NCL Industries Cement Output Up, But Other Segments Face Steep Declines

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AuthorKavya Nair|Published at:
NCL Industries Cement Output Up, But Other Segments Face Steep Declines
Overview

NCL Industries reported a 5% rise in Q3 FY26 cement production and dispatches. However, the company faced significant downturns in cement boards (down 41%) and door segments (down 100%). Ready-mix concrete also saw declines. The mixed performance highlights ongoing challenges despite core cement strength.

Cement Segment Strength

NCL Industries Limited announced a positive start to its fiscal year, reporting a 5% year-on-year increase in both cement production and dispatches for the third quarter ended December 31, 2025. The company produced 6.95 lakh tonnes of cement, up from 6.61 lakh tonnes in the same period last year. Dispatches mirrored this growth, reaching 6.93 lakh tonnes compared to 6.63 lakh tonnes in Q3 FY25.

Declines in Other Product Lines

Despite the robust cement performance, NCL Industries experienced substantial setbacks in several other key business segments. Cement boards production saw a sharp decline of 41% during the quarter, while dispatches fell by 25%. The doors segment recorded a near-complete shutdown, with production dropping by 100% and dispatches down by 93% for the quarter. Ready-mix concrete (RMC) also faltered, with production and sales slipping 18% for the quarter.

Nine-Month Performance Overview

The mixed operational results extended over the first nine months of the fiscal year. Cement production grew by 3% to 19.69 lakh tonnes, and dispatches rose 2% to 19.61 lakh tonnes. However, cement boards production fell 35% and dispatches decreased by 32% over the nine-month period. The doors segment saw a 93% drop in production for the cumulative period. Hydro power generation showed a modest 2% growth for the quarter and 6% for the nine months.

Stock Reaction

The company's shares closed trading on January 7 at ₹211 on the National Stock Exchange (NSE), reflecting a marginal decline of ₹0.16 or 0.08%. This slight dip suggests that while the cement segment is performing well, the significant underperformance in other areas may be tempering investor enthusiasm. Investors will be closely watching for strategies to revive these struggling segments.

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