Shares of Nuvoco Vistas Corporation are in focus after the cement manufacturer reported a strong operational performance for the second quarter of fiscal year 2026 (Q2FY26). The company’s robust results, driven by higher realisations and cost efficiencies, have prompted brokerages to maintain a bullish outlook on the stock, seeing a potential upside of up to 35.5 per cent.
For the quarter ending September 2025, Nuvoco Vistas reported a consolidated revenue of Rs 2,457.6 crore, an 8.3 per cent increase year-on-year (YoY). The company’s EBITDA witnessed a significant surge of 67.8 per cent YoY to reach Rs 367 crore. Consequently, the company posted a Profit After Tax (PAT) of Rs 36.4 crore, a notable turnaround from the net loss of Rs 85.2 million recorded in the same quarter of the previous year.
Following the results, Choice Institutional Equities reiterated its “Buy” rating with a target price of Rs 560 per share, implying a 33.8 per cent upside from the current market price of Rs 418.50. The brokerage cited sectoral tailwinds, strong capacity addition plans of 10 Mntpa by FY27, premiumisation initiatives, and an ongoing cost-saving program as key growth drivers.
Nirmal Bang Institutional Equities also maintained a “Buy” recommendation, setting a target price of Rs 532, suggesting a 27 per cent upside. They highlighted the company’s “Value-Driven Growth with Financial Prudence,” noting that premium products contributed a record-high 44 per cent of sales in the quarter.
Prabhudas Lilladher has an “Accumulate” rating on the stock with a revised target price of Rs 459. The firm pointed to Nuvoco’s transition into a growth phase, backed by strategic acquisitions and expansions that will take its total capacity to approximately 35 Mntpa by the end of FY27.
A common theme among the reports is Nuvoco’s strategic focus on capacity expansion, particularly the Vadraj acquisition to strengthen its presence in the western and central markets, and a capital-efficient 4 Mntpa expansion in East India.
The management is also targeting a cost reduction of Rs 50 per tonne in FY26 through various operational efficiencies, including higher usage of alternative fuels and improved logistics. The company anticipates industry demand to grow by 7-8 per cent in the second half of FY26, supported by government capital expenditure and housing projects.
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