Keshav Cement's FY26 Outlook: Growth, Margins, Debt Reduction

Ashwin Thakker

— 1 min read

Key Facts on Outlook:

  • Sales Outlook: Target 45% cement capacity utilization in FY26, aiming for 55-60% in FY27, and ~70% in FY28. Expecting 20-25% sales contribution from institutional buyers.
  • Margin Outlook: Revised FY26 EBITDA guidance of INR 55-60 crores. Anticipating 25-30% EBITDA margins for FY26. Projecting FY27 EBITDA to exceed INR 100 crores at 65-70% capacity utilization.
  • Debt Outlook: FY26 highest debt repayment liability at INR 25.8 crores, decreasing to INR 20-21 crores in FY27, and below INR 15 crores from FY28 onwards.

Shri Keshav Cements & Infra Ltd. reported robust Q1 FY26 results, fueling optimism for its forward guidance. The company aims for significant growth by optimizing expanded cement capacity, driving margin expansion, and systematically reducing debt, laying a strong foundation for future ventures in green energy and RMC.

Cementing Future Growth and Efficiency

Shri Keshav Cements outlines clear targets for its expanded cement capacity. The company aims for 45% utilization in FY26, rising to 55-60% in FY27, and around 70% in FY28. Stabilizing the new kiln by Q2/Q3 FY26 is key to efficiency. Management highlighted a jump from under INR 100 to INR 365 EBITDA per ton in Q1 FY26, with a goal to match the Southern region's INR 560 within quarters. The company plans to boost market share from 3-4% to 5-6% by aggressively selling within existing markets and increasing institutional sales.

Financial Outlook and Diversification Plans

Shri Keshav Cements projects FY26 EBITDA at INR 55-60 crores, targeting 25-30% margins. For FY27, EBITDA is expected to surpass INR 100 crores at 65-70% capacity. Debt reduction is a core strategy: FY26 sees the highest repayment liability at INR 25.8 crores, with three term loans closing, and debt set to decline in subsequent years. While no immediate new cement capex is planned, the company considers adding 30 MW solar capacity and establishing an RMC plant post-cement stabilization, indicating a diversified, green growth path.

Shri Keshav Cements' Q1 FY26 performance signals a strong trajectory. The company's clear guidance on capacity utilization, margin expansion, and disciplined debt reduction underscores its commitment to robust financial health. Future plans for solar and RMC diversification further solidify a path of sustainable growth and market leadership in a dynamic Indian infrastructure landscape.

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