Shri Keshav Cement & Infra has announced the successful completion of its major expansion project, marking a significant milestone in the company's growth trajectory. The expansion has boosted the company's total cement production capacity to 1 million Tonnes Per Annum (TPA), with commercial operations commencing on November 29, 2025.

Key Highlights of the Expansion

• Capacity Increase: Total cement production capacity now stands at 1 million TPA
• Commercial Operations: Commenced on November 29, 2025
• Market Reach: Enhanced ability to serve North Karnataka, Coastal Karnataka, Goa, Maharashtra, and neighboring regions
• Customer Base: Strengthened position to cater to larger institutional and retail customers

Strategic Implications

The expansion is poised to have several strategic benefits for Shri Keshav Cement & Infra:

1. Market Presence: The increased capacity allows the company to scale its market presence significantly.
2. Demand Fulfillment: Better equipped to meet the rising demand for cement across multiple regions.
3. Customer Segmentation: Enhanced ability to serve both large institutional clients and retail customers.
4. Infrastructure Support: Well-positioned to support the growing demand from infrastructure development, housing, and commercial construction sectors.

Industry Context

This expansion comes at a time when the Indian cement industry is experiencing robust growth, driven by government initiatives in infrastructure development and housing. Shri Keshav Cement & Infra's increased capacity aligns well with the industry trends and positions the company to capitalize on these opportunities.

Company Background

Shri Keshav Cement & Infra, formerly known as Katwa Udyog Limited, was incorporated in 1993. The company is engaged in the manufacturing of cement and solar power generation and distribution in Karnataka, India. With this expansion, the company continues to strengthen its position in the regional cement market.

While specific financial figures are not available at this time, the expansion to 1 million TPA capacity is expected to have a positive impact on the company's future revenue and market share. Investors and industry observers will be keen to watch how this increased capacity translates into financial performance in the coming quarters.

As the cement sector continues to play a crucial role in India's infrastructure development, Shri Keshav Cement & Infra's expansion represents a strategic move to capture a larger share of this growing market.

Shri Keshav Cement & Infra has reported a strong performance for the second quarter of fiscal year 2026, with significant improvements in revenue and profitability. The company's strategic focus on operational efficiency and market expansion has yielded positive results, despite challenging market conditions in the cement industry.

Financial Highlights

• Total income for Q2 FY26 reached INR 36.22 crores, marking a 42.81% year-on-year increase.
• EBITDA grew by 175% to INR 8.38 crores, with margins expanding to 23.65% from 12.44% in Q2 FY25.
• The company achieved a turnaround with a Profit After Tax (PAT) of INR 0.69 crores, compared to a loss in the previous year.

Operational Performance

Shri Keshav Cement & Infra attributed its improved performance to several factors:

• Higher cement dispatches, increasing by 53% year-on-year to 78,995 tons in Q2 FY26.
• Better realizations, with naked cement prices at INR 3,460 per ton.
• Consistent performance from the new kiln, backed by renewable energy operations.

Market Challenges and Outlook

Despite the positive results, the company faced some headwinds:

• Cement prices in the region remained under pressure, with current levels below those seen in FY23 and FY24.
• Fuel costs increased to INR 13,100 per ton in Q2 FY26, up from INR 11,700 in Q2 FY25.

Chairman Venkatesh Katwa commented on the market conditions, stating, "Assuming that the construction work, the pent-up demand should come up. If that happens, yes, we should be able to reach [higher utilization], because our quantity of 1 million ton is very insignificant."

Future Prospects

The company outlined several initiatives and expectations for the future:

• Aiming for 50-60% capacity utilization by the end of the fiscal year.
• Exploring entry into the Ready-Mix Concrete (RMC) market, with potential implementation by Q4 FY26 or Q1 FY27.
• Focusing on expanding institutional sales and geographical reach.
• Expecting EBITDA to potentially reach INR 45-50 crores for the full fiscal year, assuming market conditions improve.

Competitive Advantage

Shri Keshav Cement & Infra highlighted its unique position in the market:

• The company operates on 100% solar power, providing a significant cost advantage.
• EBITDA per ton, including solar benefits, stands at approximately INR 1,130.

Investors and analysts will be watching closely to see if Shri Keshav Cement & Infra can capitalize on its recent improvements and navigate the challenging cement market in the coming quarters. The company's focus on renewable energy and operational efficiency may provide a strong foundation for future growth, particularly if construction activity and cement prices in its key markets show signs of improvement.