Nuvoco Vistas Q1 FY27 Results: Net profit jumps 20% to ₹160 crore, revenue up 9% to ₹3,129 crore; stock hits 8-month high

Nuvoco Vistas Corp. Ltd., the building materials arm of the Nirma Group, reported its Q1 FY27 results on Monday, July 13, with growth across both revenue and profit alongside a jump in EBITDA on the back of stronger volumes and cost discipline.

Revenue for the quarter stood at ₹3,128.71 crore, up 8.9% year-on-year from ₹2,872.70 crore. Net profit rose 19.87% from a year ago to ₹159.63 crore, against ₹133.16 crore in Q1 FY26.

Consolidated cement sales volume grew 5% year-on-year to 5.3 million tonnes, which the company attributed to resilient execution despite a challenging operating environment. EBITDA grew 7% year-on-year, which Nuvoco called its strongest first-quarter EBITDA performance on record, helped by continued cost discipline and operational efficiencies.

On the growth front, Nuvoco inaugurated its Grinding Unit at Limla, Surat, ahead of schedule during the quarter. The company said underlying cement demand strengthened through the June quarter, though it stayed temporarily muted in some states because of election-related factors, while the Centre's capital expenditure grew 13% year-on-year in Q1 FY27, up to May 2026, with ongoing infrastructure and housing activity continuing to support demand.

Nuvoco Vistas Q1 FY27 Results: Management Commentary

Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas, said: "We have had a strong start to the year, delivering higher business performance despite macro headwinds, particularly emanating from geopolitical tensions. The Company achieved strong YoY growth in both EBITDA and PAT. The performance reflects resilient execution, supported by continued focus on cost discipline and operational efficiencies. On the growth agenda, the company achieved a major milestone of inaugurating the Grinding Unit at Limla, Surat, ahead of schedule, which reflects the strength of our project execution capabilities and the commitment of our teams on the ground."

Nuvoco Vistas Q1 FY27 Results: Kotak Neo Research View

Kotak Neo Research has kept a 'BUY' rating on the stock with a fair value of ₹440, valuing it at 8x EV/EBITDA on a September 2028 basis over a 12-month holding period. The note was pegged to a reference price of ₹341, implying upside of about 29% at the time; the stock has since moved well past that level, closing in on the fair value after the post-results rally.

On the numbers, the print ran ahead of its estimates. Blended realisations improved 6.3% quarter-on-quarter and 4% year-on-year, beating its forecast by 2.2%, while Q1 FY27 exit prices ran about ₹320 a tonne above the Q4 FY26 exit level. EBITDA per tonne came in at ₹1,064, up around ₹85 sequentially, well ahead of its own ₹936 estimate.

The note flagged the sequential realisation gains, the elevated exit prices and the jump in EBITDA per tonne as positives, and said it expects leverage to decline gradually through FY26-29E. On the other side, it pointed to costs rising 5.8% quarter-on-quarter and 3.9% year-on-year, mainly on higher freight.

Looking ahead, Kotak Neo Research expects margins to soften and bottom out in Q2 FY27E, in line with spot cement price trends and the seasonal impact of plant shutdowns. It expects capacity utilisation to stay above the industry average, and said projects at Vadraj in the west and the debottlenecking initiative in the east remain on track. It raised its EBITDA estimates for FY27, FY28 and FY29 by 5.4%, 1.7% and 3.2% respectively on better realisations and volumes, projecting EBITDA per tonne of ₹894, ₹926 and ₹949 across the three years. It said reducing regional concentration and compelling valuations make the risk-reward profile attractive at current levels.

Nuvoco Vistas Share Price

Nuvoco Vistas shares rose as much as 17% on Wednesday, July 15, to an over eight-month high of ₹398 on the NSE. The stock has gained about 25% over the last two trading sessions since the June-quarter results were announced.

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