Nuvoco Vistas shares rose nearly 8% after reporting a 20% year-on-year profit increase to Rs 160 crore for the June quarter. The company also inaugurated a new 2 MTPA grinding unit in Surat, marking its official entry into the western Indian market. Investors are tracking the company's progress toward its target of 35 MTPA total capacity by fiscal year 2028.
Nuvoco Vistas Corporation shares saw an 8% gain on Tuesday, reflecting positive market sentiment following the company's June quarter financial report and the expansion of its production footprint. The cement manufacturer posted a consolidated profit of Rs 160 crore, a 20% increase compared to the same period last year. Revenue for the quarter rose by 9% to Rs 3,129 crore, while operating profit, measured as EBITDA, reached Rs 572 crore, representing a 7% year-on-year growth.
Strategic Entry Into Western India
A key driver of the company's current expansion is the new 2 million tonnes per annum (MTPA) grinding unit at the Limla Cement Plant in Surat. This facility, managed by the subsidiary Vadraj Cement Ltd, provides Nuvoco with a direct foothold in the Gujarat market. The company invested Rs 240 crore to refurbish this plant, supplementing the earlier Rs 1,800 crore acquisition cost for Vadraj Cement assets. This move is designed to improve supply efficiency across Gujarat and Maharashtra and allows the company’s Rajasthan-based plants to focus their output on northern Indian markets, potentially optimizing logistics costs.
Capacity Targets and Execution Timeline
Beyond the Surat unit, Nuvoco Vistas has outlined a roadmap to grow its total cement capacity from 25 MTPA to 35 MTPA by fiscal year 2028. The company confirmed that its Kutch project is on track to begin phased operations in the third quarter of fiscal year 2027. Additionally, a new bulk cement terminal in Viramgam, Gujarat, is slated to begin operations by the second quarter of fiscal year 2028. These projects are intended to strengthen the company’s distribution network as it scales up production.
Investors should monitor how the company manages the debt associated with these capital-intensive projects and whether it can maintain its profit margins while absorbing the costs of new facility commissioning. While demand for cement is often linked to infrastructure and housing activity, the ultimate benefit of these new facilities will depend on market absorption, competitive pricing dynamics in the western region, and the company’s ability to execute these remaining projects without significant delays or cost overruns. The next key monitorables include the operational performance of the new Surat unit and any updates on the commissioning schedule for the Kutch project.