Keerthi Industries Limited has received a legal notice from its coal supplier J P Associates regarding dishonoured cheques worth Rs 2,30,93,037. The company disclosed this development to BSE Limited on February 21, 2026, under Regulation 30 of SEBI Listing Regulations.

Legal Notice Details

The legal notice was dated February 16, 2026, and received by the company on February 19, 2026. The notice has been served under Section 138 of the Negotiable Instruments Act, 1881, which deals with dishonour of cheques for insufficiency of funds.

Root Cause and Company Response

According to the company's disclosure, the issue has arisen due to the surrender of working capital requirements with Axis Bank Limited. This indicates potential liquidity constraints that affected the company's ability to honor payments to its suppliers.

Keerthi Industries has emphasized that there is no material impact on the financial, operations, or other activities of the company. The management is actively engaged in discussions with J P Associates to resolve the matter and secure withdrawal of the legal notice.

Financial Impact Assessment

The company has stated in its regulatory filing that the cheque dishonour incident will not materially impact its financial position or operational activities. However, the amount involved represents a significant sum that the company needs to address with its coal supplier.

Company Background

Keerthi Industries Limited, formerly known as Suvarna Cements Limited, operates from its registered office at Plot No. 40, IDA, Balanagar, Hyderabad. The company's factory is located at Mellacheruvu Village & Mandal, Suryapet District, Telangana. The disclosure was signed by Company Secretary and Compliance Officer Anupama Iyer.

The company has assured stakeholders that any further developments regarding the resolution of this matter will be communicated promptly as per regulatory requirements.

Keerthi Industries Limited announced its unaudited financial results for the quarter ended December 31, 2025, during a board meeting conducted through video conferencing on February 14, 2026. The Hyderabad-based company reported challenging financial performance across key operational metrics for the third quarter of fiscal year 2026.

Financial Performance Overview

The company's financial results for Q3 FY26 showed a significant decline in revenue compared to the previous year. Revenue from operations decreased substantially, while the company continued to face operational losses.

Operational Expenses and Cost Structure

The company's expense structure reflected various operational challenges during the quarter. Major expense categories included power and fuel costs, employee benefits, and material purchases.

Board Decisions and Corporate Actions

During the board meeting, directors approved several important corporate actions beyond the financial results. The company decided to transfer unclaimed dividend for Financial Year 2017-18 amounting to Rs. 7,95,618.90 to the Investor Education and Protection Fund Authority, in compliance with Section 124(5) and Section 124(6) of the Companies Act, 2013.

The board also approved amendments to the Policy on Related Party Transactions, aligning with SEBI (LODR) (Fifth Amendment) Regulations, 2025 dated November 18, 2025. This policy update was recommended by the Audit Committee and will be made available on the company's website.

Segment Performance and Operations

The company's cement division generated revenue of Rs. 1,588.88 lakhs during Q3 FY26, compared to Rs. 2,484.44 lakhs in the corresponding quarter of the previous year. The segment reported a loss before tax and finance cost of Rs. 857.71 lakhs for the quarter.

Discontinued Operations and Asset Classification

The company continues to manage its discontinued operations, particularly the Electronics Division business. On July 11, 2025, shareholders approved the transfer of the Electronics Division business to Hyderabad Bottling Co. Pvt. Ltd. as a going concern through a slump sale arrangement. The company has received consideration towards this transaction and is in the process of completing the transfer formalities.

Additionally, Keerthi Industries has identified land from its Sugar Division amounting to Rs. 487.58 lakhs as available for sale in its present condition. The company has received an advance of Rs. 580.56 lakhs against this land asset.

Earnings Per Share and Capital Structure

The company's paid-up equity share capital remained stable at Rs. 801.67 lakhs with a face value of Rs. 10 per share. The earnings per share from continuing operations showed a loss of Rs. 6.47 per share for Q3 FY26, compared to a loss of Rs. 11.65 per share in Q3 FY25.