Nuvoco Vista Corporation Ltd said its board has approved the setting up of a bulk cement terminal at Viramgam, Sachana in Gujarat. The proposed terminal will have a handling capacity of around one point five million tonnes per annum (mn tpa) and will include a dedicated railway siding. The facility is intended to improve unloading, storage and dispatch of both loose and packed cement.

The company said the rail connectivity and streamlined logistics are expected to position the terminal as a key distribution hub for the Gujarat market. The installation is aimed at reducing transit times and improving inventory turns while supporting distribution to trade and retail channels. The investment is presented as part of the company’s broader network optimisation.

The company indicated the project is expected to be commissioned by the financial year 2027-28. Nuvoco reported its highest-ever consolidated sales volume of 20.4 mn t in the year, representing a five per cent year-on-year rise. The firm said revenue and profitability also reached record levels, supported by improved realisations and operational efficiencies.

The premium product mix continued to strengthen and contributed 43 per cent to overall sales while the trade segment accounted for 74 per cent. Earnings before interest, tax, depreciation and amortisation saw a 35 per cent year-on-year increase for the full year. For the fourth quarter consolidated volume stood at six mn t, with EBITDA up six per cent year-on-year, making it the company’s most profitable quarter.

Nuvoco Vista Corporation Ltd is described as one of India’s leading cement and concrete manufacturers with a consolidated capacity of 25 mn tpa. The company offers cement, ready-mix concrete and other building materials and intends to use the Viramgam terminal to strengthen its regional presence.

Crisil Intelligence (CRISIL) released a report on April 13, 2026, indicating Indian cement manufacturers face margin erosion of 150–200 basis points this fiscal, reducing operating margins to between 16 per cent and 18 per cent. The firm noted that this represents a reversal from the prior year when margins expanded by 260–280 basis points. The analysis attributed the shift to rising input costs despite steady demand.

The report said that power and fuel, which typically account for about 26–28 per cent of production cost, are expected to increase by 10–12 per cent year on year, driven by higher prices for crude oil, petroleum coke and thermal coal. Brent crude was assessed as likely to trade between $82 and $87 per barrel, and industrial diesel prices rose by 25 per cent in March, raising logistics and procurement expenses. Such increases have therefore heightened cost pressures across the value chain.

Producers plan to raise selling prices by one–three per cent, which would put the average retail price of a cement bag at around Rs355–Rs360, according to the report. CRISIL’s director Sehul Bhatt was cited as saying that these hikes will at best offset a four–six per cent rise in production costs, leaving little room for higher profitability. The report added that intense competition and continual capacity additions constrain the extent to which firms can pass on costs.

Demand conditions remain supportive, with CRISIL projecting volume growth of six point five–seven point five per cent this fiscal on the back of accelerated infrastructure projects and steady industrial and commercial consumption. Nonetheless, the pace of recovery is sensitive to developments in West Asia, the speed of government infrastructure execution and monsoon performance. The agency noted that any further escalation in energy prices or delays in project execution would widen margin pressures.

Overall, the sector will continue to grow but with compressed margins as energy cost inflation outpaces the limited ability to raise prices. Investors and policymakers will therefore monitor both input cost trajectories and policy measures aimed at alleviating supply chain constraints.