NUVOCO - Nuvoco Vistas

📊 NSE: NUVOCO 🏢 Cement - North India 📅 Last Updated: 12/14/2025 10:39

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for FY25 was INR 10,315 Cr, representing a 3.6% decline from INR 10,708 Cr in FY24. However, Q1 FY26 showed a recovery with revenue of INR 2,873 Cr, up 9% YoY.

Geographic Revenue Split

The company operates across 22 states. In Q2 FY26, the North region experienced 'handsome growth' while the East region remained 'subdued'. Specific percentage splits per region were not disclosed.

Profitability Margins

PAT margin for FY25 was 0.2% (INR 22 Cr), down from 1.4% (INR 147 Cr) in FY24. EBITDA per tonne significantly improved by 42.5% YoY to INR 1,023 in Q1 FY26 from INR 718 in Q1 FY25.

EBITDA Margin

EBITDA per tonne was INR 1,023 in Q1 FY26. The Net Debt to EBITDA ratio rose to 2.65x in FY25 from 2.5x in FY24 due to moderated profitability.

Capital Expenditure

Planned investment of INR 1,200-1,500 Cr over the next 15-18 months to operationalize Vadraj Cement assets. Additional brownfield expansion is planned at Chittor and a greenfield project in Gulbarga.

Credit Rating & Borrowing

Crisil AA (Rating Watch with Developing Implications) for NCDs and Crisil A1+ for Commercial Paper. Net debt stood at INR 3,640 Cr as of March 31, 2025.

⚙️ Operational Drivers

Raw Materials

Slag (secured via long-term contracts), Petcoke (fuel source), and Limestone (sourced from captive mines in Nagaur, Gulbarga, and Guntur). Raw material costs remained flat QoQ in Q2 FY26.

Import Sources

Not specifically disclosed, but the company noted that geopolitical situations impact petcoke costs, implying international sourcing.

Capacity Expansion

Current capacity includes a 1.2 MTPA increase from debottlenecking. Planned expansion includes 6 MTPA from the Vadraj acquisition (4.5 MTPA to be operational by Q3 FY27) and a brownfield project at Chittor.

Raw Material Costs

Raw material costs remained flat QoQ in Q2 FY26. The company leverages long-term contracts for slag to maintain cost competitiveness.

Manufacturing Efficiency

Capacity utilization is maintained at a healthy level of approximately 75%.

Logistics & Distribution

Distribution costs declined QoQ in Q2 FY26, aided by operational efficiency and a partial waiver of the Busy Season Surcharge.

📈 Strategic Growth

Expected Growth Rate

7-8%

Growth Strategy

Growth will be driven by the operationalization of the 6 MTPA Vadraj Cement assets (4.5 MTPA by Q3 FY27) and brownfield expansion at Chittor. The company is also focusing on premiumization, aiming for a 25% increase in Concreto Uno and Duraguard Microfiber volumes in Q3 FY26. Geographic expansion into North and West markets is a key priority.

Products & Services

Cement (Concreto, Duraguard, Double Bull, Nirmax, Infracem), Ready-Mix Concrete (RMX), and Modern Building Materials (MBM).

Brand Portfolio

Concreto, Duraguard, Double Bull, Nirmax, Infracem, Concreto Uno, Duraguard Microfiber.

New Products/Services

Concreto Uno (Bihar) and Duraguard Microfiber (Rajasthan/MP) are key new premium products. The company targets a 25% volume increase for these in Q3 FY26.

Market Expansion

Expanding into North and West India through the Vadraj acquisition and Chittor brownfield project. Target for Vadraj operationalization is FY27.

Market Share & Ranking

Leading player in the Eastern region of India; strengthening position in North and West.

Strategic Alliances

Nuvoco is a key part of the Nirma Group, providing healthy financial flexibility.

🌍 External Factors

Industry Trends

The industry is growing at 2-4% (Q2 FY26) with an expected pickup to 7-8% in H2. Trends include consolidation, premiumization (44% mix), and a focus on sustainability (454 kg CO2/ton).

Competitive Landscape

Competes with other major cement players; matching industry growth of 7-8% is the near-term target.

Competitive Moat

Strong brand equity in 'Concreto' and 'Duraguard' (44% premium mix), market leadership in East India, and financial backing from the Nirma Group. Cost advantages from captive mines and long-term slag contracts.