Shri Keshav Cements & Infra Limited reported a record annual revenue of ₹161.31 crore for FY26, marking a 32.8% increase from the previous year’s ₹121.45 crore. The cement manufacturer achieved its highest-ever sales figures despite industry-wide overcapacity in the southern region.

The company attributed this growth to a 36% year-on-year increase in dispatches, outperforming regional peers. Management highlighted that its renewable power generation cost advantage allowed it to withstand pricing pressures and expand market share while competitors faced constrained demand.

Financial Performance

Despite the robust top-line growth, Shri Keshav Cements reported a net loss of ₹6.53 crore for the year, widening from the ₹6.17 crore loss recorded in FY25. The profit before tax stood at a loss of ₹104.62 lakh, an improvement from the ₹170.16 lakh loss in the prior year.

Total expenses rose to ₹165.68 crore from ₹126.30 crore in FY25. Finance costs increased to ₹21.56 crore from ₹18.10 crore, reflecting higher borrowing obligations associated with capacity expansion projects.

What the Numbers Show

While operational revenue grew significantly, the bottom line was heavily impacted by non-operational tax charges. The company recorded a deferred tax charge of ₹5.48 crore, compared to ₹4.43 crore in FY25. This tax expense, driven by incremental liabilities on property, plant, and equipment, effectively erased the pre-tax improvement and contributed to the wider net loss. Other income remained relatively stable at ₹3.32 crore, indicating that the revenue growth was purely operational rather than aided by significant one-off gains.

Balance Sheet and Governance Signals

The company’s debt-equity ratio rose to 2.64 times from 2.43 times in the previous year, signaling increased leverage as it funds its expansion. Cash and cash equivalents stood at a lean ₹29.22 lakh at the end of March 2026.

The statutory auditors issued a qualified opinion on the financial statements. The qualification relates to an ongoing Goods and Services Tax (GST) investigation by the Directorate General of Goods and Services Tax Intelligence (DGGI). The company had paid ₹8.60 crore towards GST and interest under protest in 2020-21 and 2021-22. As no final order has been passed by the reporting date, the auditors could not comment on the ultimate impact of this amount held in other current assets.

Additionally, the Board of Directors sought shareholder approval to ratify managerial remuneration for three executive directors—Venkatesh Katwa, Vilas Katwa, and Deepak Katwa—at levels exceeding the limits prescribed under Section 197 of the Companies Act, 2013, and SEBI regulations. This request is necessitated by the company’s loss-making status during the financial year.

Shri Keshav Cements & Infra shri keshav cement & infra reported a net loss of ₹517.30 lakh for the quarter ended June 30, 2026, reversing from a net profit of ₹309.42 lakh in the same period last year. The company’s total income from operations grew 16% year-on-year to ₹4,799.18 lakh, driven primarily by its core cement business. Annual sales and dispatches increased by over 15.92% and 13.48% year-on-year respectively.

The Board of Directors approved the unaudited financial results on August 14, 2026. While operational revenue expanded, the company recorded a pre-tax loss of ₹422.07 lakh. This contrasts with the prior year’s pre-tax profit of ₹268.03 lakh (as per the official extract). Basic earnings per share were (₹2.95).

Financial Performance

Revenue growth was anchored by the cement segment, which contributed ₹4,091.24 lakh to total income, up from ₹3,418.06 lakh in Q1FY25. However, the segment’s profitability declined sharply, posting a segment result of (₹113.87 lakh) against a profit of ₹497.34 lakh in the prior year.

Other segments showed mixed performance:

• Solar Energy: Revenue fell slightly to ₹346.12 lakh from ₹359.95 lakh, but segment results improved significantly to ₹77.53 lakh from ₹6.17 lakh.
• Petrol and Diesel: Revenue dipped to ₹281.32 lakh from ₹292.52 lakh, with segment results remaining stable at ₹7.30 lakh.

Total expenses stood at ₹5,221.25 lakh, exceeding total income of ₹4,799.18 lakh. Finance costs rose to ₹735.96 lakh from ₹474.40 lakh in the corresponding quarter, reflecting increased borrowing costs or debt levels.

Auditor Qualification

Independent auditors Singhi & Co. issued a qualified conclusion on the financial statements. The qualification stems from an ongoing investigation by the Directorate General of Goods and Services Tax Intelligence (DGGI).

The company made advance GST payments totaling ₹641.52 lakh along with interest and penalties of ₹218.11 lakh during FY21 and FY22, related to liabilities from FY19 and FY20. As no final order has been passed as of June 30, 2026, the auditors stated they could not comment on the ultimate financial impact, though the amounts are currently classified under other current assets.

What the Numbers Show

A significant divergence exists between top-line growth and bottom-line performance. While revenue grew 16%, total expenses surged 36%, driven largely by a rise in finance costs and other unallocable expenses. The cement segment, contributing 87% of total revenue, swung from a profit of ₹497.34 lakh to a loss of ₹113.87 lakh, indicating severe margin compression in the core business despite volume growth. Meanwhile, the solar energy segment emerged as a key profitability driver, with its contribution to segment results increasing more than tenfold.

Corporate Actions

During the same meeting, the Board:

• Approved the Directors’ Report for FY26.
• Fixed the date and venue for the 33rd Annual General Meeting.
• Re-appointed Mr. Vilas Katwa as Managing Director for a five-year term.