Nuvoco Vistas shares jump 10% on record Q1 EBITDA beat
Nuvoco Vistas shares surged 10% after a record first-quarter EBITDA beat driven by strong pricing, prompting analysts to forecast up to 47% further upside.
Nuvoco Vistas shares rose 10% after the Indian cement maker posted a 20% increase in first-quarter net profit to Rs 160 crore. Revenue grew 9% to Rs 3,129 crore, supported by a 5% rise in cement volumes. The company recorded its strongest-ever first-quarter EBITDA at Rs 570 crore, representing a 7% year-on-year increase.
The earnings beat was largely driven by pricing power rather than volume surprises. Blended realisations improved 7% sequentially, coming in 4% above Nomura's forecasts. Unitary EBITDA rose over Rs 90 per tonne sequentially to reach Rs 1,072 per tonne. "The geopolitical uncertainty that has persisted over recent quarters has tested supply chains and cost structures across the industry. Our teams have managed this well, maintaining strong cost discipline while preserving operational performance," the company stated.
Underlying cement demand improved during the June quarter, though executives noted temporary softness in some Indian states tied to local elections. Broader demand was anchored by a 13% year-on-year increase in central government capital expenditure up to May 2026. Ongoing infrastructure and housing projects provided a stable baseline for consumption.
Analysts see further gains
Nomura maintained its 'Buy' rating with a target price of Rs 400, implying 17% upside. The brokerage noted that Nuvoco's EBITDA exceeded its own estimates by 22% and the Bloomberg consensus by 16%. Grey cement volumes of 5.3 million tonnes were broadly in line, but better pricing across key markets drove the outperformance.
Choice Institutional Equities struck a more bullish tone, retaining its 'Buy' rating and raising its target price to Rs 500 for a 47% upside. The brokerage highlighted Nuvoco's resilient pricing, cost management and capacity growth pipeline. The recently commissioned Limla Cement Plant strengthens the company's footprint in Western India.
Looking ahead, Choice cautioned that cost inflation could surface in the second quarter but revised its estimate down to Rs 100 per tonne from Rs 200. The brokerage expects higher alternative fuel usage and fuel optimisation to cushion any margin pressures. "Going forward, we remain watchful of evolving geopolitical developments and will continue to pursue prudent procurement, cost optimisation and ongoing improvements in supply chain efficiency," the company said.
