Keshav Cement: Scaling Up for a Profitable Future

Ashwin Thakker

— 2 min read

Key Facts on Outlook:

  • FY26 cement capacity utilization targeted at 45%, reaching 55-60% by FY27 and 70% by FY28.
  • Expected EBITDA for FY26 revised to INR 55-60 crores (from earlier INR 70-75 crores).
  • EBITDA margins for FY26 projected between 25-30%.
  • Solar power realization to remain stable at INR 5.9-6.0 per unit for FY26.
  • Highest debt repayment liability in FY26 (INR 25.8 crores), reducing to INR 20-21 crores in FY27.
  • Company is considering a new 30 MW solar capacity addition and an RMC plant post cement plant stabilization.

Shri Keshav Cements & Infra Ltd. reported a strong Q1 FY26 with total income surging 32.53% year-on-year to INR 41.4 crores and Profit After Tax (PAT) jumping 74%. This robust performance fuels confidence in the company's forward-looking guidance, focusing on enhanced capacity utilization, improved profitability, and strategic debt reduction for the current fiscal year and beyond.

Cementing Growth and Financial Outlook

Shri Keshav Cement's Q1 FY26 saw EBITDA per metric ton hit INR 365, a significant rise from under INR 100 last year. The company targets 45% capacity utilization for FY26, growing to 70% by FY28. Management revised its FY26 EBITDA guidance to INR 55-60 crores, with expected margins of 25-30%. While initial kiln stabilization affected Q1, strong performance is anticipated in Q3 and Q4. The company aims for EBITDA per ton to align with southern industry peers at INR 560 within two quarters. Strategic focus remains on deepening market share in existing regions and increasing higher-margin institutional sales.

Strategic Diversification and Debt Management

The solar segment contributed INR 7.8 crores to Q1 EBITDA, with realizations expected to stabilize at INR 5.9-6.0 per unit for FY26. A potential 30 MW solar capacity expansion is under consideration post cement plant stabilization. On the debt front, FY26 faces the highest repayment liability at INR 25.8 crores, with three term loans closing this year. Repayments are set to decrease to INR 20-21 crores in FY27 and less than INR 15 crores from FY28, managed primarily through internal accruals. Additionally, the company plans to establish an RMC (Ready-Mix Concrete) plant by Q3 FY26, aiming to utilize its own cement for enhanced profitability.

Shri Keshav Cement & Infra Ltd. is positioned for a growth-oriented FY26, backed by a strong Q1 performance. Despite initial operational adjustments, the company is on track to stabilize its expanded cement capacity, optimize margins, and strategically manage its debt. With plans for solar expansion and a new RMC plant, SKCIL demonstrates a clear, diversified path towards sustained profitability and market leadership.

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