Mumbai: Shares of Nuvoco Vistas Corporation Ltd. climbed nearly 12% in early trade on Tuesday after the cement manufacturer reported strong financial results for the first quarter of FY27. The company posted double-digit growth in profit and revenue, supported by higher cement volumes, improved operating performance and lower freight costs.
The stock was trading at Rs 357.10 on the National Stock Exchange (NSE) at around 9:20 a.m., gaining more than 12% from its previous close. The rally reflected positive investor sentiment following the company’s better-than-expected quarterly performance.
The June quarter results highlighted steady demand across key markets, improved sales realisations and stable operating margins despite a challenging business environment. Investors will now closely monitor cement demand, infrastructure spending, pricing trends and input costs in the coming quarters to gauge whether the company can sustain its earnings momentum.
Profit rises 20% in June quarter
Nuvoco Vistas reported a consolidated net profit of Rs 160 crore for the quarter ended June 30, 2026, marking a 20% increase compared with Rs 133 crore reported in the corresponding quarter of the previous financial year.
The company’s revenue from operations rose 8.9% year-on-year to Rs 3,129 crore from Rs 2,873 crore. The increase was primarily driven by higher cement sales volumes and improved product realisations across its operating regions.
Operating performance also improved during the quarter. Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 9.6% to Rs 568 crore from Rs 519 crore a year earlier.
The EBITDA margin remained broadly stable at 18.2%, compared with 18.1% in the same quarter last year, indicating the company’s ability to maintain profitability despite cost pressures.
The latest performance also comes after the company reported a one-time loss of Rs 48 crore during the fourth quarter of FY26.
Higher cement volumes boost earnings
A key driver of the company’s improved financial performance was growth in cement sales.
During the June quarter, cement volumes increased 5% year-on-year to 5.3 million metric tonnes. The higher sales helped strengthen revenue while also improving operating leverage.
Another positive factor was the reduction in freight and forwarding expenses. These costs declined sequentially to Rs 838 crore from Rs 871 crore in the January-March quarter, providing additional support to the company’s profitability.
Lower logistics costs, coupled with steady demand, enabled the company to maintain healthy operating margins during the quarter.
Capacity expansion strengthens western India presence
Nuvoco Vistas also expanded its manufacturing footprint during the quarter by inaugurating a new grinding unit at its Limla Cement Plant.
The newly commissioned facility adds 2 million metric tonnes per annum of grinding capacity and strengthens the company’s presence in western India.
The additional capacity is expected to improve plant utilisation levels and support future earnings growth as construction activity and infrastructure spending continue to rise across the country.
The expansion also aligns with the company’s long-term strategy of increasing production capacity in high-growth markets.
Stock recovers after recent weakness
Tuesday’s rally helped Nuvoco Vistas recover part of the losses witnessed over the past week.
However, on a one-year basis, the stock remains under pressure. Over the past 12 months, Nuvoco Vistas shares have declined approximately 5.2%, compared with a 0.34% fall in the Nifty 500 index during the same period.
The stock has traded within a 52-week range of Rs 267.25 to Rs 477.50.
At the previous market close, the company’s market capitalisation stood at Rs 12,014.73 crore. The stock was trading at a price-to-earnings (P/E) ratio of 29.27.
Outlook
Nuvoco Vistas delivered a strong start to FY27 with healthy growth in revenue, profit and operating earnings. Improved cement volumes, stable margins and lower logistics costs helped support the company’s financial performance during the quarter.
Going forward, investors will watch infrastructure spending, housing demand, cement prices and raw material costs to assess whether the company can continue delivering consistent earnings growth in the remaining quarters of the financial year.
