NCL Industries Q3 FY26 Update: Cement Production Up 5%, Strategic Segment Challenges

NCL Industries Limited reported steady cement growth alongside segment-specific challenges for the quarter and nine months ended December 31, 2025. Core cement operations showed resilience with 5% production and dispatch growth, while diversified segments faced volume pressures.

Cement Business Delivers Consistent Growth

Cement production rose 5% YoY to 6,94,854 MT in Q3 FY26 from 6,61,049 MT, maintaining operational momentum. Dispatches followed suit at 6,93,229 MT, up 5% YoY from 6,62,936 MT, reflecting balanced supply-demand dynamics.

For 9M FY26, cement production reached 19,69,545 MT (up 3% YoY) and dispatches hit 19,61,141 MT (up 2% YoY), underscoring the segment's role as NCL's growth anchor amid infrastructure demand.

Diversified Segments Face Headwinds

Cement Boards experienced significant declines:

- Q3 Production: 11,907 MT (-41% YoY)
- Q3 Dispatches: 14,096 MT (-25% YoY)
- 9M Production down 35%, dispatches down 32%
- Ready Mix Concrete (RMC) volumes fell 18% YoY to 65,939 CuM in Q3, with 9M sales down 15% to 2,06,114 CuM, signaling competitive pressures in urban markets.

- Doors business saw virtual shutdown with Q3 production at just 42 nos (-100% YoY) and 9M volumes plunging 93% to 1,914 nos, indicating strategic exit or restructuring.

Energy Division Provides Stability

Hydro Power generation grew modestly 2% YoY to 17.00 MU in Q3 and 6% YoY to 33.14 MU for 9M FY26, offering steady non-cyclical revenue amidst segment volatility.

NCL Industries demonstrates cement segment resilience (62%+ of core volumes) supporting overall stability, while diversified businesses undergo recalibration. RMC and cement boards declines suggest market share battles and pricing pressures, with Doors segment potentially de-emphasized.

The 3-5% cement growth trajectory aligns with India's infrastructure capex cycle, positioning NCL favorably for FY26 execution despite diversified segment restructuring needs.

Shares of NCL Industries Limited was last trading in BSE at Rs. 210.05 as compared to the previous close of Rs. 211.60. The total number of shares traded during the day was 1257 in over 45 trades.

The stock hit an intraday high of Rs. 211.60 and intraday low of 207.10. The net turnover during the day was Rs. 263230.00.

Source : Equity Bulls

Keywords

NCLIndustries INE732C01016 Cement CementProducts Q3FY26 BusinessUpdate