Nuvoco Vistas Corporation Ltd.

Nuvoco Vistas delivered a strong operating performance during Q1FY27 despite higher input costs. Better cement prices across key markets and an improved geographical sales mix helped blended net sales realization increase by around 6% sequentially. The company also benefited from a gradual shift towards domestic coal from imported pet coke, helping mitigate fuel cost pressures.

Although expenses remained elevated due to higher pet coke prices, freight charges and packaging costs, Nuvoco's pricing power and ongoing cost optimization initiatives helped improve profitability. EBITDA per tonne increased to ₹1,063, comfortably ahead of brokerage estimates, indicating that the company is successfully protecting margins even in a challenging cost environment.

Management expects cement demand to remain healthy during FY27, supported by government infrastructure spending and housing activity. The recently commissioned 2 MTPA Surat grinding unit, along with the phased commissioning of the 3.5 MTPA Kutch clinker project and debottlenecking initiatives in Eastern India, are expected to drive higher volumes from the second half of FY27, strengthening the company's market position.

Reflecting improved pricing assumptions and better earnings visibility, Prabhudas Lilladher increased its EBITDA estimates by 11% for FY27 and 8% for FY28. The brokerage expects Nuvoco to deliver an EBITDA CAGR of around 13% between FY26 and FY28 and has maintained its 'BUY' recommendation while raising the target price to ₹510, indicating confidence in the company's medium-term earnings and expansion strategy.