Nuvoco Vistas targets 35 MTPA capacity by FY27 with Vadraj

Expansion plan: +10 million tonnes to reach 35 MTPA

Nuvoco Vistas Corporation Ltd. has outlined a plan to expand its annual cement capacity by 10 million tonnes to 35 million tonnes by FY27. The roadmap combines a 4 million tonnes per annum (MTPA) organic expansion in eastern India with the acquisition of Vadraj Cement in western India. At present, Nuvoco’s footprint is concentrated in east and north India, and the west entry is being positioned as a key portfolio shift. The company’s investor presentation indicates that, beyond the near-term step-up, it is also evaluating additional capacity projects over the medium term. These include a brownfield expansion at Chittorgarh in Rajasthan and a greenfield expansion at Gulbarga in Karnataka. Separately, a report also mentioned a ₹1,950 crore investment plan, including ₹1,500 crore for a new project in “Gulbarga, Maharashtra,” highlighting that location details have appeared inconsistently across sources.

East India: ₹200 crore grinding push and debottlenecking

The company has planned a ₹200 crore investment to expand grinding capacity by 4 MMTPA in eastern India by FY27. The investment covers installation of new cement grinding mills and debottlenecking of existing plants. Nuvoco has also flagged refurbishments and expansions across multiple eastern states, including Chhattisgarh, Jharkhand, West Bengal, and Odisha. Alongside capacity, the company has indicated an added focus on premium and blended cement products. The strategy, as framed in brokerage commentary, is to use higher volumes and a richer product mix to improve operating performance while defending market share in core regions. The same commentary expects a recovery in sales volume in H2FY26, supported by housing and infrastructure demand.

Vadraj Cement acquisition: western entry and capacity mix

Vadraj Cement is central to Nuvoco’s move into western India. One part of the provided information states Vadraj has a capacity of 6 million tonnes and, with the acquisition, Nuvoco expects about 17% of its capacity to be in west India. Other parts of the provided information describe the deal as adding 9.5 MTPA, and also mention Vadraj assets including a 3.5 million tonne clinker unit and a 6 million tonne grinding unit, along with captive limestone and a captive jetty. Nuvoco’s managing director, Jayakumar Krishnaswamy, has said the company is positioned to operationalise the Kutch and Surat plants by Q3 FY27. In another excerpt, Nuvoco stated a plan to make the plants and associated equipment ready for trial runs by H1 FY27, with full commissioning targeted for Q3 FY27. A separate line also referenced a target to commission a new grinding unit along with Vadraj’s Kutch and Surat assets by December 2027.

Funding structure for Vadraj: debt and bridge financing

Market reports stated the Vadraj buyout would be financed via a mix of long-term and short-term borrowings. According to an investor presentation cited in the provided text, long-term debt was to be limited to ₹600 crore, with the remaining funded through short-term bridge financing of ₹1,200 crore. Another report described the acquisition as completed through a ₹1,800 crore resolution plan under India’s bankruptcy process, effective June 21, 2025, and provisionally accounted for under Ind AS 103, with final valuation underway. A brokerage note also described the transaction as a strategic value buy funded without a significant increase in consolidated debt levels.

Capacity outlook: 25 MTPA today, 31 MTPA by Q3 FY27, 35 MTPA by FY27

Several capacity markers are cited across the provided information. One brokerage note said the Vadraj acquisition would take Nuvoco from 25 MTPA to 31 MTPA by Q3 FY27. The broader plan, combining Vadraj and the east India grinding expansion, is to reach 35 MTPA by FY27 from 25 MTPA at present. Management commentary also frames the western assets as complementary to its north presence, while creating a third regional pillar in the portfolio. In parallel, the investor presentation flags optionality for Chittorgarh (brownfield) and Gulbarga (greenfield) over the medium term.

Q1 FY26: profit jump, record operating metrics, steady volumes

Nuvoco reported a sharp rise in profitability in Q1 FY26 (April to June). One set of figures in the provided text shows consolidated net profit at ₹133.16 crore versus ₹2.84 crore a year earlier, with revenue from operations up nearly 9% to ₹2,872.70 crore and total expenses broadly flat at ₹2,685.90 crore. EBITDA was reported at a record ₹533 crore for the quarter, described as the company’s highest-ever first-quarter operating earnings. Another excerpt cited EBITDA of ₹577.8 crore and an operating margin of 20.11% versus 13% in Q1 FY25, while a separate line referenced margins of 18.35% with a 510 bps year-on-year improvement. The cement business remained the primary contributor, with one report putting cement segment revenue at ₹2,630.35 crore and ready-mix concrete and other businesses at ₹254.45 crore.

Q2 FY26: revenue growth and return to profit

For Q2 FY26, the company reported revenue of ₹2,458 crore, up 8.3% from the same quarter last year. Net profit for the quarter was ₹36 crore, compared with a net loss of ₹85 crore in Q2 FY25. These numbers, taken alongside Q1 FY26 profitability and EBITDA commentary, are being used by brokerages to support a more constructive near-term view on operational performance. Brokerage commentary included expectations of a volume recovery in H2FY26, driven by improvement in housing and infrastructure demand.

Stock reaction: sharp intraday move after results

Nuvoco shares jumped as much as 9.1% to ₹417.35 on the BSE following the quarterly profit surge highlighted in market reports. The stock later closed at ₹382.65, up 1.7% on the day. The provided text also states the shares have rallied 13% so far in 2025, gained 23% over the last three months, and rose nearly 11% in the last week. The price action reflects how closely the market is tracking the combination of operating performance and the western expansion narrative.

Broker views: Buy/Accumulate calls and target price range

As of October 2025, brokerages have largely maintained “Buy” or “Accumulate” ratings on the stock, with target prices ranging from ₹459 to ₹560 per share. The provided text characterises this as implying up to 33% to 35% upside, based on operational metrics and growth prospects. Nirmal Bang reiterated a ‘Buy’ call and valued the business at 8.9x Jun-27E EV/EBITDA to sustain a target price of ₹469. The same note cited FY25 to FY27E revenue, EBITDA, and PAT growth CAGRs of 10%, 24%, and 351%, respectively. It also highlighted cost initiatives such as Project SPRINT and Project BRIDGE as delivering tangible cost benefits.

Key figures snapshot

Timeline and operational milestones cited

Why this matters: footprint diversification and execution risk points

The planned move from east and north India into the west changes Nuvoco’s geographic risk profile and could broaden its customer and channel mix. The investor presentation claim that 17% of capacity would sit in west India after Vadraj indicates a meaningful regional rebalancing rather than a marginal entry. At the same time, the reported differences in Vadraj “added capacity” figures and commissioning timelines show why investors typically watch integration milestones closely. Financing details also matter because the company has outlined a defined mix of ₹600 crore long-term debt and ₹1,200 crore bridge financing for the buyout in one cited presentation. Finally, management has tied the performance narrative to premiumisation, geo-optimisation, and cost efficiency, while brokerages have pointed to internal projects such as SPRINT and BRIDGE for cost benefits.

Conclusion

Nuvoco’s FY27 capacity plan is anchored in a 4 MMTPA eastern grinding expansion and the Vadraj acquisition, which is expected to open up western India through the Kutch and Surat assets. The company has already reported strong profitability momentum in Q1 FY26 and a return to profit in Q2 FY26, alongside a positive stock reaction and supportive brokerage ratings as of October 2025. The next key checkpoints, based on the provided disclosures, are trial-run readiness in H1 FY27 and commissioning/operationalisation targets around Q3 FY27, with at least one report also citing December 2027 for commissioning of associated assets. Investors are likely to track execution against these milestones and the company’s stated funding plan as the expansion progresses.