Keerthi Industries reported a net loss of ₹7.14 crore for the quarter ended June 30, 2026, compared to a loss of ₹2.39 crore in the corresponding period of FY26. The decline was driven by a sharp contraction in revenue and ongoing operational challenges in the cement sector.

The company suspended its operations temporarily with effect from June 12, 2026, due to prevailing adverse market conditions and an unfavourable business environment. Management intends to recommence operations once conditions improve and activities become commercially viable.

Financial Performance

Revenue from operations fell 37.5% year-on-year to ₹19.11 crore from ₹30.58 crore in Q1FY26. Total income stood at ₹19.23 crore, against total expenses of ₹26.11 crore. The loss before tax from continuing operations widened to ₹6.87 crore from ₹4.02 crore in the prior year period.

The full-year FY26 audited results showed a net loss of ₹15.29 crore, which included a gain of ₹7.92 crore from discontinued operations following the slump sale of the Electronic Division to Hyderabad Bottling Co. Pvt. Ltd. for ₹36 crore in March 2026.

Balance Sheet & Going Concern

As of June 30, 2026, current liabilities exceeded current assets by ₹57.40 crore. The company has experienced delays in payments to certain overdue creditors. Independent auditors Brahmayya & Co. highlighted a material uncertainty related to going concern, noting that the financial statements are prepared on a going concern basis despite these deficits.

Management stated that losses are temporary, attributing them to lower operating volumes and industry conditions. Initiatives include monetizing non-core assets, such as sugar land disposal, and exploring funding avenues from financial institutions.

Board Actions & Executive Pay Cuts

The Board approved the unaudited results on August 14, 2026, and scheduled the 43rd Annual General Meeting for September 24, 2026. In response to financial distress, top executives agreed to significant remuneration waivers effective April 1, 2026:

• Managing Director J.S. Rao waived ₹8 lakh per month, reducing his salary to ₹2 lakh per month.
• Chairperson Triveni Jasti waived ₹9 lakh per month, reducing her salary to ₹1 lakh per month.

These reductions will continue until there is an improvement in the company's financial condition. The Board also appointed M/s VCSR & Associates as scrutinizers for the AGM's remote e-voting procedure.

Seshagiri Rao Jasti, Managing Director and promoter of Keerthi Industries Limited , has released the pledge on 24,05,021 equity shares of the company. The release, effective August 10, 2026, removes all encumbrances from Jasti’s holdings, strengthening the promoter group’s unencumbered stake in the Hyderabad-based engineering firm.

The disclosure was made under Regulation 31(1) and 31(2) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, and Regulation 7(2) of the SEBI (Prohibition of Insider Trading) Regulations, 2015. Jasti notified the Company Secretary and Compliance Officer as well as BSE Limited on August 11, 2026.

Shareholding Pattern Changes

Prior to this transaction, Jasti held a total of 30,81,559 equity shares, representing 38.44% of the company’s paid-up capital. Of these, 6,76,538 shares (8.44%) were free of pledge, while 24,05,021 shares (30%) were under encumbrance in favor of Axis Bank Limited for availing credit facilities.

Following the release of the pledge, Jasti’s total holding remains unchanged at 30,81,559 shares or 38.44%. However, the composition of these holdings has shifted entirely to free shares. The number of encumbered shares is now nil.

Capital Structure

The total equity share capital of Keerthi Industries Limited stands at 80,16,738 equity shares of ₹10 each, aggregating to ₹8,01,67,380. This capital structure remained unchanged by the pledge release transaction. The total diluted share/voting capital also remains at 80,16,738 equity shares.

What the Numbers Show

The complete removal of pledged shares from the promoter’s portfolio eliminates the immediate risk of forced sell-offs associated with margin calls or liquidity crunches for the controlling stakeholder. With 38.44% of the voting power now fully unencumbered, the promoter group retains significant control over corporate decisions without collateral constraints. This move often signals improved liquidity management or debt restructuring within the promoter group, providing stability to the company’s ownership structure.