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Systematix Report
Nuvoco Vistas Q4 Results Review
Nuvoco Vistas Corporation Ltd. reported a strong Q4 FY26 result led by higher realisations and better cost efficiencies. Revenue grew by 9% YoY (+22% QoQ) to Rs 3,300 crore in line with our est. of Rs 3,360 crore.
Volumes were up by 5% YoY (+20% QoQ) at 6.0mt in line with brokerage's estimate. Blended realization improved by 2% QoQ (+3% YoY) to Rs 5,511/tn. Ebitda rose by 7% YoY to Rs 590 crore owing to higher prices. Ebitda/tn remains flat YoY at Rs 979 vs Rs 968 in Q4 FY25 as the increase in realization was more than offset by the increase in cost/ton.
Raw material cost/tn rose 3% on a YoY basis and stood at Rs 1,162. Power and fuel cost/tn increased by 5% to Rs 904/tn. Freight cost/tn increased by 3% YoY to Rs 1,452 due to lack of rake availability.
The company reported a net profit of Rs 140 crore in Q4 FY26. However, it includes an exceptional expense of Rs 50 crore related to an additional provision arising from uncertainty around incentives following the revocation of the West Bengal Incentives scheme.
Hence, adjusted PAT stands at Rs 190 crore. The company has achieved a healthy trade mix of 75% and sustained its premium product mix at 44% during the quarter. Capacity utilization for the quarter stood at 96%. The company has maintained its blended fuel cost at Rs 1.44/Mcal in Q4 FY26.
Valuation and view
Systematix remain cautious on the sector's near-term demand outlook as profitability is likely to remain under pressure due to elevated fuel, packaging, and raw material costs over the next one–two quarters. While price hikes have been implemented across regions, the extent of pass-through will depend on demand conditions and competitive intensity.
Industry players are focusing on cost optimisation through fuel mix rationalisation and higher blended cement share, which should provide partial offset.
Overall, profitability recovery will hinge on pricing discipline and normalization in input costs.
The brokerage values Nuvoco at an EV/Ebitda of 10 times FY28E and arrive at a target price of Rs 482. Maintain Buy.
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