SHRI KESHAV CEMENTS AND INFRA LIMITED (BSE: 530977) Q3 2026 Earnings Call dated Feb. 16, 2026
Corporate Participants:
Venkatesh Katwa — Chairman & Executive Director
Analysts:
Harshil Ghanshyani — Analyst
Anurag Jain — Analyst
Sakshi Shinde — Analyst
Pooja Mishra — Analyst
Raj Shah — Analyst
Vidhi Jain — Analyst
Mahesh Sheth — Analyst
Vinod Shah — Analyst
Manthan Rastogi — Analyst
Tushaar Talwar — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Shri Keshav Siemens and Infra Limited Q3 and 9 months FY26 earnings call hosted by Kirin Advisors Private Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Harshal Ganshani. Thank you. And over to you, sir.
Harshil Ghanshyani — Analyst
Thank you. Good morning everyone. On behalf of KID Advisors, I welcome you all to the conference for Sri Keshav Simons and Intra Limited for 23 and 9 months FY26. From the management team we have Mr. Venkatesh Katwa. Chairman, Mr. V. Katwa Managor. I hand over the call now to Mr. Venkates s for the opinion. Over to you, sir.
Venkatesh Katwa — Chairman & Executive Director
Yeah. Good morning everyone and welcome to Shri KF Cement and Infra Limited’s quarter three and nine month FY26 earnings call. I sincerely appreciate your time and interest in joining us today. Sri Kesha Cement and Infra Limited is engaged in the manufacturing of cement and the generating and distribution of solar power in Karnataka. Our cement plants operate from Bagalkot district supported by 40 megawatt solar power facility at Koppal. Out of this, approximately 25 megawatt is utilized for captive consumption to meet the entire power requirement of our cement plants. While the balance 15 megawatt is sold in the market.
We serve North Karnataka, Coastal Karnataka, Goa and parts of Maharashtra through our established distributor and retail network. Before I move to present the company’s financial performance, let me briefly share our operational progress. With the new kiln now stabilized and operating consistently, our focus has been on improving the capacity utilization, strengthening supply chain efficiencies and deepening our market penetration across key regions. We continue to work towards expanding volumes, enhancing dealer engagement and ensuring better availability of our products. Our indicated solar operations provide a structural cost advantage enabling us to remain competitive while maintaining healthy operating margins.
These initiatives position us well to capitalize on steady demand from infrastructure, housing and commercial construction across our core markets. So let me walk you through our financial performance for Q3 and nine months. FY26. For the nine months ended FY26, the total income increased by 35.81% year on year to about 116.31 crores. EBITDA stood at rupees 29.28 crore reflecting a growth of 66.85% with EBITDA margin expanding to 25.68% and improvement of 454 basis points. PAD for the nine month period was 3.23 crores compared to loss in the previous year reflecting a clear turnaround in overall profitability.
Earning per share improved to Rs. 1.85 supported by strong utilization levels, disciplined cost management and enhanced operational stability. In Q3FY26, the company reported total income of 38.69 crores registering a growth of 33.22% year on year supported by improved realization and sustained cement dispatches. EBITDA for the quarter stood at 10.5 crores reflecting a growth of 63.1% while EBITDA margin improved to 27.68% compared to 22.9% in Q3 FY25 marking an expansion of 477 basis points. Cash profit stood at 4.03 crores which is an 89% jump. Year on year, the term debt reduced from 188 crores to 159 crores reducing by around 15% which will continue to do so.
In fact, the repayment obligation next financial year will reduce by around 16.4% owing to closure of 3 term loan. For in FY26. Cement continue to remain the strongest contributor to our performance both in terms of revenue and operating profitability. Higher dispatches, better stable operations have strengthened segment momentum through the quarter. With construction activity remaining steady across Karnataka, Goa and Maharashtra, our focus remains on leveraging this demand through deeper markets engagement, stronger channel relationships and enhanced brand positioning. Cement will continue to anchor our growth trajectory in the coming quarters. Looking ahead to the remainder of FY26, we will continue to prioritize disciplined execution of optimal utilization of assets and further strengthening of our dealer and retail network.
Our objective is to sustain operating momentum, improve margins through better leverage and enhance our market presence across existing and adjoining geographies. With steady cement demand and cost stability offered by our Caprisola power model, we believe we are well positioned to deliver consistent and sustainable performance. Before moving to the Q and A session, I would like to extend my sincere thanks to all our stakeholders, partners, customers and employees for their continued support and confidence in the company. Their contribution remains central to our progress. With this, I am pleased to open the floor for questions. Thank you once again for being with us today.
Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press Star and one on the touchtone telephone. If you wish to remove yourself from the question queue you may press star and two Participants are requested to use handsets while asking a question. Ladies and gentlemen will wait for a moment while the question queue assembles. Participants may press star and one to ask a question. The first question is from the line of Anurag Jain from Oakland Capital. Please go ahead.
Anurag Jain
Yeah, thank you for the opportunity. So sir, I wanted to ask what is the clinker to cement ratio currently and how will it improve post modernization?
Venkatesh Katwa
So currently clinker to. You know for one ton of clinker we are able to produce around 1.6 tons of cement. 1.6 to 1.8 tons. So we are expecting to reach around 1.9 to 2. Not in this quarter, maybe a quarter down the line from this point onwards.
Anurag Jain
Okay, answer. How much power cost savings annually come from 100 solar usage model?
Venkatesh Katwa
So directly solar presents almost 35 crore EBITDA if completely taken as an independent vertical. So my production cost is around, let’s say around if for 100% utilization of solar power is the question we had. So for around 6 floor units saving of around roughly about 4 and a half rupees would translate to around 25 to 26 crore actual savings coming from solar usage in the cost itself, in the operating cost.
Anurag Jain
Okay. And so will there be any risk to this solar generation efficiency due to any regulatory changes.
Venkatesh Katwa
As such? Like you know we have a regulatory benefits given to the solar plants which was commissioned in 2018 and those regulatory benefits will continue for three years for one plant and around seven years for another plant. As of now there are no regulatory challenges happening and I don’t foresee any kind of regularly changes, you know coming in future which could hamper our the cost structure. After a few years there are some charges which will be applicable but which is common for everyone all over India. So it won’t. It would be a common cost share by everyone and not specific to persons using practice only capture solar plant.
Anurag Jain
Okay, okay, that’s it from my side as of now. I’ll join back with you if I have any more.
Venkatesh Katwa
Thank you.
operator
Thank you. A reminder to all participants to press star and one to ask a question. The next question is from the line of Sakshi Chande from Shah consultancy. Please go ahead. You may unmute your line. Sakshi ma’. Am.
Sakshi Shinde
Yeah. My question is, is the company exposed to the price volatility from large players discounting strategy?
Venkatesh Katwa
Yes, to a large extent. Every cement player in the industry will be exposed to the challenges Faced currently by lot of consolidation. So you know I would try to address this question more by going into the southern market. See the south and East India regions experienced sharpest price corrections with the average cement price declining by 2 to 3% quarter on quarter in Q3 FY26. Cement demand was pretty much weak in the first half of Q3 due to extended monsoons and festive disruptions. But improved meaningfully towards the latter part of the quarter. In summary, Q3 FY26 South Based Manufacturing expressed experienced compressed margins with specialized, you know some top level players getting generating around 250 to 600 rupees EBITDA per ton.
Heavily impacted by over capacity and weak pricing in the southern market. So yes. So because the larger players are competing and there is aggressive pricing strategy used by some top players, it has to some extent impacted all the other players including us.
Sakshi Shinde
Okay, my last question is what competitive moat exists beyond the green energy usage.
Venkatesh Katwa
So the biggest strategic benefits our company has is which is in fact helping us to grow. In fact we grew at around year on year in quantity by around 32%. Whereas south struggled with -3% or -4% growth year on year. Now the biggest advantages what we have is we are in close proximity to the consumption market which reduces the logistic cost which has been our biggest competitive advantage to us. And also being located at the Karnataka Maharashtra border. So we have deviating purely being addressing only the southern market. And now in the Q3 we have entered the western market through coastal and southern Maharashtra.
And we have got a new access to these kind of markets which previously we were not addressing to also we have added GGBS granulated ground base lag as a product which is used by large national highway projects which is helping us to cross market into cement. So one biggest benefit as I would say right now which I do not see anyone having any other industry having in our region is the addition of GGBS as a product. So once the customer uses a product it is a natural inclination to buy our other products which is cement.
So these are the strategic advantages we have right now which is helping us to compete and growing at a faster pace compared to the southern market averages. Thank you, Sakshi.
Sakshi Shinde
Thank you sir.
operator
Thank you. The next question is from the line of Pooja Mishra from JK Capital. Please go ahead. Pooja Ma’, am, you may unmute your lines.
Pooja Mishra
Hello.
operator
Yes, you’re audible.
Pooja Mishra
Yeah. Okay. Yeah. So I have few questions with me our why on why total income growth is around like 35%. Even if it has grown. So what is the reason behind this negative? In part.
Venkatesh Katwa
So I did not understand the last time. Last. Yes, there is a growth of around 33% in top line year on year. EBIT also there’s a growth of around 53% in absolute terms. So the growth is mainly driven by the factors like our new kiln is being stabilized and you know being solar means that we have a high dose of fixed cost compared to variable cost. So every increase in the. Every increase in the dispatches is giving us a higher contribution margin. And which is what I mentioned in addressing the previous question. Even though the southern markets are barely having minus 2 or minus 3% growth year on year, we delivered 32% growth only because of aggressive marketing and addition of few products which is helping us to, you know, boost our cement sales too.
Pooja Mishra
Yes, correct. And in quarter we reported a loss even though. Yeah.
Venkatesh Katwa
Talking about Pat.
Pooja Mishra
Yes, yes, I’m asking about that.
Venkatesh Katwa
So the reason why we it shows negative is because there is something called as deferred tax liability which appears because of a huge difference in the depreciation on the books and on as per income tax which is basically an India’s adjustment but not a cash expense as what it portrays. In fact it is an advantage to the company because of that there is a huge, you know, gas tax liability reduced because of that is the kind of a promotion given by the, you know, by the government. You would say otherwise. Actually it is not a negative part.
It is only because of certain non cash regiment figures what we put duty India’s requirements, it appears to be negative.
Pooja Mishra
Fair enough. Also I have few more questions like what was Cement volume growth in 9:1 FY26 versatile industry growth specifically in Karnataka.
Venkatesh Katwa
So the data that I have is only for the pure southern region like Karnataka and Telangana. So the, the data that I have right now with me is on volumes. There is even though there is a negative growth in EBITDA, the volume there is about 4% growth for Southern markets. But KCF Cement has performed at 32% growth in volumes.
Pooja Mishra
Okay. And can you share blended realization per ton trains over the last three or four quarters.
Venkatesh Katwa
So blended realization has remained almost stable. Like if I compare from Q3FY25 to Q3FY26 it has hovered between 3300 to 3460. That peaked out in Q2 and again it has come back to around 3353,400 right now. So absolute CAGR growth in naked cement rates is hardly 1%. That is again mainly because of you know, southern market showing over capacity and compression in the margins. In fact this quarter three with the increased sales we would expect we would have expected a higher profit margins. But then petcoat prices increased almost 20% year on year which was not very much expected.
Pooja Mishra
Okay, and what is the trade versus non trade sales mix and how does margin differ between the 2?
Venkatesh Katwa
So trade vs non trade in our case is for non trade. When we talk about direct to the consumers the prices may be a 2 or 3% difference. Otherwise there’s not significant change. Because if the non trade, if they can find the better prices they would go for outside market itself. Being a small plant with a small capacity. No, we have not kept a very substantial difference. A non trade typically will be 1 or 2% lesser.
Pooja Mishra
You know, so that was my last question. Also I’m joining a concord for the first time. But I keep hearing that you regularly, you know, host concourse even. Even if there’s no like positive part which is good. This shows your sincerity to us investor. Good luck. Looking forward.
Venkatesh Katwa
Thank you. Pooja Appreciable.
operator
Thank you. Participants may press star and one to ask a question. The next question is on the line of Raj Shah from Shah Ventures. Please go ahead.
Raj Shah
Yeah, hi, good morning. So basically what happens to margins if cement prices decline by 5 to 7%?
Venkatesh Katwa
Yeah, good morning Raj. I couldn’t get the question market what shift?
Raj Shah
Yeah, so I repeat my question. What happens to margins if cement prices decline by 5 to 7%?
Venkatesh Katwa
So it’s, you know, typically what we would see in these industries with 5 to 7% decline, it would be a hard hit for any cement industry. But in general in my case because of high usage of green power, almost 100% of green power, you know, with the current structure, even if you look at it in the past, performance with less than 30% capacity utilization or 31%, 32% capacity utilization, we are delivering a healthy EBITDA per ton. Of course it would impact 7% reduction in prices will mean it will chop off the EBITDA to that extent.
But in my case the impact is little lesser only because we have a, you know, renewable backup which is generally not the case in all the other competing cement plants in our region or outside.
Raj Shah
Okay, and can you also tell us about that? How vulnerable is the company to coal pet coke prices spikes before alternative fuel stabilize?
Venkatesh Katwa
Very good question. So right now we are hundred percent dependent on fossil fuels like petroleum coke and petcoke. Although the management is considering to look at AFR once a plant stabilized to A certain capacity which might take another two or three quarters. So yes, pretty much most of the cement plants in the country are subject to the variances of this the fuel prices and is going to impact everyone in a similar manner. Except for those who have, you know, put up efr. But also EFR does not replace the fuel cell fuel completely. I mean the most successful plant would have reached around 20, 20% of their fuel requirement through EFR.
But yes, pretty much as at this point in time, if you know coal prices very, very, very high this, that way it will impact us more severely than the one who has got an EFR at this point in time.
Raj Shah
Okay, and I want to know about the ROC as well the ratios part. If the capacity utilization remains stuck at 65% then what will be the impact on ROCE?
Venkatesh Katwa
No, right now we are hovering around 31% capacity utilization because we just started our plant this, you know, this year itself. So at 65% our return on capital should be significantly higher. I mean assuming that, you know, the prices remain the way we are looking at it right now, nothing exchanges if we increase this thing or ROC is expected to at least increase by 25 to 30%. And I think we should be in the range of 20% plus mainly because again we have a good solar plant. In fact, my term debt is reducing, as I mentioned in my opening remarks.
Our term debt is reduced from 188 crores to 159 crores. The reduction in 15%. And very importantly three terminals are getting closed this year and next year my repayment obligation is reducing by around 17%. So you know, as we keep moving, as this debt which is, which is significantly higher on solar assets keep coming down, my average cost of power generation will keep coming down and we will see a very high percentage of roc, you know, going forward.
Raj Shah
Okay, that’s great. Can you also explain about that? What contingency plans does management have in place? If the like plant capacity expansure expansion or ramp up takes longer than expected, then what would be the approach of management?
Venkatesh Katwa
So as such the, you know, even at 31, 32% if we are able to deliver this kind of an ebitda, in all probability, even if nothing happens, we will maintain the status quo the room. Our cash generation will be sufficient to cover all the debt repayment obligations and everything. Having said that contingency would mean like sale of power is not going to stop irrespective of whether cement goes up and down. Because power is a continuous requirement across all the industries and our production Cost last month in January was 1 rupee 30 paisa or so and it will keep going down by the by, you know, by end of end of FY27, we expect our price of power to go down less than one rupee, whereas we’re selling at six rupees.
So we have something, a solar plant which is generating cash which will take care of any kind of contingency or academic. Even if it is, I think we’re pretty held up on having that asset which is going to take us through the rough patches which it has already shown during last couple of years. If you look at last couple of years, even though Cement by itself performed very badly, company continued to deliver a certain EBITDA as well as cash profits and covered all the recruitment obligations on time.
Raj Shah
Okay. So yes, thank you so much sir for giving us the insight about much more about the business. So yeah, that’s all from my side. Thank you.
Venkatesh Katwa
Thank you guys.
operator
Thank you. A reminder to all participants to press star and one to ask a question. The next question is from the line of Vidhi Jain from Apex Capital. Please go ahead.
Vidhi Jain
Hello?
operator
Yes ma’, am. You’re audible.
Vidhi Jain
Okay. Hi sir. So can you break down your receivables between institutional customers and dealer channels?
Venkatesh Katwa
So right now as we speak, you know, we are increasing the institutional bias a little higher compared to Q3. So I think we must have reached about 8 to 10% on institutional buying. Particularly institutional buying means National highway authority projects or RMC projects or anything which is directly B2B as opposed to retail. Maybe about 8 to 9% is what we would have reached by Q3 and it seems to be continually increasing too.
Vidhi Jain
Okay, and how do, like how do credit days differ between these segments? And has there be any recent change in collection cycles?
Venkatesh Katwa
Not significant because of aggressive marketing. You know, our receivable cycle has gone from 13 days to say about 17 to 18 days. That is mainly because of, you know, aggressive penetrating into the existing market, kind of offering more little discounts as well as payment terms and stuff like that. But overall it has not impacted significantly even with this strategy.
Vidhi Jain
So are you seeing any stress in dealer financing or the need to extend credit terms in the current environment or have collection days increased in the last two quarters and particularly specific region?
Venkatesh Katwa
No, southern region itself is showing a little higher collection days, but we are cutting down that in the, you know, particularly the new areas of market like coastal Maharashtra and southern Maharashtra where a lot of development work is happening. You know, the collection days are far lesser. So it is averaging out with the averages moving from 13 to 17 to 18 days. That’s all.
Vidhi Jain
So what is the minimum cash buffer or liquidity level Management is comfortable maintaining on balance sheet and do you have any internal policy in terms of month of operating expenses or debt servicing coverage?
Venkatesh Katwa
So cash flow as such is comfortable which is why you could see all the repayments are being done on time for the debt servicing. When there is we once we start reaching 50 plus utilization levels we’re expecting a lot of additional cash flows or residual cash flows which will go towards impairing the debt ahead of the schedule. There is a plan the management has. We’re expecting to improve our utilization level next year. So maybe end of next year or beginning of next to next year we will start impairing the paying the debt off ahead of the schedule.
But management is consistently thought that to reduce the debt whenever there is an opportunity to take care of it.
Vidhi Jain
Thank you sir. That’s all from my side.
operator
Thank you. The next question is from the line of Mahesh set from Riv Capital. Please go ahead.
Mahesh Sheth
Can you hear me?
Venkatesh Katwa
Yes, yes we can hear you.
Mahesh Sheth
Yeah. Wanted to know like our EBITDA margin expanded by around 450bps in 9 month FY26. So I wanted to know like how much of this improvement is structural versus cyclical.
Venkatesh Katwa
I would say the significant portion has come by structure only and not cyclical. If you look at year on year Q3FY25 my EBITDA per ton was minus 47 rupees per ton as opposed to around for Q3.397 rupees per tonne. This is excluding the benefits of solar altogether. But if I add solar benefit to the extent of, to the extent of what it has been utilized, my EBITDA per ton has increased from 246 in Q3 of FY25 to 8 and 35 in Q3 of FY26 registering a 240% growth. In spite of the prices remaining almost flat and also increasing the fuel prices.
In spite of increasing the fuel prices, in spite of my sales price remaining flat, EBITDA per ton increased significantly. Which pretty much indicates that structurally there has been a lot of improvement after we put up a new kill.
Mahesh Sheth
Okay, okay, okay. Got it. And like what will be annual OM cost for a 40 megawatt plant?
Venkatesh Katwa
But typically we are taking in the range of around 6 lakh rupees per megawatt. So 40 into 6 would be around 2 and 2.4 crores per year is is reasonable and we are seeing the same thing in vicinity of that year and year.
Mahesh Sheth
Okay, so 2.4 crore.
Venkatesh Katwa
Okay, 2.4 crores is what is and.
Mahesh Sheth
How much of solar revenue is locked under a long term agreement.
Venkatesh Katwa
So assess. The company has not signed a specific PPA with anyone because the solar plants have an incentivized by the government of Karnataka by which we could sell it in the open access without any, you know, regulatory charges or losses. So that strategy has worked out for the management and we are getting the best price possible in the market. We are allowed to sell almost every, you know, power consumer in the state. Which is why we’re getting a net realization based around 5 rupee 98 paisa currently. Of course it will change after two or three years, but for next two or three years, typically we will be in this range of net realization.
Mahesh Sheth
Okay. Okay. And can I also know like what is a degradation rate of solar output per year?
Venkatesh Katwa
So as per the engineers design, around 0.7% but we are seeing around 0.7 to 0.8% degradation happening.
Mahesh Sheth
Okay. Okay, got it. Thank you.
Venkatesh Katwa
Sure.
operator
Thank you. The next question is from the line of Vinod Shah from BS Ventures.
Vinod Shah
Hello, I’m audible.
Venkatesh Katwa
Yes.
Vinod Shah
Yeah, hi sir. So what is the like breakeven capacity utilization for the current capacity?
Venkatesh Katwa
So with the current capacity, with the kind of solar backup that I have, my break in point is probably the lowest in the industry. Maybe less than 20% because even at 30% we are able to make a substantial EBITDA and you know, the cash profits. So maybe 20 to 22% is where our breakeven point lies at these kind of prices of cement as well as the fuel.
Vinod Shah
Okay.
Venkatesh Katwa
And I can tell you easily that we will be the lowest in the industry.
Vinod Shah
Okay, that’s great. That’s great. And so like what is the current capacity utilization?
Venkatesh Katwa
31% in Q3 FY26.
Vinod Shah
Okay. And going forward, how do you see that like evolving?
Venkatesh Katwa
So we’re expecting to sign off this year by around 40% utilization. Maybe next year. We are targeting around 45 to 55% capacity utilization in case the market still remains compressed or you know, having challenges of over capacity. If there is a slight pull in the market, like you know, there is a in every department, if there is an improvement in the thing, we should be able to reach 60% effortlessly. So currently our challenge is not improving the capacity. Our challenge is because the market is very, very competitive. Our footprint is not growing as fast as, as what you know, we deserve to get in spite of all These challenges, the negative growth, negative growth by major suppliers for south base here we are still able to achieve 32% growth which indicates that had there been even a normal market, we should have been able to reach 50, 60% pretty efficiently.
Our cement capacity is not very significant. One million ton. And our consumption around the area where we supply is more than 30 million tons. So a slight pull in the market, a slight pull in the pricing would immediately, you know, increase our capacity utilization substantially.
Vinod Shah
Okay, and like let us say that we achieved higher utilization. Like 60, 70.
Venkatesh Katwa
Absolutely.
Vinod Shah
Yeah. So how much like a margin improvement we can say see and how will overall our profitability look?
Venkatesh Katwa
So with these kind of EBITDA margins, like assuming the same price around 800 or so, you know, with 60, 70%, you know, our EBITDA margin should grow almost by two times or maybe a little higher than that because most of the fixed costs will remain intact like employee benefits and everything else. Let’s say for example, by nine months our EBITDA has come to around 31.5 crores. So maybe this year we’ll sign off with 40 to 45 crores EBITDA which is assuming around 30, 31%, 32% capacity. At 60% capitulation we should be comfortable reaching around 90200 crores EBITDA.
Vinod Shah
Okay. And sir, like how much volume we sold in like Q3.
Venkatesh Katwa
So in Q3 around 78000 tons we have sold compared to 58960 tons in Q3 of FY25 registering around 32% growth.
Vinod Shah
Okay, that’s great. You mentioned the employee cost. So is it like do we see any impact of employment? The new wage code. So will there be like any, like any rise in employee cost?
Venkatesh Katwa
Generally not for cement plants because cement plants are generally considered to be an assets with a very high capital investment. It’s not very labor intensive plant. The impact is not going to be significant.
Vinod Shah
Okay, that’s also. Thank you.
Venkatesh Katwa
Sure.
operator
Thank you. The next question is on the line of Mantan Dustogi from Alpha Belt Avenues. Please go ahead.
Manthan Rastogi
Thank you sir, for the opportunity. Am I audible?
Venkatesh Katwa
Yes.
Manthan Rastogi
In the last calls we have also mentioned about rmcs. So are we moving ahead with that or. We will take a look at it at a later part in FY20.
Venkatesh Katwa
Probability? I don’t think so. We will. You know we thought we could consider it in Q4 but it might take another couple of quarters before we work on that. Now we were expecting cement dispatches to improve in Q3 and Q4 because you know Looking at a cyclical performance of a cement plant, there should have been an uptick in the demand as well as our utilization. But that didn’t happen like expected. In fact, most of the plants registered negative growth in EBITDA in the south and very minor positive growth due to focus on in volumes. So what the management is of the opinion is we will wait for some more time till we reach say at least 50% plus capacity utilization then look into RMCs.
But for the sake of RMC, the company has already purchased the land. We are pretty sure once some positive figures start flowing in from cement vertical, RMC is going to be immediate next step.
Manthan Rastogi
Okay, and you mentioned your purchase the land rate. So what’s the amount that we have spent on that and if any, what is our selection?
Venkatesh Katwa
Spent on what? Coming in with the question, I lost it from this.
Manthan Rastogi
You mentioned you have already purchased land in rmc.
Venkatesh Katwa
Yes, we have purchased one land to set up an RMC project in in a city called Belgium. It’s in South India, north of Karandaka is, you know, so pretty much its population is around 10 lakh and our corporate office being in this town, we thought we would model the first project in Belgram so that once the once the project takes off and the nuance of the business is understood then we could expand across southern Maharashtra Go and other parts of North Karnataka. But RFC has got a huge chest. Currently we are supplying cement to many RMCs.
It would add to our existing sales and in fact in future it would be more beneficial for the company to sell through RMC because RMC does not have or has got a very minimal price arbitrage difference between the top players or any RMC player. Unlike in cement where cement brand is visible on the back, the price arbitrage is pretty significant.
Vinod Shah
Yes. So one more question from my end. We have seen lot of consolidation in the southern market for cement plant. So are we not seeing any price improvements in that region? Or you think like that could be the situation when the demand recovers.
Venkatesh Katwa
The management was expecting the consolidation period is over in Q2 of FY26, Q1 or Q2 F1.6 consolidation is pretty much over and we were expecting better pricing discipline. But what we have seen is technically in Q3 the prices should have improved, which has not. If you look at the past history of three to four years, which has not. So there is an intense competition between the top players to capture the cement having a cement market which is why it is causing a price war particularly in the south region which houses the largest capacity in India.
So south typically holds around 30% of the India’s cement market for production. And which is why. Yeah, so which is why we would expect some kind of a demand growth in the southern regions which will immediately turn into price discipline, which is what is needed in this industry right now.
Manthan Rastogi
Right. And so you mentioned in the earlier call that our location is kind of a beneficial for us. So can we sell our cement in Pune region also? Because I think there is a lot of construction that is going in the city and the demand seems to be good.
Venkatesh Katwa
Pune, what happens? Even though we are supplying to some peripheral areas of Pune town, the logistic cost is almost around 1600 rupees per metric tonight. But Pune is still a good market. We are opening up over there. Pune, Ratnagiri, Sawanpuri regions of Maharashtra are showing a lot of improvement because we would be one of the closest cement plants to these regions, which is why we are able to easily penetrate. Our nearest competitors are also reaching out over there with a much higher logistic cost. So as we keep moving, we are seeing higher penetration in MARSA regions because of being proximity to the area.
And that is helping us drive the growth at this point in time. Otherwise depending purely on southern based market would not have allowed us to reach this kind of a growth.
Manthan Rastogi
And as we’ve increased the capacity, are we seeing any issues in procuring limestone as we do not own any mines?
Venkatesh Katwa
Not at all. Because we are the only purchasers of limestone in that area with around 20 to 30 suppliers. So at this point in time, we are well poised with the limestone requirement and the availability of the basic raw material.
Manthan Rastogi
And even if we move to maybe 70% utilization, you do not see any issues with limestone?
Venkatesh Katwa
Not at this capacity? Not at all.
Manthan Rastogi
Okay. Okay. And rvr. So are we also looking at a mixture cement like PSC where we mix lag or fly ash, etc.
Venkatesh Katwa
We are in fact, most of our cement goes in PAC sector only. So PAC is the order of the day. Almost all the cement plants supply most of the product in PSC format only. Of PC format is used only by specific requirement say for RMC or cement articles. Otherwise pretty much for all the projects like national highway or the grand scale projects can go with pse, which is what we are supplying with right now.
Manthan Rastogi
So from where we are buying flag or fly ash.
Venkatesh Katwa
So fly ash we are purchasing from one thermal power plant near our cement plant which is known as Raichu thermal power plant. But flyers requirement is not very significant slack. We are buying from you Know Kalyani gsw? There are. There are two or three plus we have supplied from Goa also. There are four to five people. Are you from Vedanta? From Goa. So we have four to five sources we are purchasing slack from.
Manthan Rastogi
Thank you so much. No more questions.
operator
Thank you. The next question is from the line of Tushar Talwar, an individual investor. Please go ahead.
Tushaar Talwar
Hi. Can you give me a break? Sorry. Hi. Can you give me a breakup of the debt repayment schedule and what are the quantities and when it’s happening?
Venkatesh Katwa
The debt repayment schedule is what you’re asking for?
Tushaar Talwar
Yes.
Venkatesh Katwa
So FY26, our obligation is around 29 crores. Out of which almost 24, 25 courses already done taking care of this or not? 26. 27 crores already repaid. Another 2, 3 crores by next month in March. In FY27 audit obligation is about 23 crores and FY29. So in the next year the debt depreciation about 19 crores. Typically. Mainly because three terminals have closed on this year or will close on this year.
Another one will close on next year. And it keeps going from that point onwards.
Tushaar Talwar
All right. So thank you so much. That’s all from my side.
Venkatesh Katwa
Thank you.
operator
Ladies and gentlemen. You may press star and one to ask a question. Ladies and gentlemen, we take that as the last question of the day. And now I would like to hand the conference over to Mr. Harshal Ghanshani for the closing comments.
Harshil Ghanshyani
Yes. Thank you everyone for joining the conference for obstructive cements and Intra limited. If you have any queries you can write us@researcher.com Once again, thank you everyone for joining the conference call.
Venkatesh Katwa
Thank you everyone.
operator
On behalf of Kiran Advices Private Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.