Nuvoco Vistas Corporation , a prominent player in the Indian cement industry, has received a significant financial reprieve as the Principal Commissioner of Income Tax, Mumbai-6 (PCIT) dropped proceedings under section 263 of the Income Tax Act for two consecutive financial years.

Tax Relief Details

The company has successfully contested tax disputes worth approximately Rs 452.52 crores. Here's a breakdown of the relief:

Proceedings Dropped

The PCIT has dropped all proceedings entirely after considering Nuvoco Vistas' detailed submissions, evidence, and relevant judicial precedents. This decision ensures that the company will not face any tax outflow related to the issues raised in the show cause notices.

Company Disclosure

In compliance with regulatory requirements, Nuvoco Vistas has disclosed this development to the stock exchanges. The company filed separate disclosures for each financial year under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Impact on Nuvoco Vistas

This favorable outcome eliminates potential tax liabilities of Rs 452.52 crores for Nuvoco Vistas. The resolution of these tax disputes may enhance investor confidence and could potentially have a positive impact on the company's financial position.

The dropping of these proceedings marks a significant development for Nuvoco Vistas in its tax matters, providing clarity on its financial obligations and potentially freeing up resources for other business operations or investments.

Nuvoco Vistas Corporation Limited , a prominent player in the Indian cement industry, has reported a robust financial performance for the second quarter of fiscal year 2026, overcoming significant challenges posed by prolonged monsoons and GST rate transition.

Financial Highlights

The company achieved an EBITDA of Rs 371.00 crores in Q2 FY'26, marking a substantial 62% year-on-year increase. This impressive growth came despite facing adverse weather conditions and the complexities of GST rate changes.

Revenue and Market Performance

Nuvoco Vistas delivered a 1% quarter-on-quarter revenue growth per ton, demonstrating resilience in a challenging market environment. The company reached a record premiumization level of 44%, indicating strong brand momentum for its premium products, Concreto and Duraguard.

Key Operational Metrics

The company maintained a favorable trade mix at 74%. Fuel costs increased slightly to Rs 1.46 per Mcal due to higher petcoke prices. Net debt decreased by Rs 1,009.00 crores year-on-year to Rs 3,492.00 crores.

Strategic Initiatives

1. Capacity Expansion: Nuvoco Vistas announced a 4 million ton capacity expansion in the East at an investment of less than Rs 200.00 crores, with phased commissioning starting December 2025.

2. Vadraj Cement Acquisition: Progress continues on the Vadraj Cement acquisition, with plants targeted for commissioning by Q3 FY'27.

3. Market Outlook: Management expects 7-8% demand growth in coming months and targets Rs 25-50 per ton realization improvement through premiumization and geo-mix optimization.

4. GST Impact: The company passed on the full benefit of GST rate reduction from 28% to 18% to customers, demonstrating its commitment to customer value.

Future Outlook

Jayakumar Krishnaswamy, Managing Director of Nuvoco Vistas, expressed optimism about future growth prospects. He stated, "We remain firmly focused on sustaining growth and enhancing our market position. The Vadraj cement project and our expansion in the eastern region will further reinforce our leadership position in those markets."

The company plans to prioritize strategic initiatives such as premiumization, geo-optimization, and cost efficiency to enhance its competitive edge and deliver long-term value to stakeholders.

As the Indian cement industry navigates through changing market dynamics and regulatory landscapes, Nuvoco Vistas appears well-positioned to capitalize on growth opportunities while maintaining a focus on operational excellence and financial prudence.