Prime Highlight :
- Nuvoco Vistas has raised cement prices across major markets following a pick-up in demand, expecting volumes to grow 7–8% in Q4 FY26.
- The price hike aligns with rising costs and is timed with seasonal demand trends, post-Makar Sankranti, supporting revenue growth.
Key Facts :
- Nuvoco is refurbishing the Vadraj cement facilities in Gujarat, with grinding and clinker units expected to commission between Q3 FY27 and Q1 FY28.
- Once operational, the Vadraj units will raise Nuvoco’s total cement capacity to 35 million tonnes per annum, aided by a new railway line expected by early 2027.
Background :
Nuvoco Vistas Corporation Ltd has raised cement prices across major markets following a pick-up in demand and expects volumes to grow further in the fourth quarter of FY26. The company said demand conditions have improved since December and are likely to remain strong through the March quarter.
Jayakumar Krishnaswamy, managing director of Nuvoco Vistas, said the company implemented price increases in mid-January across non-trade channels in all operating regions. It also attempted price hikes in the trade segment in eastern and northern India. He added that early trends look positive, though the company will review whether the increase sustains.
Krishnaswamy said cement demand usually improves after Makar Sankranti and remains steady through the end of the financial year. Based on current trends, the company expects demand to grow by 7–8% in the fourth quarter. He noted that cement prices had fallen sharply in recent months as companies passed on tax benefits, but rising costs required a price correction.
The price hike comes as Nuvoco moves ahead with the refurbishment of the Vadraj cement facilities in Gujarat, which it acquired through insolvency proceedings. The company plans to commission the grinding and clinker units in phases between Q3 FY27 and Q1 FY28.
Management said work at the Kutch and Surat sites is progressing as planned, with key equipment undergoing overhaul. By the first half of FY27, the company expects to complete installation and begin trial runs. Once fully operational, the Vadraj units will increase Nuvoco’s total cement capacity to 35 million tonnes per annum.
The project also depends on a new railway line linking the Kutch plant. The railway extension is expected to be completed by early 2027, with the plant siding ready by June FY28.
