NCL Industries Q2 Cement Production and Dispatches Surge 22% to Over 7.8 Lakh Tonnes

South India-based cement and building materials manufacturer NCL Industries has released its operational performance update for the second quarter of the financial year 2026-27 (Q2 FY27), clocking a double-digit expansion in its primary manufacturing vertical. The company's cement output and dispatches both increased by 22% year-on-year, providing a strong operational buffer against persistent softness in allied divisions.

Cement Segment Drives Volume Growth

During the July–September 2026 quarter, NCL Industries produced 7.81 lakh tonnes of cement, compared to 6.40 lakh tonnes in the corresponding quarter of the previous fiscal year, registering a 22% increase. Cement dispatches mirrored the output pace, advancing 22% year-on-year to 7.79 lakh tonnes from 6.40 lakh tonnes in Q2 FY26.

The volume momentum also carried through to the company's first-half totals. On a cumulative basis for H1 FY27, total cement production increased 16% year-on-year to 14.74 lakh tonnes, while cement dispatches grew 15% to 14.60 lakh tonnes.

Divergent Trends Across Non-Cement Verticals

While the core cement business recorded robust expansion, performance across NCL Industries' diversified operations remained mixed:

• Cement Boards: Production of cement boards grew 22% year-on-year during Q2 FY27 to 13,071 tonnes, up from 10,673 tonnes. However, board dispatches during the quarter slipped 3% to 13,953 tonnes compared to 14,346 tonnes a year earlier. On a half-year basis, board production declined 12% to 24,710 tonnes, although H1 dispatches rose 6% to 27,076 tonnes.
• Ready-Mix Concrete (RMC): RMC production and sales dropped 10% year-on-year in Q2 FY27 to 59,882 cubic metres compared to 66,185 cubic metres in Q2 FY26. For H1 FY27, RMC sales saw an 18% year-on-year decline.
• Hydropower Division: Electricity generation from the company's small hydropower plants experienced the steepest decline, contracting 43% year-on-year to 9.22 million units (MU) during Q2 FY27 against 16.14 MU logged in the year-ago quarter.

Market Context and Stock Movement

The operational data underscores persistent demand for regional infrastructure and commercial housing construction, sustaining volume gains for regional cement manufacturers. Nonetheless, weaker demand in commercial real estate projects appeared to dampen RMC consumption, while variations in hydrology weighed heavily on captive and commercial energy output.

Following the release of the operational statistics, shares of NCL Industries ended 2.28% lower at ₹160.20 on the National Stock Exchange (NSE) amid a broader market correction. Investors will be tracking realization trends and input cost pressures, particularly fuel and power, when the company officially discloses its complete unaudited financial earnings for the quarter.

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