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.

Nuvoco Vistas Corporation delivered exceptional third-quarter performance for FY26, achieving a remarkable turnaround from loss to profitability. The cement manufacturer reported a consolidated net profit of ₹49.10 crores in Q3 FY26, compared to a loss of ₹61.40 crores in the same period last year, demonstrating strong operational recovery and financial discipline.

Outstanding Q3 FY26 Financial Performance

The company achieved remarkable financial results during the quarter, with several metrics reaching new highs. The turnaround to profitability was supported by robust revenue expansion and exceptional EBITDA improvement, contrasting with most other cement producers whose profits declined sequentially due to GST-related price revisions.

The company achieved its highest third-quarter consolidated volume of 5.00 million tonnes, representing a 6.38% increase year-on-year. This volume growth translated into strong revenue performance, with total income reaching ₹2,700.00 crores, marking a 12.03% improvement compared to Q3 FY25. The earnings met analyst expectations and surpassed the September quarter performance.

Exceptional Profitability and Margin Expansion

EBITDA performance stood out as a key highlight, surging 48.84% year-on-year to ₹384.00 crores from ₹258.00 crores in Q3 FY25. The EBITDA margin expanded significantly to 14.22% in Q3 FY26 from 10.70% in the corresponding quarter last year, reflecting a substantial improvement of 352 basis points.

The company maintained its industry-leading premiumization at 44% for consecutive quarters, achieving an all-time high for the second quarter in a row. This demonstrates sustained customer preference for premium products, with growing recognition for the Nuvoco Concreto and Nuvoco Duraguard franchises as preferred choices across building material applications.

Operational Excellence and Market Recovery

Despite early macroeconomic challenges from prolonged monsoon and festivities that softened demand in October and November, December saw healthy double-digit growth, demonstrating strong recovery momentum. The company's performance showcases operational excellence amid challenging market conditions.

Strategic Capacity Expansion and Debt Management

Nuvoco Vistas is advancing ambitious expansion plans to increase annual capacity by 10 million tonnes to 35 MT by the next fiscal year. This expansion will be backed by a 4-million-tonne organic expansion in east India and the acquisition of Vadraj Cement in west India, which has a capacity of 6 million tonnes.

The company ended the December quarter with debt of ₹4,217.00 crores, up from ₹3,492.00 crores as of September-end, but down from ₹4,350.00 crores in December of the previous year. Over the medium term, the company will consider brownfield expansion at Chittorgarh, Rajasthan, and greenfield expansion at Gulbarga, Karnataka.

Management Commentary and Future Outlook

Jayakumar Krishnaswamy, Managing Director of Nuvoco Vistas Corporation, highlighted the company's resilience during challenging market conditions. "Despite early macroeconomic challenges from prolonged monsoon and festivities that softened demand in October and November, December saw healthy double-digit growth, demonstrating strong recovery momentum," he stated. "The company delivered its highest-ever third quarter volume and a 49% YoY rise in EBITDA, driven by a sustained focus on premiumisation and operational excellence."

Currently having presence only in east and north India, the Vadraj acquisition will provide Nuvoco with 17% of its capacity in west India, significantly enhancing its geographic footprint and market reach across the country.