The Karnataka-based manufacturer recorded a 35.81% year-on-year increase in total income for the nine months ended December 31, 2025. Following a ₹45.98 crore preferential fundraise, the company is transitioning toward a 1 million MTPA capacity target through the commissioning of modernized kiln infrastructure.
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Shri Keshav Cements and Infra Limited (BOM: 530977) reported a significant improvement in its financial results for the nine months (9M) ended December 31, 2025, with total income reaching ₹116.31 crore compared to ₹85.64 crore in the previous year. The company successfully pivoted from a net loss to a profit during the 9M period, supported by enhanced operational efficiencies and stabilized kiln operations. Despite this, the company reported a standalone net loss of ₹0.54 crore for the third quarter (Q3 FY26), highlighting ongoing volatility in quarterly performance.
Key Development
The primary driver of recent developments is the completion and commissioning of a new kiln in March 2025, which forms part of a broader expansion and modernization project. To fund this initiative, the company raised ₹45.98 crore through a preferential issuance of equity shares and warrants to private and institutional investors. This capital is specifically earmarked to increase total cement capacity from 350,000 MTPA to 1,000,000 MTPA, representing a significant scale-up from its current 800 TPD (tons per day) output.
Financial Performance
For 9M FY26, the company reported an EBITDA of ₹29.28 crore, representing a 66.85% year-on-year increase. The EBITDA margin expanded by 454 basis points to 25.68%. Net profit for the 9M period stood at ₹3.23 crore, compared to a loss of ₹1.76 crore in 9M FY25.
In the Q3 FY26 period, revenue from operations reached ₹37.93 crore, up from ₹28.10 crore in the same quarter last year. However, increased finance costs of ₹6.37 crore and higher depreciation of ₹4.12 crore contributed to the quarterly net loss. The company’s book value per share as of FY25 was ₹54.97, while the debt-to-equity ratio stood at 2.43.
Business Model and Market Situation
Shri Keshav Cements operates under a dual business model consisting of cement manufacturing and solar power generation. The company’s cement plants are located in the Bagalkot district of Karnataka, producing brands such as Jyoti Power, Jyoti Gold, and Keshav Cement. It maintains a presence in North Karnataka, Coastal Karnataka, Goa, and parts of Maharashtra through a network of over 600 retail touchpoints.
A unique aspect of its operations is the 100% use of green power. The company owns a 40 MW solar plant in Koppal, of which 25 MW is used for captive consumption, significantly reducing power costs by an estimated 75%. The remaining 15 MW is sold to external consumers.
Where Does Shri Keshav Cements and Infra Limited Stand Today?
Currently, the company is in a phase of capacity transition and cost optimization. The cement segment remains the dominant revenue contributor, providing ₹96.42 crore of the total 9M FY26 revenue, while the solar segment contributed ₹9.87 crore. Operational stability is cited as being “firmly in place” following the recent technical upgrades. The company is currently utilizing approximately 70.62% of its cement capacity and 100% of its solar capacity.
Business Outlook & Strategy
Management’s strategy focuses on cost reduction through modernization. The installation of high-efficiency equipment is expected to reduce fuel consumption costs from ₹1,300 to ₹650 per metric ton of cement. Future priorities include:
• Alternate Fuel Integration: Designing kilns to process municipal waste and bagasse.
• Geographic Expansion: Targeting larger markets such as Pune, Bangalore, and Kerala once the variable cost per ton is lowered.
• Productivity Gains: Aiming to produce 2.5x to 3x more cement per ton of clinker through high-efficiency vertical roller mills.
Regulatory Milestones and Segment Updates
The company holds several international certifications, including ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018. Segmental Data for 9M FY26:
• Cement: Revenue of ₹96.42 Cr; Segment Result (Profit) of ₹12.17 Cr.
• Solar Energy: Revenue of ₹9.87 Cr; Segment Result (Profit) of ₹0.38 Cr.
• Petrol and Diesel: Revenue of ₹7.76 Cr; Segment Result (Profit) of ₹0.19 Cr.
An auditor’s limited review report for the period ended December 31, 2025, included a qualified conclusion due to an ongoing investigation by the Directorate General of GST Intelligence (DGGI) regarding a GST liability pertaining to previous financial years.
Sector and Macro Context
The Indian cement industry is the second-largest in the world, with demand projected to grow by 6-7% in FY25. Macro drivers include government initiatives such as Housing for All (PMAY) and the PM Gati Shakti National Master Plan for infrastructure. While the industry is fragmented, the top 20 companies control approximately 70% of production. Shri Keshav Cements operates as a regional player, leveraging the strategic proximity to high-CaO limestone deposits in North Karnataka.
Market Capitalization and Management Commentary
As of the latest reporting period, the company’s market capitalization is ₹290.71 crore, with 1,75,12,752 shares outstanding. Management commentary emphasizes that the current fiscal year represents a strengthening phase, with cost structures becoming more resilient and scalable.
Summary of Investment Rationale
Points which indicate several factors cited as rationale for stock consideration:
• Energy Self-Sufficiency: The 40 MW solar plant provides a substantial cost advantage and a recurring revenue stream from outsourced power.
• Capacity Scalability: The transition toward 1 million MTPA positions the company to capture a larger share of the real estate and infrastructure boom. • Improving Cash Flows: Operating cash flow increased from ₹23.21 crore in FY22 to ₹29 crore in FY25.