall fuel costs to remain largely stable, aided by higher domestic coal usage, while cement price hikes implemented in January are holding so far amid improving demand. The Vadraj acquisition remains on track, with commissioning expected by Q1FY28, taking Nuvoco’s total cement capacity to ~35mtpa. Maintain ‘BUY’ with revised TP of Rs443 (earlier Rs435) valuing at 9x EV of Sep’27E EBITDA.
