Keshav Cement: Ambitious Targets for Sustainable Expansion

Ashwin Thakker

— 2 min read
  • Sales Outlook: Targets 45% cement capacity utilization for FY’26, scaling to 55-60% in FY’27 and 70% by FY’28. Anticipates increased cement prices by FY’26 end due to robust demand.
  • Margin Outlook: Projects FY’26 EBITDA between INR 55-60 crores, with margins of 25-30%. Aims to achieve INR 100 crores EBITDA in FY’27 at 65-70% utilization.
  • Diversification & Debt: Plans for further solar capacity addition (30 MW) and establishment of a Ready-Mix Concrete (RMC) plant. Forecasts INR 70 crores in debt repayment over the next three years, primarily through internal accruals.

Shri Keshav Cements & Infra Ltd. reported strong Q1 FY’26 results, with total income up 32.53% year-on-year and EBITDA margins at 25.5%. This positive start underpins the company's ambitious forward-looking guidance, focusing on capacity optimization, margin expansion, and strategic diversification into renewable energy and Ready-Mix Concrete.

Cementing Future: Capacity and Margins

Shri Keshav Cements targets robust growth, projecting cement capacity utilization to rise from 36% in Q1 FY’26 to 45% for FY’26, and further to 55-60% in FY’27, reaching 70% by FY’28. The newly commissioned kiln is expected to significantly enhance profitability. The company revised its FY’26 EBITDA guidance to INR 55-60 crores, maintaining 25-30% margins. Management aims to elevate EBITDA per ton from the current INR 365 closer to the Southern region's INR 560 average, anticipating strong performance in Q3 and Q4.

“We are expecting EBITDA of around INR55 crores to INR60 crores this year,” shared Mr. Venkatesh Katwa, Chairman and Executive Director.

Strategic Diversification and Debt Management

Beyond cement, Keshav Cement’s solar power segment is a strong EBITDA contributor, with discussions for an additional 30 MW capacity. The company views renewable energy as a key future direction, including potential for cheaper hydrogen. Plans for a Ready-Mix Concrete (RMC) plant are advancing, aimed at improving net realizations and boosting turnover post-cement stabilization. Financially, Keshav Cement prioritizes debt reduction, forecasting approximately INR 70 crores in repayments over the next three years, with FY’26’s INR 25.8 crores being the highest liability, confident in leveraging internal accruals.

Keshav Cement's Q1 FY’26 results set a positive tone for its ambitious future. With strategic capacity ramp-up, strong margin outlook, and diversification into solar and RMC, the company is poised for sustainable growth. Prudent debt management further strengthens its financial position, underscoring a disciplined approach to expanding its market presence and profitability.

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