Concall AI

Nuvoco Vistas Corporation Limited — Q3 FY26 earnings call

Call held 16 Jan 2026

Management summary

Nuvoco Vistas reported robust Q3 FY26 results, driven by strong volume growth and significant EBITDA expansion. The company achieved its highest-ever Q3 volumes and maintained a historic high in premium product share. Strategic cost management, particularly in fuel and logistics, contributed to improved profitability. The Vadraj expansion and other capacity additions are on track, supported by disciplined debt management and ongoing digitization efforts.

Highlights

Volumes grew 7% year-on-year to 5 million tons, the highest Q3 volumes ever recorded.
December saw strong volume growth of 20%.
EBITDA for the quarter rose approximately 50% year-on-year to INR 386 crores.
Premium products sustained their share of trade volumes at a historic high of 44% in Q3 FY26.
For the 9 months of FY26, premiumization stood at 43%, reflecting a steady uplift of nearly 300 basis points over the FY25 baseline of 40%.
Achieved the lowest blended fuel cost in the last 17 quarters at 1.41 per Mcal.
Raised INR 600 crores through CCD issuances to replace short-term bridge financing.
Debt level at December '25 was INR 4,217 crores, including INR 600 crores from CCD.

Key financials

3 periods

Headline

Volumes
5 million tons
YoY +7%
EBITDA
₹386 Cr
YoY +50%
Blended Fuel Cost
1.41 per Mcal
Debt Level
₹4,217 Cr
Logistics Lead Distance
326 kilometers
Rail Share
37%
Blended Power Cost
335 Rs per ton

Q3

Premiumization Share
44%

9M

Premiumization Share
43%

What they filed

Q1 FY27: revenue up 8.9%, net profit up 20.3% against the same quarter last year.

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	2,269	2,409	3,042	2,873	2,458 +8%	2,701 +12%	3,307 +9%	3,129 +9%
Expenses	2,050	2,151	2,491	2,354	2,091	2,318	2,719	2,560
EBITDA	219	258	552	519	367 +68%	384 +49%	588 +7%	568 +9%
Margin	10%	11%	18%	18%	15%	14%	18%	18%
Other income	10	0	4	15	4	3	-46	4
Interest	132	126	113	117	102	99	81	70
Depreciation	215	217	220	215	218	223	228	226
Profit before tax	-118	-85	224	202	51 +143%	65 +176%	233 +4%	276 +37%
Tax rate	-28%	-28%	26%	34%	29%	24%	40%	42%
Net profit	-85	-61	166	133	36 +142%	49 +180%	141 −15%	160 +20%
EPS	-2.38	-1.72	4.63	3.73	1.02	1.37	3.94	4.47

How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Guidance & targets

Capex

Overall CAPEX Capex · FY26 · High confidence INR 620-670 crores

So, for the full year, the CAPEX outlook is coming anywhere between INR 620 crores to 670 crores.

— Jayakumar Krishnaswamy, Managing Director
Overall CAPEX Capex · FY27 · High confidence INR 1,000-1,100 crores

FY'27 will be Rs. 1,000 crores to Rs. 1,100 crores.

— Jayakumar Krishnaswamy, Managing Director
Overall CAPEX Capex · FY28 · High confidence INR 650-700 crores

FY'28 will be Rs. 650 to Rs. 700 crores.

— Jayakumar Krishnaswamy, Managing Director

Capacity

Vadraj Clinker & Grinding Units Operationalization Capacity · Q3 FY27 to Q1 FY28 · High confidence Phased from Q3 FY27 to Q1 FY28

The refurbishment and project execution remains on schedule, with operationalization of clinker units and grinding units planned in phases from Q3 FY'27 to Q1 FY'28.

— Bishnu Sharma, Head (Investor Relations)
Surat Grinding Unit & Kutch Clinker Unit Operationalization Capacity · FY27 · High confidence During FY27

Accordingly, during FY'27, Surat grinding unit and Kutch clinker unit will become operational

— Bishnu Sharma, Head (Investor Relations)
Kutch Grinding Unit Commissioning Capacity · H1 FY28 · High confidence H1 FY28

while in H1 FY'28, Kutch grinding unit will get commissioned.

— Bishnu Sharma, Head (Investor Relations)
East Expansion Capacity · Ongoing · High confidence 4 million tons per annum

The East expansion project of 4 million tons per annum in phases also remains on target.

— Bishnu Sharma, Head (Investor Relations)
Total Cement Capacity Capacity · Post Vadraj & East expansion · High confidence 35 million tons per annum

With the East expansion and commissioning of Vadraj plant, the Company's total cement capacity will scale up to 35 million tons per annum.

— Bishnu Sharma, Head (Investor Relations)

Premiumization

Increase in Premiumization Share Premiumization · Next 2-3 years (annually) · High confidence 200 basis points

We are really looking at increasing this number certainly at 200 basis points every year in the next 2 to 3 years.

— Jayakumar Krishnaswamy, Managing Director

Volume

Q4 FY26 Industry Demand Growth Volume · Q4 FY26 · Medium confidence 7-8%

If you remember my previous call in Q3 I mentioned that the demand for industry should be anywhere between 7% to 8% kind of a number. So, we hope to kind of hit that number or cross that number certainly going forward.

— Jayakumar Krishnaswamy, Managing Director
Overall Volume Growth CAGR Volume · Next two years · High confidence 10%

Certainly in Q4 our target should be what you mentioned and next year and beyond we are targeting a CAGR of 10% volume growth at least for next two years if not more.

— Jayakumar Krishnaswamy, Managing Director
Vadraj Annualized Sales in Gujarat (Exit FY26) Volume · FY26 exit · High confidence 1 million ton

1 million in FY'26, which is we will exit the year at a million kind of annualized million sale in Gujarat.

— Jayakumar Krishnaswamy, Managing Director
Vadraj Annualized Sales in Gujarat (End FY27) Volume · FY27 end · High confidence 2 million tons

Next year, by end of the year, we should get into 2 million sale

— Jayakumar Krishnaswamy, Managing Director
Vadraj Annualized Sales in Gujarat (FY28) Volume · FY28 · High confidence 3 million tons

and FY'28 will be 3 million

— Jayakumar Krishnaswamy, Managing Director
Vadraj Annualized Sales in Gujarat (FY29) Volume · FY29 · High confidence 4 million tons

and FY'29 will be 4 million.

— Jayakumar Krishnaswamy, Managing Director

Cost Reduction

AFR Usage Cost Reduction · Q1 FY27 · Medium confidence 13-15%

I guess some ramp up time will take in the next three months by Q1 FY'27 we should be able to get this number to anywhere between 13%-15% at a Company level.

— Jayakumar Krishnaswamy, Managing Director
Cost Saving Agenda Cost Reduction · Next 2-3 years · Medium confidence Next two to three years cost-saving agenda

This is our annual operating plan time I guess when we meet in 4Q I will be able to share the next two to three years' cost saving agenda for the company.

— Jayakumar Krishnaswamy, Managing Director

Green Power

WHR De-bottlenecking Green Power · Next 6-8 months · High confidence 3.5 megawatts

Our plan is to de-bottleneck all these WHR to get another 3.5 megawatts in the next 6-8 months

— Jayakumar Krishnaswamy, Managing Director
Hybrid Power Plant (Rajasthan) Green Power · Next 12-18 months · High confidence 50 megawatt

that should be operational in the next 12 months-18 months which should be a big boost to power cost in Nimbol plant and that's a 50 megawatt hybrid model

— Jayakumar Krishnaswamy, Managing Director

Debt

Comfortable Debt Level Debt · Long-term · High confidence INR 3,500-4,000 crores

I mentioned in our calls, almost all times I mentioned this particular point in the call, stating that as a Company, we are comfortable operating the Company with the debt levels of INR 3,500 to INR 4,000 crores.

— Jayakumar Krishnaswamy, Managing Director
EBITDA to Debt Level Debt · Long-term · Medium confidence Around INR 2-ish

So, we are targeting EBITDA to debt level around INR 2-ish at the time as well.

— Jayakumar Krishnaswamy, Managing Director

Risks & concerns

Pet Coke Price Increase
medium

Pet coke prices increased in December, but management believes cost reduction initiatives (AFR, domestic coal, reduced consumption) will largely offset the impact.

Management acknowledged
Capacity Utilization in North
medium

The North market is expected to operate at near capacity utilization in Q4, leading to a tight scenario, which Vadraj capacity is intended to address in the future.

Management acknowledged
Freight Cost Volatility
medium

Analyst noted past volatility in freight costs; management explained it was due to factors like removal of freight subsidies and changes in operating models, now mitigated by focus on home markets, railway sidings, and GPS implementation.

Analyst acknowledged
Vadraj Startup Challenges
low

Management acknowledges initial startup challenges for a new plant like Vadraj but expects fuel and energy costs to be similar to existing Nimbol and Chittor plants in steady state.

Management acknowledged

Areas of evasion (1)

CCD conversion price and implied interest

Q&A highlights

1 direct, 1 evasive

CCD Conversion Terms and Implied Interest Evasive

So, what we will do is to share this, this should get into a long discussion. So, may I request you to reach out to us, come over to our office or let's set up a call. We'll explain all of it in complete detail because obviously all of it is in the public domain.

Management deflected a direct question about the implied interest rate and conversion price of the CCDs, asking the analyst to take it offline, which reduces transparency on a key financing instrument.

Asked by Amit Murarka

Vadraj Rail Line Last Mile Connectivity Direct

The railway survey is already completed between Naliya and to a place called Vagot. Vagot is a station which is about 4.5 kilometers from our plant. So, the railway has started working on that and I think the land acquisition that is going to be done by railways. I think their initial project report says that they should be ready completing this up to this Vagot station by end this year, December, January they should be able to complete.

The question provided a detailed update on a critical infrastructure project for the Vadraj plant, including timelines and potential challenges, which is vital for capacity ramp-up.

Asked by Satyadeep Jain

Sustainability of January Price Hikes Partial

So, I will wait and watch going forward whether we are able to sustain these prices. So, my gut sense is the prices had fallen below the GST levels because we had passed on all the benefits of GST and we continued with the quarter but with a little bit of a cost inflation we had to do some adjustment and that is how we took this correction.

The analyst questioned the confidence in January pricing given December's strong volumes but weak pricing, and management acknowledged it's early to confirm sustainability, highlighting market dynamics and cost inflation as drivers for the hike.

Asked by Navin Sahadeo

3 min read 7 chapters

Detailed narrative

Q3 FY26 Performance Highlights

Nuvoco Vistas reported a strong Q3 FY26, with volumes growing 7% year-on-year to 5 million tons, marking the highest Q3 volumes in the company's history. December alone saw a robust 20% volume growth. EBITDA for the quarter increased by approximately 50% year-on-year to INR 386 crores, despite price moderation. The company's premium products maintained a historic high share of 44% of trade volumes, contributing to overall performance.

Cost Management and Fuel Strategy

The company achieved its lowest blended fuel cost in 17 quarters at 1.41 per Mcal, despite recent upticks in pet coke prices. This was attributed to increased use of Alternative Fuel and Raw Materials (AFR), domestic open market coal, and reduced pet coke consumption (down to 41% from 48% YoY). Management aims to further improve AFR usage to 13-15% by Q1 FY27 and expects to offset potential pet coke price increases through these initiatives.

Vadraj Project Update and Capacity Expansion

The Vadraj Cement Plant refurbishment and project execution remain on schedule, with clinker and grinding units planned for phased operationalization from Q3 FY27 to Q1 FY28. The Surat grinding unit and Kutch clinker unit are expected to be operational in FY27, with the Kutch grinding unit commissioned in H1 FY28. The East expansion project of 4 million tons per annum is also on target, which will scale the company's total cement capacity to 35 million tons per annum post completion. Vadraj is projected to contribute 1 million tons in Gujarat by FY26 exit, scaling to 4 million tons by FY29.

Debt Management and Capital Allocation

During the quarter, Nuvoco Vistas raised INR 600 crores through Compulsorily Convertible Debenture (CCD) issuances, which were used to replace an equivalent amount of short-term bridge financing. The company plans to complete an additional INR 600 crores CCD issuances soon. The debt level at December '25 stood at INR 4,217 crores. Management expressed comfort operating with debt levels of INR 3,500 to INR 4,000 crores long-term, targeting an EBITDA to debt ratio of around 2-ish.

Premiumization and Market Strategy

Premium products continued to be a key focus, with their share reaching a historic high of 44% in Q3 FY26 and 43% for the nine months of FY26, a 300 basis point increase from FY25. The company aims to further increase this premiumization share by 200 basis points annually over the next 2-3 years. This strategy is expected to boost realization by INR 150-200 per ton of cement sold, enhancing overall profitability.

Logistics and Green Power Initiatives

Logistics costs saw efficiency gains, with the lead distance reducing to 326 kilometers in Q3 from 331 kilometers in Q2. This was driven by GPS implementation, increased rail share (37% in Q3), and focus on home markets. In green power, the company plans to de-bottleneck WHR to add another 3.5 megawatts in the next 6-8 months. A 50-megawatt hybrid solar-plus-wind power plant in Rajasthan is expected to be operational in the next 12-18 months, significantly boosting green power mix.

Outlook and Future Growth

Management is bullish on demand, expecting industry growth of 7-8% in Q4 FY26 and targeting a CAGR of 10% volume growth for Nuvoco Vistas over the next two years. Total CAPEX is projected at INR 620-670 crores for FY26, INR 1,000-1,100 crores for FY27, and INR 650-700 crores for FY28, primarily for Vadraj and other routine expansions. The company is also exploring brownfield and greenfield expansion opportunities in the North and Gulbarga regions for future growth beyond FY28.

This is an AI-generated summary of a publicly available earnings call transcript.

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