Nuvoco Vistas Q1FY27 profit rises 20% to ₹160 crore on higher volumes, operational efficiencies

Nuvoco Vistas Corp, the cement arm of Gujarat-based Nirma Group, reported a 20 per cent year-on-year increase in consolidated net profit for the first quarter of FY27, helped by higher cement sales volumes, operational efficiencies and cost discipline.

Despite global uncertainties, the company posted a consolidated profit after tax of ₹160 crore for the quarter ended June 30, compared with ₹133 crore in the corresponding period last year. Revenue from operations rose nine per cent year-on-year to ₹3,129 crore, while EBITDA increased seven per cent to ₹572 crore, marking the company’s highest-ever first-quarter operating profit.

Cement sales volumes grew 5 per cent year-on-year to 5.3 million tonnes during the quarter, supporting revenue growth, even as the industry navigated macroeconomic and geopolitical headwinds, the company stated in a regulatory filing.

Managing Director, Jayakumar Krishnaswamy, attributed the performance to resilient execution, cost discipline and operational efficiencies, saying the company maintained a tight control on costs, while navigating supply chain disruptions arising from geopolitical tensions.

“The company achieved strong year-on-year growth in both EBITDA and profit after tax. The performance reflects resilient execution, supported by continued focus on cost discipline and operational efficiencies,” he said.

On the expansion front, Nuvoco inaugurated a two million tonne per annum (MTPA) grinding unit at its Limla cement plant in Surat on July 11, ahead of schedule. The facility is expected to strengthen the company’s footprint in western India, while freeing up capacity at its Rajasthan plants to cater to demand in northern markets.

The company is also progressing with the operationalisation of its Kutch project in phases from the third quarter of FY27. In addition, work has commenced on a bulk cement terminal at Viramgam, Sachana, in Gujarat, equipped with a dedicated railway siding.

The terminal is expected to become operational by the second quarter of FY28 and will serve as a distribution hub to deepen the company’s presence in Gujarat. Nuvoco said its ongoing capacity expansion programme remains on track and will increase its total cement manufacturing capacity to 35 MTPA by FY28.

Commenting on the operating environment, Krishnaswamy said geopolitical uncertainties continued to pose challenges for supply chains and input costs, but the company remains focused on prudent procurement, supply chain optimisation and cost efficiencies to safeguard margins.

“Going forward, while we remain watchful of evolving geopolitical developments, we will continue to pursue the same rigour through prudent procurement, continued cost optimisation, and ongoing improvements in supply chain efficiency,” he added.