1. Opening Hook
India got cheaper cement this quarter — no, not because your local dealer had a Diwali sale, but thanks to the GST rate cut from 28% to 18%. While the nation rejoiced, Nuvoco’s management had to explain how “passing on benefits” doesn’t mean passing out profits. Add to that a monsoon that overstayed like a nosy relative and festive chaos packed tighter than a truckload of clinker — and you’ve got Q2FY26 in one bag. Yet somehow, they posted a 62% jump in EBITDA. 🤯Read on — it only gets spicier when CCDs, clinker ratios, and “moral obligations” enter the chat.
2. At a Glance
- Revenue:₹2,950 crore – Grew 1% QoQ; apparently “rainwater harvesting” wasn’t part of demand planning.
- EBITDA:₹371 crore – Up 62% YoY; CFO’s caffeine consumption tracked similar growth.
- EBITDA Margin:12.6% – Cement got cheaper, but margin jokes didn’t.
- Net Debt:₹3,492 crore – Down ₹1,009 crore YoY; debt reduction now counts as cardio.
- Premium Mix:44% – Because “Concreto Uno” sounds classier than “normal cement.”
- Fuel Cost:₹1.46/Mcal – Petcoke prices rose; efficiency prayers continue.
- Stock Movement:Traders stayed bullish — maybe they heard “GST cut” and stopped listening.
3. Management’s Key Commentary
“The reduction of GST from 28% to 18% is a structurally positive move.”(Translation:We just lost pricing power but hey, let’s call it “structural.” 😏*)
“Premiumization reached 44% this quarter.”(Translation:Consumers finally realized our fancy cement bags look better on Instagram.*)
“Vadraj plants are on track for trial runs by H1FY27.”(Translation:We’ll be ready when India’s next election cycle begins — coincidence?*)
“Net debt reduced by ₹1,009 crore year-on-year.”(Translation:Bankers are calling us again — but this time, to say congratulations.*)
“AI is being used for predictive maintenance and waste heat optimization.”(Translation:Robots now watch our kilns so humans can argue about GST.*)
“We are morally obligated not to raise prices.”(Translation:Even our cement has ethics — margins don’t.*)
“We target 7–8% demand growth ahead.”(Translation:Our hopes are more cemented than the rural roads they’ll build.*)
4. Numbers
Decoded
| Metric | Q2FY26 | YoY Change | One-Line Analysis |
|---|---|---|---|
| Revenue | ₹2,950 Cr | +3% | Sales stood tall despite rain playing villain. |
| EBITDA | ₹371 Cr | +62% | Cement didn’t crack under cost pressure. |
| EBITDA Margin | 12.6% | +420 bps | Finally, a margin that doesn’t need curing time. |
| PAT | ₹126 Cr | +25% | Profit still fragile, like a newly set wall. |
| Net Debt | ₹3,492 Cr | -₹1,009 Cr YoY | CFO flexed his deleveraging muscles. |
| Fuel Cost | ₹1.46/Mcal | +2% QoQ | Petcoke: the villain cement CEOs love to hate. |
| Premium Product Share | 44% | +400 bps YoY | Selling cement like iPhones now. |
| Trade Mix (Retail) | 74% | Flat | “Retail is detail,” said the man hauling 50kg bags. |
5. Analyst Questions
ICICI Securities:“How will realizations behave post-GST cut?”Mgmt:“We’re morally obligated not to hike prices.”(Translation:We’ll wait till everyone forgets this call.*)
HSBC:“Industry growth?”Mgmt:“Somewhere between 2–4%, give or take a monsoon.”
Citi:“Spot prices?”Mgmt:“Flat, like our patience explaining GST math.”
BOB Caps:“Other expenses rose 12%.”Mgmt:“Shutdown maintenance, not CFO’s new SUV.”
Jefferies:“Will CCD refinancing affect interest?”Mgmt:“Yes — for once, in a good way.”
6. Guidance & Outlook
Management seescement demand accelerating 7–8%in H2FY26, powered
