Nuvoco Vistas Corporation (NUVOCO IN) – Q2FY26 Result Update – Premiumization to negate rising costs in H2 – Accumulate
Published on 17 Oct 2025
Nuvoco is transitioning from a consolidation phase into a growth phase, having completed the Vadraj acquisition and guided a targeted ~4mtpa eastern expansion through equipment upgrades, process modifications, and debottlenecking, which will take total capacity to ~35mtpa by end FY27. These projects will also strengthen Nuvoco’s position in the East while providing access to newer markets in the Western and Central regions, driving regional market share gains and supporting product premiumization. Overall, Nuvoco offers a turnaround expansion story with improving financial metrics, scalable capacity, and operating leverage that could drive strong earnings recovery over the next two years. However, timely execution remains the key now. We cut our EBITDA estimates by 1% on flat pricing assumptions in H2 and expect it to deliver EBITDA CAGR of 20% over FY25-28E. The stock is trading at EV of 9.3x/7.4x FY27E/FY28E EBITDA. Maintain ‘Accumulate’ with revised TP of Rs459 (earlier Rs464) valuing at 9x EV of Sep’27E EBITDA.
