Nuvoco Vistas Corporation Gains Bullish Rating from Prabhudas Lilladher

Nuvoco Vistas Reports Better-Than-Expected Q4FY26 Performance

Nuvoco Vistas Corporation, a leading cement manufacturer, has delivered a stronger-than-anticipated operating performance in the fourth quarter of FY26. The company's Q4FY26 results were driven by a 5% year-over-year (YoY) increase in volume, coupled with improved cement prices. As a result, the blended net sales realisation (NSR) increased by 3% quarter-over-quarter (QoQ), primarily due to higher cement prices in the eastern region. The premium product share remained healthy at 44%.

Despite an increase in raw material (RM) and power & fuel costs, due to higher input and pet coke prices, Nuvoco Vistas' strong operating leverage and pricing led to an improvement in earnings before interest, tax, depreciation, and amortisation (EBITDA) per tonne to INR983, surpassing Prabhudas Lilladher's estimate of INR847. The company has implemented price hikes of approximately INR8-12 per bag (trade) and INR10-15 per bag (non-trade), which are expected to largely offset cost inflation in the first quarter of FY27.

However, with fuel and packaging costs anticipated to remain elevated over the next one to two quarters, margin pressures may persist. These pressures will be partly mitigated by further price hikes and cost optimisation initiatives, provided demand remains supportive due to infrastructure and housing projects.

Outlook and Recommendations

Prabhudas Lilladher has revised its EBITDA estimates for Nuvoco Vistas by -0.3/0.4% on higher costs and pricing. The research firm expects the company to deliver an EBITDA compound annual growth rate (CAGR) of 9% over FY26-28E. The stock is currently trading at an enterprise value (EV) of 7.5x and 6.3x FY27E and FY28E EBITDA, respectively.

| Financial Metric | FY26E | FY27E | FY28E | | --- | --- | --- | --- | | EBITDA CAGR | - | 9% | - | | EV (x EBITDA) | - | 7.5x | 6.3x |

The brokerage firm maintains a 'BUY' rating for Nuvoco Vistas, with a revised target price of Rs474 (earlier Rs468), valuing the company at 9x EV of Mar'28E EBITDA.