Nuvoco Vistas Q1 FY27 Results (NSE: NUVOCO)
Signal: Steady quarter
The read
Q1FY27 shows sustained revenue growth of 8.9% YoY with EBITDA margin stable near 18%. PAT growth of 20% was aided by a sharp 40% decline in finance costs. The cement segment remains the sole profit engine; ready-mix loss is immaterial. The company is in a steady growth phase with improving capital structure (D/E 0.45). Key watch items: volume realisation, capex progress toward 35 MMTPA, and resolution of pending legal claims.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,128.71 Cr | 8.9% | -5.4% |
| EBIT | ₹346.3 Cr | 8.6% | |
| Net profit | ₹159.63 Cr | 19.9% | |
| EPS | ₹4.47 | 19.8% | |
| EBIT margin | 18.3% |
P&L walk
Revenue grew 8.9% YoY driven by volume growth; EBITDA margin held at 18.3% despite power & fuel costs rising 9% YoY, as freight and other costs were managed. Depreciation increased 5% YoY reflecting capex additions. Finance cost declined sharply (-40% YoY) benefiting PAT growth of 20%.
Segments
Cement segment posted strong operating profit of ₹347 Cr (margin ~12%), while Ready Mix Concrete & Others recorded a loss of ₹4.68 Cr, a slight drag. Consolidated profit is primarily driven by the cement division.
Key positives
- Revenue growth of 8.9% YoY driven by volume/mix; all-India cement demand supportive.
- PAT up 20% YoY; finance costs fell 40% YoY to ₹70 Cr, improving bottom-line quality.
- EBITDA margin steady at 18.3% despite power & fuel cost increase (+9% YoY).
- Debt/equity at 0.45x, comfortable balance sheet.
Key concerns
- Standalone EBITDA margin (15.3%) lower than consolidated (18.3%) – subsidiary profitability is crucial.
- Ready Mix Concrete segment loss of ₹4.68 Cr – though small, needs monitoring.
- QoQ revenue decline of 5.4% (seasonal) – typical but should recover in H2.
- Outstanding litigation (CCI penalty ₹490 Cr and West Bengal incentives) unresolved.
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