Nuvoco Vistas (NUVOCO) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 volume reached 4.7 MMT, up 9% YoY; reported revenue was ₹2,789.97 crore, up 14%, and EBITDA was ₹411 crore, up 11%.

• Q2 consolidated PAT was ₹64.79 crore, up YoY but below ₹159.63 crore in Q1; H1 revenue and PAT rose YoY to ₹5,918.68 crore and ₹224.42 crore.

• Premiumization reached a record 45%, with trade mix at 75%; structural expansion includes the commissioned Surat grinding unit and a 35 MMTPA capacity target.

Financial highlights

• Consolidated Q2 revenue was ₹2,789.97 crore vs ₹2,457.57 crore YoY; H1 revenue was ₹5,918.68 crore vs ₹5,330.27 crore.

• Q2 EBITDA was ₹411 crore vs ₹371 crore YoY; consolidated Q2 PAT was ₹64.79 crore vs ₹36.43 crore YoY and ₹159.63 crore QoQ.

• Q2 cost inflation versus Q1 was INR 180–190/ton, led by power and fuel (~INR 90), raw materials (~INR 60) and packing bags (~INR 10).

• Energy cost rose to INR 1.59 per million kCal, or INR 1,080/ton, from INR 1.52 per million kCal and INR 1,005/ton in Q1.

Outlook and guidance

• Q3 energy cost is expected at INR 1.80 per million kCal, adding INR 70–80/ton; total Q3 cost inflation is forecast at INR 100–120/ton QoQ.

• October price increases of INR 20/ton are expected to offset Q3 cost inflation if they hold and post-Diwali demand supports pricing.

• Management expects ~8% all-India cement industry growth in H2 and 8–9% blended volume growth across North, West and East markets.

• Kutch Integrated Unit commissioning is planned in phases from Q3 FY27 to Q1 FY28; the 4 MMTPA East expansion is planned through FY28.

• Net debt is expected near the prior March level by year-end; leverage may remain 2–2.5x for four to six quarters before falling below 2x EBITDA as Vadraj scales.