Nuvoco Vistas Corporation Ltd Q2 FY27 Results Analysis: PAT Jumps 78%, EBITDA Margin Compresses 353 bps

Nuvoco Vistas Corporation Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 2,789.97 Cr (+13.53% YoY) and PAT growth of +77.85% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue grew 13.5% YoY to Rs.2,789.97 Cr, above the guided 7-8% industry growth, with PAT up 77.9% to Rs.64.79 Cr helped by a 29.2% fall in finance costs. Input-cost inflation (power and fuel +20.1%, materials +24.1% YoY) compressed EBITDA margin 353 bps QoQ to 14.63%, and the effective tax rate jumped to 40.01%. Capex execution is ahead of plan (86.6% of FY27 target spent in H1) with the 2 MTPA Surat grinding unit commissioned, and deleveraging continues with D/E at 0.50x, though net debt remains above the Rs.3,500-4,000 Cr comfort band.

Key Investment Insights

Key Positives

• Revenue grew 13.5% YoY to Rs.2,789.97 Cr, exceeding the guided mid 7-8% industry growth, implying market share gains
• PAT grew 77.9% YoY to Rs.64.79 Cr; EPS Rs.1.81 vs Rs.1.02 a year ago
• Finance costs fell 29.2% YoY to Rs.71.88 Cr; Debt/Equity improved to 0.50x from 0.60x
• RMX & Others segment turned profitable at Rs.3.99 Cr EBIT vs losses of (Rs.7.41) Cr a year ago and (Rs.4.68) Cr in Q1FY27
• Vadraj Cement commissioned 2 MTPA grinding capacity at Limla, Surat during the quarter
• H1 capex of Rs.779.80 Cr is 86.6% of the Rs.900 Cr FY27 target; D/E of 0.50x within guided trajectory
• Net worth grew 13.8% YoY to Rs.10,450.80 Cr; CRISIL A1+/AA-Stable ratings reaffirmed

Risk Factors

• EBITDA margin compressed 353 bps QoQ to 14.63% and 30 bps YoY; cement segment EBIT fell 50.2% QoQ
• Power and fuel costs rose 20.1% YoY and cost of materials consumed 24.1% YoY, both outpacing revenue growth
• Effective tax rate jumped to 40.01% from 28.82% YoY, consuming Rs.43.21 Cr of Rs.108.00 Cr PBT
• Net debt of ~Rs.5,392 Cr is above the management comfort band of Rs.3,500-4,000 Cr
• CCI penalty of Rs.490 Cr pending before Supreme Court with no provision booked
• CFO declined 9.0% YoY to Rs.533.56 Cr in H1FY27