Nuvoco Vistas Corporation has received a maintained BUY rating from Prabhudas Lilladher, with the brokerage revising its target price upward to ₹443.00 from the earlier ₹435.00. The recommendation comes following the company's inline operating performance in Q3FY26, which demonstrated resilience despite challenging market conditions.

Q3FY26 Operational Performance

The cement manufacturer reported decent volume growth during the quarter, with key performance metrics reflecting mixed results:

The decline in pure cement realizations was primarily attributed to weak prices in the eastern region. However, this was offset by significant improvement in EBITDA per tonne, which reached ₹763.00 compared to Prabhudas Lilladher's estimate of ₹775.00.

Cost Structure and Margin Dynamics

Raw material costs remained elevated despite the company's access to better-priced slag under long-term contracts. The power and fuel cost reduction of 9% YoY was aided by a higher share of domestic coal in the energy mix. Management expects overall fuel costs to remain largely stable, supported by increased domestic coal usage.

The recent uptick in pet coke prices poses a risk to margins in Q4FY26. However, cement price hikes implemented in January are holding amid improving demand conditions, providing some support to realizations.

Expansion Plans and Capacity Growth

The Vadraj acquisition remains on track with commissioning expected by Q1FY28. This strategic expansion will take Nuvoco Vistas Corporation's total cement capacity to approximately 35 million tonnes per annum, significantly enhancing its market presence.

Financial Projections and Valuation

Prabhudas Lilladher has raised its EBITDA estimates by 2% based on slightly higher volumes. The brokerage expects the company to deliver EBITDA CAGR of 19% over FY25-28E period.

The stock is currently trading at EV of 8.2x FY27E EBITDA and 6.8x FY28E EBITDA. The revised target price of ₹443.00 is based on 9x EV of September 2027E EBITDA, reflecting the brokerage's confidence in the company's growth trajectory and operational improvements.

Nuvoco Vistas Corporation has received positive rating action from CRISIL Ratings Limited, with the agency removing the 'Rating Watch with Developing Implications' status and assigning a stable outlook to the company's credit facilities. The development was communicated to stock exchanges on January 15, 2026, in compliance with regulatory disclosure requirements.

Rating Reaffirmation and Outlook Revision

CRISIL has reaffirmed Nuvoco Vistas Corporation's long-term ratings while providing clarity on the company's credit profile. The rating action encompasses both bank facilities and debt instruments of the cement manufacturer.

Regulatory Compliance and Timeline

The company disclosed the rating revision under Regulations 30 and 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The rating communication from CRISIL was received via email on January 14, 2026, at 7:20 p.m., with the formal disclosure made to BSE and NSE on January 15, 2026.

Significance of Rating Action

The removal of 'Rating Watch with Developing Implications' indicates that CRISIL has resolved its previous concerns regarding the company's credit profile. The stable outlook suggests that the rating agency expects the company's credit metrics to remain steady in the near term. The reaffirmation of both long-term and short-term ratings demonstrates confidence in Nuvoco Vistas Corporation's financial stability and operational performance.

The rating action was formally communicated by Company Secretary Shruta Sanghavi through digitally signed correspondence to both stock exchanges where the company's shares are listed.