Nuvoco Vistas Corporation (NUVOCO IN) – Q1FY27 Result Update – Pricing powers through cost inflation – BUY
Published on 14 Jul 2026
Nuvoco Vistas (NUVOCO) reported a strong operating performance in Q1FY27, driven by healthy pricing and transition towards domestic coal from pet coke, which more than offset higher operating costs. Blended NSR increased 6% QoQ, supported by price hikes across key markets, and a favourable geographical mix, while volumes grew 5% YoY despite logistics constraints. Operating costs remained elevated due to higher pet coke, PP bag and freight costs; however, realization gains coupled with cost optimisation initiatives led to EBITDA/t improving to INR1,063 (vs. PLe of INR959). Management expects fuel costs to remain broadly stable in Q2FY27, while lower PP bag costs should partly offset higher power costs. Management expects healthy infrastructure /housing led cement demand to support industry growth of 7-8% for FY27 while stable pricing and strict cost discipline to aid EBITDA/t. The Vadraj project and Eastern debottlenecking remain on track, with 2mtpa Surat grinding unit (already commissioned) and phased commissioning of the 3.5mtpa Kutch clinker project to drive volumes from H2FY27. The stock is trading at an EV of 6.5x FY28E EBITDA. Maintain ‘BUY’ with revised TP of Rs510 (earlier Rs471) valuing at same 9x EV of Mar’28E EBITDA.
