Nuvoco Vistas Corporation Limited — Q4 FY26 earnings call

Call held 15 Apr 2026

Management summary

Nuvoco Vistas delivered its strongest annual performance in FY26, achieving record volumes and EBITDA, supported by an expanded premiumization base. Q4 FY26 also saw record quarterly performance. The company is actively pursuing significant capacity expansion projects, including Vadraj Cement and East expansion. However, it faces near-term cost pressures from fuel, packing materials, and logistics, which it is addressing through price increases and efficiency initiatives, while maintaining a focus on profitability over aggressive market share gains.

Highlights

  • FY26 volume reached a historic high of 20.4 million tons.

  • FY26 EBITDA achieved a historic high of INR 1,881 crores.

  • Premiumization base expanded by 300 basis points year-on-year to 43% in FY26.

  • Q4 FY26 volume reached 6 million tons, a historic high for the quarter.

  • Q4 FY26 EBITDA reached a historic high of INR 590 crores.

  • Vadraj Cement project is progressing well and remains on schedule for phased commissioning between Q3 FY27 and Q1 FY28.

  • East expansion program to add 4 million tons of grinding capacity by FY28 is progressing well.

Concerns

  • Near-term headwinds from geopolitical uncertainty, rising fuel prices, currency volatility, and escalating raw material costs.

  • Packing bag costs increased by INR 100 per ton in April, following a INR 20 per ton impact in March.

  • Mineral gypsum import costs are expected to increase by INR 20 per ton.

  • Serious rake availability problems in March and April due to diversion to power plants, impacting clinker movement.

  • Net debt increased by INR 805 crores YoY to INR 4,445 crores in Q4 FY26, primarily due to acquisitions.

Key financials

2 periods

Q4 FY26

  • Volume
    6 million tons
  • EBITDA
    ₹590 Cr
  • Net Debt
    ₹4,445 Cr
    YoY +22.1% QoQ -7.7%

FY26

  • Volume
    20.4 million tons
  • EBITDA
    ₹1,881 Cr
  • Premiumization Base
    43%
    YoY +3%

What they filed

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

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue2,269 2,409 3,042 2,873 2,458 +8%2,701 +12%3,307 +9%3,129 +9%
EBITDA219 258 552 519 367 +68%384 +49%588 +7%568 +9%
Net profit-85 -61 166 133 36 +142%49 +180%141 −15%160 +20%
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.

Capital allocation

high confidence
  • Capex ₹900 Cr
    • Vadraj refurbishment (FY27) ₹627 Cr
    • Vadraj refurbishment (FY28) ₹728 Cr
    • East expansion (4 MT grinding capacity)

    Previously planned ₹700 Cr

    So in FY26 the year gone by, I had given an outlook of INR700 crores for capex, we ended with INR712 crores, a small INR10 crores increase. So more or less exactly the same way which we planned for the year. '27 and '28 will be INR900 crores for '27 and INR960 crores for '28. That's all largely coming out of Vadraj refurbishment, INR627 crores and INR728 crores.
  • Debt Net ₹4,445 Cr
    • Repayment Used proceeds from CCD issue to pay off commercial paper or bridge finance for Vadraj acquisition. ₹900 Cr
    So if you look at that, we started the year with INR3,640 crores and overall net debt we have ended with INR4,445 crores. So there's a INR900 crores increase that has happened. And this is primarily because of the Vadraj acquisition that has happened.
  • M&A Vadraj Cement Acquisition · Integrated · Consideration ₹[object Object] (undisclosed)

    Investment of INR 1,800 crores, funded by internal accruals and borrowing.

    So overall investment value for the Vadraj, if you recall in the previous calls, what we've talked about is INR1,800 crores.
  • M&A VEGL Acquisition · Integrated · Consideration ₹[object Object] (undisclosed)

    Investment of INR 200 crores.

    And on top of it, there is this INR200 crores that we had funded or made the investment for the VEGL acquisition.

Guidance & targets

Capacity

  • Vadraj Cement Project Commissioning Capacity · Q3 FY27 to Q1 FY28 · High confidence Phased commissioning between Q3 FY27 and Q1 FY28
    The clinker unit and grinding units are planned to be commissioned in phases between Q3 FY '27 and Q1 FY '28.

    — Bishnu Sharma

  • Viramgam Bulk Cement Terminal Commissioning Capacity · FY28 · High confidence Targeted for FY28
    It will serve as a strategic distribution hub to expand our reach across the Gujarat market with commissioning targeted for FY '28.

    — Bishnu Sharma

  • East Expansion Grinding Capacity Capacity · Phases through FY28 · High confidence 4 million tons per annum
    As for the project, our East expansion program of adding 4 million tons per annum of grinding capacity in phases through FY '28 is also progressing well.

    — Bishnu Sharma

Capex

  • FY27 Capex Capex · FY27 · High confidence INR 900 crores
    '27 and '28 will be INR900 crores for '27 and INR960 crores for '28.

    — Jayakumar Krishnaswamy

  • FY28 Capex Capex · FY28 · High confidence INR 960 crores

    — Jayakumar Krishnaswamy

Debt

  • Net Debt to EBITDA Ratio Debt · FY27 · High confidence 2x to 2.5x
    However, our goal has been to maintain that debt level to 2x to 2.5x EBITDA. And there, we will meet our numbers during the fiscal FY27.

    — Jayakumar Krishnaswamy

Fuel Mix

  • AFR Percentage (Company Level) Fuel Mix · FY27 · High confidence 13%+

    From 10% today

    FY27, our target is to get this AFR percentage from as a company from 10% to plus 13% is what we will look at.

    — Jayakumar Krishnaswamy

  • Petcoke Consumption (East) Fuel Mix · Medium confidence Reduce by 300-400 bps
    East is going to be overall reduction in petcoke by about 300 to 400 basis points, supplemented by increasing use of Churcha coal, coal waste or get it from Eastern collieries.

    — Jayakumar Krishnaswamy

  • Petcoke Consumption (North - Chittor/Nimbol) Fuel Mix · Medium confidence 45%

    From 50% today

    So technically speaking, in Northern plant, our petcoke consumption is 50%, we're trying to come to 45%, which with the efforts of our manufacturing team, we will be able to certainly reduce by 200 to 300 basis points.

    — Jayakumar Krishnaswamy

Volume

  • Industry Volume Growth Volume · FY27 · Medium confidence 7% to 9%
    I'm still looking positive for this industry to grow anywhere between 7% to 9% in the coming year as well.

    — Jayakumar Krishnaswamy

  • Nuvoco Volume Growth Volume · FY27 · High confidence 7% to 9%
    So we are targeting to grow anywhere between 7% to 9%, in line with the industry in the coming year as well.

    — Jayakumar Krishnaswamy

Cost

  • Blended Fuel Cost Cost · Q1 FY27 · High confidence INR 1.51 to INR 1.55 per million kcal

    From INR 1.44 per million kcal today

    So we are foreseeing a number for fuel cost in Q1, anywhere between INR1.51 to INR1.55, so we will also keep on altering the mix to assume that we get churcha coal or Eastern collieries coal or increase or decrease of AFR. So that's how we should have a range of close to INR1.51 to INR1.55 would be the number I foresee for Q1.

    — Jayakumar Krishnaswamy

What to watch in Q1 FY27

East expansion CTO approval and commissioning

Next 2-3 months for Jajpur, end of year for Arasmeta.
Current CTO pending for Jojobera and Panagarh; Jajpur and Arasmeta later.
Target CTO approval and announcement of completion for Jojobera/Panagarh.

Why it matters

Key to unlocking additional capacity and achieving growth targets, impacting future revenue and market share.

So certainly, we should be able to once the CTO comes we should be able to make an announcement on completion of this expansion.

Risks & concerns

  • Packing bag cost increase and availability

    high

    Granule prices shot up from INR 99 to INR 155 per kilo, resulting in an INR 20 per ton impact in March and a projected INR 100 per ton increase in April. Overall granule availability is reduced, making mitigation difficult.

    Management acknowledged

  • Rake availability issues and logistics disruption

    high

    Serious problems with rake availability in March and April due to diversion to power plants, impacting clinker movement and forcing reliance on road transport, which is expected to continue until monsoon.

    Management acknowledged

  • Overall cost inflation

    high

    Total cost inflation of close to INR 200 per ton is expected in Q1 FY27 from various factors like fuel, diesel, bags, and gypsum, creating a gap that needs to be covered by price increases.

    Management acknowledged

  • Near-term headwinds (geopolitical, fuel, currency, raw material costs)

    medium

    Geopolitical uncertainty, rising fuel prices, currency volatility, and escalation in raw material costs (particularly packing materials) could exert pressure on margins in the next 1-2 quarters.

    Management acknowledged

  • Mineral gypsum import cost increase

    medium

    Expected INR 20 per ton increase in mineral gypsum import costs due to supply line disruptions from Oman.

    Management acknowledged

Q&A highlights

8 direct
East expansion timeline delays and CTO approval Direct
The timelines we had mentioned was in end of FY '26 or Q1 FY '27, we will commission Jojobera, Panagarh and then subsequently, Jajpur and last would be Arasmeta... So certainly, we should be able to once the CTO comes we should be able to make an announcement on completion of this expansion.

Clarifies the revised timelines for East expansion projects and links completion to pending CTO approvals, indicating potential delays from original plans.

Asked by Siddharth Mehrotra

Fuel cost outlook for Q1 and Q2 FY27 and price increases Direct
So we are foreseeing a number for fuel cost in Q1, anywhere between INR1.51 to INR1.55... But all the shipments which are currently booking, which should come around July, August, which will have the impact for Q2, there I guess, there will be a further increase in blended cost for the company.

Provides specific Q1 FY27 blended fuel cost guidance and signals further cost increases for Q2 FY27, highlighting ongoing cost pressures.

Asked by Siddharth Mehrotra

Impact of packing bag and mineral gypsum costs Direct
The granule prices in the market, which was at INR99 per kilo, which was in February, over multiple phases have shot up to INR155 per kilo... So April, we're looking at INR100 per ton increase in packing bag costs... close to about INR20 per ton increase because of mineral gypsum import costs.

Quantifies significant cost increases for key raw materials (packing bags and mineral gypsum) impacting Q1 FY27, indicating pressure on margins.

Asked by Navin Sahadeo

Sustainability of recent price hikes Direct
I am fairly confident that the price hikes which we have taken will stay put in the near-term, and hopefully, further cost inflation doesn't happen, then I am confident we can stabilize with the current prices. But I certainly feel that if further cost inflation happens, I guess we will have to find a way to pass on the cost inflation down.

Management expresses confidence in the stickiness of recent price hikes but acknowledges the need for further increases if cost inflation continues, indicating a proactive stance on margin protection.

Asked by Navin Sahadeo

Net debt increase in Q4 FY26 Direct
So if you look at that, we started the year with INR3,640 crores and overall net debt we have ended with INR4,445 crores. So there's a INR900 crores increase that has happened. And this is primarily because of the Vadraj acquisition that has happened.

Explains the reason for the increase in net debt during Q4 FY26, attributing it to the funding of the Vadraj acquisition, clarifying a deviation from typical debt reduction trends.

Asked by Tejas Pradhan

Guidance on debt and capex for FY27 Direct
27 and '28 will be INR900 crores for '27 and INR960 crores for '28... our goal has been to maintain that debt level to 2x to 2.5x EBITDA. And there, we will meet our numbers during the fiscal FY27.

Reconfirms specific capex plans for FY27 and FY28 and reiterates the commitment to maintaining a healthy net debt to EBITDA ratio by FY27, providing clarity on future capital allocation.

Asked by Gaurav Goel

Strategy on market share vs. profitability Direct
Certainly, I think we will not drop price to increase market share. So I think our focus is profitability, Nuvoco will have to find as a company, we do a good balancing act between ensuring profitability and also get growth. So we will not kind of buy growth by throwing money.

Clarifies the company's strategic priority on profitability and disciplined growth, indicating they will not engage in aggressive price wars for market share.

Asked by Girija Ray

Demand outlook for April and FY27 Direct
I'm still looking positive for this industry to grow anywhere between 7% to 9% in the coming year as well... So we are targeting to grow anywhere between 7% to 9%, in line with the industry in the coming year as well.

Provides a positive outlook for industry demand growth in FY27 (7-9%) and confirms Nuvoco's target to match this growth, offering insights into future volume expectations.

Asked by Pinakin

3 min read 6 chapters

Detailed narrative

FY26 and Q4 FY26 Performance Highlights

Nuvoco Vistas achieved its strongest annual performance in FY26, recording the highest volume of 20.4 million tons and an EBITDA of INR 1,881 crores in company history. The premiumization base expanded by 300 basis points year-on-year, reaching 43% for the fiscal year. Q4 FY26 also marked a historic high with 6 million tons in volume and INR 590 crores in quarterly EBITDA, demonstrating strong operational execution despite challenging market conditions.

Capacity Expansion and Project Progress

The Vadraj Cement project is progressing on schedule, with clinker and grinding units planned for phased commissioning between Q3 FY27 and Q1 FY28. Key equipment deliveries are complete for the Surat grinding unit, and trials have commenced. The East expansion program, aiming to add 4 million tons of grinding capacity in phases through FY28, is also well underway, with debottlenecking in Jojobera and Panagarh nearing completion, awaiting CTO approval. A new bulk cement terminal at Viramgam, Gujarat, with 1.5 million tons per annum handling capacity, is targeted for commissioning by FY28.

Cost Headwinds and Mitigation Strategies

The company faces significant cost pressures from rising fuel prices, packing materials, and mineral gypsum. Blended fuel costs are projected to increase from INR 1.44 per million kcal in Q4 FY26 to INR 1.51-1.55 per million kcal in Q1 FY27, with further increases expected in Q2. Packing bag costs increased by INR 100 per ton in April, and mineral gypsum import costs are expected to rise by INR 20 per ton. Management is implementing proactive measures, including fuel mix optimization (targeting AFR of 13%+ for FY27 and reducing petcoke consumption in East by 300-400 bps and in North to 45%) and strengthening supply chain efficiencies to mitigate these impacts.

Pricing Strategy and Market Outlook

Nuvoco Vistas has implemented price increases of INR 8-12 per bag in trade and INR 10-15 per bag in non-trade channels across its markets to offset cost inflation. Management expressed confidence in the sustainability of these price hikes in the near term, indicating a willingness to implement further increases if cost pressures persist. The company projects industry volume growth of 7-9% for FY27, and aims to grow its own volumes in line with this market trend, prioritizing profitability over aggressive market share gains.

Debt Management and Capital Expenditure Plans

Net debt for Q4 FY26 stood at INR 4,445 crores, a reduction from INR 4,817 crores in Q3 FY26, but an increase from INR 3,640 crores in Q4 FY25, primarily due to the Vadraj and VEGL acquisitions totaling INR 2,000 crores. The company utilized INR 900 crores from a CCD issue to manage acquisition-related financing. Capex for FY26 was INR 712 crores, slightly above the planned INR 700 crores. Future capex is projected at INR 900 crores for FY27 and INR 960 crores for FY28, with a significant portion allocated to Vadraj refurbishment. The company aims to maintain its net debt to EBITDA ratio between 2x and 2.5x by FY27.

Logistics and Operational Challenges

The company experienced significant logistics challenges in March and April due to severe rake availability issues, as railway rakes were diverted to power plants. This impacted clinker movement and necessitated increased reliance on road transport for grinding units. Management anticipates these problems to persist until the monsoon season, highlighting an ongoing operational hurdle that requires continuous mitigation efforts. Despite these challenges, the company achieved a historic high quarterly volume of 6 million tons in Q4 FY26.

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

More Construction Materials earnings calls