NCL Industries Q2: Net Profit Slips 7.5% YoY To ₹19.96 Cr; Approves Phases II & III Of 130 MW Solar-Wind Project
Cement is a heavy, thin-margin business where two things decide who wins: how cheaply you can make it and how close your plant sits to demand. Power and fuel take a big bite out of the cost, so producers keep hunting for cheaper energy. At the same time, demand is shifting toward regions where housing and infrastructure are still catching up.
The Nifty 50 was trading at 25,197.60, down 0.40%. Meanwhile, Sensex also fell 0.29% to 81,666.59 on Friday. Meanwhile, shares of NCL Industries Ltd. were trading at Rs. 168.90, down 0.94 percent from previous close of Rs. 170.50. The stock opened at Rs. 168.40 and reached an intraday high of Rs. 170.00 and low of Rs. 168.00. The company currently has a market capitalization of Rs. 764 crores.
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What's the news
At its board meeting on 12 November, NCL Industries approved its Q2 FY27 results, with unmodified limited review reports from the auditors. It also cleared Phase II and III of its solar and wind project at Tuticorin in Tamil Nadu. With the 50 MW first phase approved in April, the full 130 MW project is now cleared at Rs 987.17 crore, funded through debt and internal accruals. Commissioning is scheduled for February 2028.
The power will first serve the company's own plants, and surplus units will be sold through power exchanges and third-party PPAs. Final grid connectivity has already come from CTUIL. Separately, the board gave in-principle approval to approach the Odisha government for a new cement plant. That proposal is at a preliminary stage, with no land allotted and no binding commitment made.
Financial & Business analysis
Looking at the quarterly results of NCL Industries, the company's consolidated revenue from operations increased by 7.94 percent YoY, from Rs. 407.88 crore in Q2 FY26 to Rs. 440.28 crore in Q2 FY27, and increased by 11.33 percent QoQ from Rs. 395.48 crore in Q1 FY27.
In Q2 FY27 NCL Industries consolidated net profit decreased 7.51 percent YoY, reaching Rs. 19.96 crore compared to Rs. 21.58 crore during the same period last year. As compared to Q1 FY27, the net profit increased by 14.84 percent YoY, from Rs. 17.38 crore.The basic earnings per share stood at Rs. 4.41 as against Rs. 4.77 recorded in the same quarter in the previous year, FY2026.
Cement is the heart of NCL, contributing roughly 85% of segment revenue this quarter. Building boards added about 8% and ready-mix concrete about 6%, while the energy division was under 1%. A cement maker has no order book to show off. The business runs on dealer demand and plant utilisation, so the smarter question is where the capacity and the power sit.
That is where the new plans matter. The solar-wind project takes a tiny energy arm, today 15.75 MW of hydro running at 28% utilisation, and makes it relevant to the core business. The surplus sales could add a second earnings stream. Odisha would give NCL a foothold in the east, away from a crowded south, though it is early and execution risk is real.
Industry context
ICRA expects India's cement volumes to grow 6 to 7% in FY27, after about 8.6% in FY26. The industry is adding 42 to 44 million tonnes of capacity this year, with utilisation holding near 70 to 71%. The southern region has capacity overhang, which explains why a southern producer would look east.
Power and fuel make up roughly 25 to 35% of cement manufacturing costs, so green power matters. ICRA expects major producers to lift green power capacity from about 4 GW in March 2026 to 5.8 to 6 GW by March 2028. At a 25% green replacement level, it estimates savings of Rs 75 to 80 per tonne.
About NCL Industries
NCL Industries is a Secunderabad-based company, incorporated in 1979 and listed on BSE and NSE. It makes cement, building boards and ready-mix concrete, and also runs hydro power projects. It operates limestone mines at Mattapally, Gundlapally and Sulthanpur. Its subsidiaries include Tern Distilleries Private Limited and Vishwambar Cements Limited.
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