Q1 FY26 Production Decline Puts NCL Industries Stock Under Investor Radar
By Ankur Chandra | Published at: Jul 10, 2025 12:21 PM IST
Hyderabad, July 10, 2025 – NCL Industries Ltd (NSE: NCLIND) was under sell pressure today, its share dropping 3.64% to ₹215.00 at 11:15 am IST, following the company’s announcement of a wide-based decrease in production and dispatch volumes in Q1 FY26, ended June 30, 2025. Cement – its main business – recorded production lower by 5% YoY to 634,256 MT, while dispatches were lower by 4% to 628,384 MT.
Secondary businesses’ performance was even weaker: cement boards production fell 17%, and dispatches fell 41%; Ready Mix Concrete (RMC) sales fell 8%; and door production dropped an astonishing 75% over the year-earlier quarter. These operating issues, especially the sharp fall in ancillary segments, are of concern due to short-term pressure on margins and cash flows against a mixed environment of demand in the construction materials space.
Stock Snapshot (10-Jul-2025 11:15 am IST)
| Metric | Value |
|---|---|
| Current Price | ₹215.00 |
| Change (%) | -3.64% |
| VWAP | ₹219.24 |
| Intraday High/Low | ₹223.00 / ₹216.59 |
| 52-Week High / Low | ₹250.70 / ₹179.21 |
| Market Cap | ₹989.87 Cr |
| Volume (Shares Traded) | 1.75 lakh |
| P/E Ratio (Adjusted) | 32.25 |
| Industry | Cement & Cement Products |
Q1FY26 Production & Dispatch Report
According to its regulatory filing under Regulation 30 of SEBI (LODR) Regulations, 2015, NCL Industries reported YoY volume declines across cement, cement boards, RMC (ready-mix concrete), and doors segments.
Production and Dispatch Performance (YoY)
| Product | Q1FY26 | Q1FY25 | YoY Growth (%) |
|---|---|---|---|
| Cement Production (MT) | 6,34,256 | 6,69,016 | -5% |
| Cement Dispatches (MT) | 6,28,384 | 6,57,750 | -4% |
| Cement Boards Production (MT) | 17,432 | 21,048 | -17% |
| Cement Boards Dispatches (MT) | 11,159 | 18,832 | -41% |
| RMC Production & Sales (CuM) | 73,991 | 80,035 | -8% |
| Doors Production & Sales (Nos) | 1,610 | 6,537 | -75% |
| Energy (Hydro Power) (MU) | – | – | – |
Source: Company filing dated July 9, 2025.
Market Reaction & Analysis
The steepest drop was observed in the Doors segment – with a 75% YoY fall, followed by a 41% decline in cement board dispatches, raising investor concerns over demand trends and operational scale-downs.
The company’s free float market cap stands at ₹544.01 crore, and its P/E ratio of 32.25 remains elevated relative to the industry average, suggesting premium valuation amid weakening volume performance.
About NCL Industries Ltd
NCL Industries Ltd, listed on the NSE and BSE since April 3, 2007, operates in the Cement & Cement Products sector. Its diversified product line includes cement, ready-mix concrete, cement particle boards, doors, and hydro power generation. The company is headquartered in Secunderabad, Telangana.
Further developments and the company’s commentary during its Q1FY26 earnings call will be critical in understanding the underlying reasons for the volume contraction and its strategy ahead.
REF: https://nsearchives.nseindia.com/corporate/NCLIND_09072025192157_ProductionanddispatchesQE30062025filed.pdf
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