Shri Keshav Cements & Infra FY26: Revenue Jumps 33%, the Plant Triples, and the Bottom Line Slips to a ₹6.53 Cr Loss
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1 — At a Glance
FY26 handed Shri Keshav Cements two numbers that sit oddly together. Revenue climbed 32.8% to ₹161.31 crore — the fastest top-line growth the company has posted in years. And the year still closed in a net loss of ₹6.53 crore, a shade wider than FY25’s ₹6.17 crore. Growth arrived; profit did not follow it through the door.
The gap has a physical location. During the year the cement plant expanded from roughly 0.36 million TPA to 1 million TPA, commercial operations starting 29 November 2025. Capital work-in-progress of ₹139.22 crore moved onto the books as fixed assets — net block jumped from ₹195.55 crore to ₹347.36 crore — and depreciation rose from ₹11.92 crore to ₹18.78 crore, per the data sheet. A near-tripled plant carries near-tripled fixed costs, and those costs landed before the extra volume did.
The March quarter tells the story in miniature: revenue of ₹47.26 crore, up 23% year-on-year, yet a net loss of ₹9.76 crore. The auditor signed off with a qualified opinion, repetitive since FY2022-23, over an ₹859.63 lakh GST matter still under investigation. Net worth eroded from ₹96.26 crore to ₹89.68 crore.
A company can grow revenue and shrink equity in the same twelve months. This is what that looks like.
2 — Introduction
Incorporated in 1993 and formerly Katwa Udyog Limited, Shri Keshav Cements and Infra runs an integrated cement-and-solar operation out of Karnataka. The cement plants sit in Bagalkot district; a 40 MW solar plant sits at Koppal. The company sells cement across North Karnataka, Coastal Karnataka, Goa and parts of Maharashtra under three regional brands — Jyoti Power, Jyoti Gold and Keshav Cement, the last positioned as premium.
The defining event of the recent period is the capacity expansion. The new kiln commenced operations in March 2025, and the enlarged 1 million TPA line reached commercial operations in late November 2025. A ₹45.98 crore preferential fundraise, sourced from the public, part-funded the project.
Two governance items also date this period. The company secretary resigned effective January 2025, and independent director Radhika Dewani resigned effective end-August 2025, citing pre-occupation. In September 2025 the 32nd AGM approved a change to the objects clause, adding energy, renewable fuels and fuel-station businesses.
3 — Business Model: WTF Do They Even Do?
Two engines, unequal in temperament. Engine one is cement — limestone in, clinker out, bags sold to dealers and builders across a compact regional footprint. Engine two is solar: 40 MW at Koppal, of which management describes roughly 25 MW as captive (running the cement plants) and about 15 MW sold to the grid.
The quirk worth noting is that in FY26 the smaller engine did a lot of the pulling. On the segment results filed with the March numbers, the cement segment posted a full-year profit of ₹8.05 crore on ₹136.38 crore of revenue, while solar contributed ₹1.45 crore on ₹13.88 crore. But zoom into the March quarter and the cement segment swung to a ₹4.11 crore loss, while solar stayed positive. The solar plant is the ballast; the cement plant is the sail catching whatever wind the South Indian pricing market provides.
Management frames solar as the reason breakeven utilisation is low — captive green power removes the largest variable cost most cement makers carry. That is the model’s actual differentiation: not the cement, which competes with everyone, but the electrons underneath it.
Does a low breakeven help a plant running at roughly a third of capacity, or does it just make the wait more affordable?
4 — Financials Overview
Figures are consolidated, in ₹ crore. The latest period is the quarter ended March 2026.
Metric
Latest Q (Mar’26)
YoY (Mar’25)
QoQ (Dec’25)
Revenue
47.26
38.43
37.93
Operating Profit
6.71
7.62
10.50
PAT
-9.76
-4.41
-0.54
EPS (₹)
-5.57
-2.52
-0.31
Revenue grew 23% year-on-year and 25% sequentially, yet operating profit fell against both comparatives, and OPM compressed to 14.2% from 27.68% the prior quarter. The March quarter carried the full weight of the expansion: quarterly depreciation rose to ₹7.78 crore from ₹4.12 crore the prior quarter, per the data sheet. Higher revenue, thinner operating margin, a heavier depreciation line — the loss widened to ₹9.76 crore.
From the February 2026 concall: management described the margin
