NUVOCO Q1 FY27 earnings call.
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Revenue
₹3,129 Cr
verified against source
Revenue YoY
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EBITDA
Pending
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Actual signal trajectory
Where this quarter sits.
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What the record says.
Nuvoco delivered a resilient Q1 FY27 with 5% volume growth to 5.3 million tons and 7% AITA increase to 572, marking the highest-ever Q1 performance despite geopolitical headwinds affecting energy and raw material costs. The company navigated fuel cost inflation through coal-petcoke mix optimization, containing fuel cost at 1.52 per million cal within guided range. The 2 million ton Surat grinding unit was commissioned ahead of schedule in July 2026, representing the company's first western region capacity expansion. Rail logistics constraints and railway prioritization for power sector during summer impacted clinker movement, though this normalized post-mid-July. Net debt reduced by ~600 crore YoY to 4,595 crore. Looking ahead, management expects stable pricing given disciplined industry capacity additions and continued government capex support (13% YoY growth in Q1). Petcoke share reduced from 50%+ to 42% through coal substitution. Key risks include persistent cost inflation in power/fuel, rail availability dependency, and Bengal's political transition impacting demand. Capex guidance maintained at 900 crore for FY27 with 370 crore already spent.
Colored figures show movement against the previous available record.
Guidance to track
- Targeting mid-7-8% volume growth aligned with ~78% market growth capture, with incremental volumes from Gujarat where Q4 annualized run-rate expected to reach 2M tons.
- Expect ~100 rupees per ton cost increase in Q2 vs Q1 due to power cost rise from planned kiln/VRM shutdowns (40-50 rupees), offset partially by bag cost reduction (~20-25 rupees) and stable fuel.
- FY27 capex maintained at 900 crore with 370 crore already spent in Q1; FY28 capex expected in 950-1,000 crore range (give or take 1,020 crore) including Satana bulk terminal.
- Gujarat operations modeled to achieve EBITDA per ton equal to North India operations by Year 2-3 of launch, with current contribution margins already competitive with major Gujarat players.
Risks flagged
- Rail rake unavailability in Q1 forced clinker movement by road, increasing distribution costs by ~50 rupees per ton. Though normalized post-July with 4 rakes per day achieved, this remains a structural vulnerability during peak coal movement seasons.
- Management acknowledged West Bengal government change may take 'a quarter or so' for new schemes to be announced and operationalized, creating near-term demand uncertainty in a key market.
- Management explicitly stated they will need to be 'aggressive' to establish market share in Gujarat, though they expect to maintain A-group positioning. Competitors may react, potentially triggering regional price pressure.
- Fuel and raw material contracts booked at elevated Q1 prices (~2.56/GM cal pet coke peak) will flow through cost structure in coming quarters; management flagged possible further cost impact in Q3 though purchase team claims to have curtailed high-priced bookings.
Key quotes
- Petcoke prices went all the way to 2 rupees 56 per million cal. Actually so we refused to book at those prices. We kind of curtailed booking at much lower... 205 or 215 was the number which we booked, so that is helping us.
- All these capacities which we are installing, commissioning in expanding in East was not needed to sell products for FY27. It will be needed in FY28 only. Right now we are not hard pressed for capacity.
- In the next three years there are going to be only max three and at the best two... and with market growing at 7-8% conservatively, very soon in the next 18 to 24 months capacity utilization of the entire east will again cross 80%. And if you were to go to 80%, pricing will become stronger.
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