Shri Keshav Cements & Infra Limited: A Green Turnaround Story in H1 FY26

Shri Keshav Cements & Infra Limited, a prominent player in the Indian cement and solar power sectors, has reported a robust financial performance for the second quarter and first half of fiscal year 2026. The company, known for its commitment to sustainable operations, showcased significant growth in total income and a remarkable turnaround in profitability, signaling strong operational leverage and strategic execution.

For Q2 FY26, the company's total income surged to INR 36.22 Crore, marking an impressive 42.81% increase compared to the same period last year. This growth trajectory continued into the first half of the fiscal year, with total income reaching INR 77.62 Crore, a substantial 37.14% rise year-on-year. The cement segment played a pivotal role in anchoring this performance, benefiting from improved dispatches, better realizations, and stabilized kiln operations. The company's EBITDA for Q2 FY26 witnessed an extraordinary 175% growth, reaching INR 8.38 Crore, with EBITDA margins expanding by 1122 basis points to a healthy 23.65%. This significant margin expansion underscores the effectiveness of their operational efficiency initiatives. Furthermore, the company successfully transitioned from a loss-making position to a profit after tax (PAT) of INR 0.69 Crore in Q2 FY26 and INR 3.78 Crore in H1 FY26, reflecting a strong financial recovery.

Financial Highlights: A Snapshot of Performance

Strategic Progress and Operational Excellence

The management highlighted that the new kiln, which commenced operations in March 2025, has fully stabilized and is contributing consistently to production. This stabilization, coupled with disciplined cost management, has been a key driver for margin expansion. The company's unique position as one of India's only cement plants to run entirely on 100% green solar power provides a significant cost advantage, helping them remain competitive even in a dynamic pricing environment. This commitment to renewable energy is further bolstered by the government's approval for an additional 3MW solar power generation, increasing their total capacity to 40MW.

Operational efficiency improvements are at the core of their strategy. Investments in high-efficiency PH Cyclones with inline calciners, latest generation coolers, and high-efficiency Vertical Roller Mills are yielding tangible results. Fuel consumption has seen an 80-85% improvement, with further reductions expected. Power consumption per unit has decreased by 20-25%, with an additional 5-6% reduction anticipated in the current quarter. These technological upgrades are crucial for optimizing heat retention, absorbing higher additive materials like slag/ash, and reducing overall production costs. The company's ability to deliver cement within 12 hours of an order also strengthens dealer loyalty and market presence.

Navigating Market Dynamics and Future Outlook

Despite the strong performance, the company acknowledged challenges such as turbulent cement pricing and a slower-than-expected increase in sales volumes due to external factors like monsoons, festivals, and elections affecting construction activity. Management transparently discussed missing their initial sales volume targets, achieving 53% growth against a projected 80-100% increase. They have also strategically postponed entry into new markets like Pune and Bangalore, and delayed the Ready Mix Concrete (RMC) pilot project, until market pricing stabilizes, demonstrating a pragmatic approach to capital allocation.

Looking ahead, Shri Keshav Cements & Infra Limited is focused on strengthening market penetration, expanding volumes, and improving supply chain efficiencies. For H2 FY26, the company anticipates an EBITDA of INR 45-50 Crore. For FY27, with 70% capacity utilization and stable prices, they project total EBITDA to comfortably cross INR 70-80 Crore. The company's expansion and modernization of its cement plant, funded by a ₹45.98 Crore public fundraise, will increase capacity from 3,50,000 MTPA to 10,00,000 MTPA, positioning them for greater market share and sustained growth in the booming real estate and infrastructure sectors.

Conclusion: A Resilient Path Forward

Shri Keshav Cements & Infra Limited's Q2 and H1 FY26 results underscore a period of significant operational turnaround and strategic progress. The company's unwavering focus on green energy, coupled with continuous investments in advanced technology and disciplined cost management, has enabled them to achieve robust growth and profitability. While external market volatility remains a factor, management's transparent communication and adaptive strategies position the company for continued resilience and long-term value creation in the Indian cement industry.