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Informist, Saturday, Jul. 11, 2026

By Devanshu Singla

MUMBAI - Nuvoco Vistas Corp. Ltd. is expected to report an on-year decline in its net profit for the June quarter due to elevated fuel, packaging, and operating costs, according to brokerages. However, despite a seasonally weak quarter, healthy demand from individual housing and infrastructure segments, along with stable pricing, are expected to support revenue growth.

The cement manufacturer is expected to report a consolidated net profit of INR 1.2 billion for the June quarter, according to the average of estimates from five brokerages. This will be down nearly 13% on year and 39% on quarter. The company's consolidated net sales for the quarter are expected to be over INR 30 billion, up 6.4% on year but down 7.5% on quarter, according to the estimates.

The highest estimate for the company's net profit is INR 1.5 billion from Kotak Securities Ltd. and the lowest estimate INR 700 million from Systematix Shares and Stocks (India) Ltd. The highest estimate for the company's net sales is INR 31 billion from Systematix and the lowest around INR 30 billion by Nomura Equity Research.

Cement companies had raised prices in April to manage the increase in costs due to the war in West Asia. Cement prices had been raised in the south, east, and Central India, according to brokerages. Prices were relatively stable in the west and north. "Our channel checks suggest all-India average cement prices (adjusted for GST revisions) rose 4.4% QoQ and 1.4% YoY in 1QFY27E," Kotak said in a report. Nuvoco Vistas is a building materials company. The company's portfolio includes cement, ready-mix concrete, and modern building materials.

Nuvoco is likely to report healthy volume growth of 6-7%, in line with industry average, as demand recovered after the slowdown due to the festival season, according to Systematix. Demand was strong in the June quarter due to the delayed monsoon and was supported by healthy infrastructure spending, retail housing, and pre-monsoon construction activity. However, some moderation was seen due to labour shortages and weak building activity in select regions, according to Prabhudas Lilladher.

Nuvoco's earnings before interest, taxes, depreciation, and amortisation are estimated at INR 4.8 billion for the June quarter, down 9.8% from INR 5.3 billion in the year-ago quarter, according to the average of estimates. The highest estimate for the company's EBITDA is INR 5.1 billion from Prabhudas Lilladher and the lowest INR 4.2 billion from Systematix.  

Brokerages expect the cement makers' EBITDA per tonne to remain broadly stable in the June quarter as the April price hikes are likely to offset the 5% on-year increase in operating costs. 

"While the April price hikes should support near-term profitability, partial impact of war-led cost inflation will be visible in 1QFY27," Systematix said in a report. Price hikes implemented in April largely sustained through the quarter, helping companies offset higher input cost pressures and the company management has guided EBITDA per tonne will be in the range of INR 150-INR 200 per tonne.

The recent correction in pet coke prices should provide some relief to Nuvoco and support its margin recovery in the second half of the current financial year, brokerages said. Going ahead, brokerages expect peak fuel inflation to negatively impact profitability in the September quarter as this coincides with the seasonal lull due to the monsoon. There is a low possibility for price hikes in near future, brokerages said. Recovery in demand and pricing is expected post monsoon, depending on an improvement in construction activity.

Friday, shares of Nuvoco Vistas closed at INR 320.20 on the National Stock Exchange, up 2.3% from Thursday. The stock is up nearly 5% since the company reported its March quarter earnings.
 
Out of the 10 brokerage reports on the company available with Informist, nine have a "buy" recommendation and one has "hold" recommendation. The average target price of the "buy" recommendation is INR 396, which is 19% higher than the closing price Friday.

Following are the Apr-Jun earnings estimates for Nuvoco Vistas from five brokerage firms in descending order by estimate of net profit, in INR billion:

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Edited by Akul Nishant Akhoury

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