Shri Keshav operating cash flow falls 24% to Rs 12.5241 crore

Shri Keshav Cements and Infra Limited reported net operating cash inflow of Rs 12.5241 crore for the six months ended September 30, 2026, down from Rs 16.4133 crore a year earlier. The decline followed a pre-tax loss of Rs 11.9880 crore and working-capital outflows, while interest paid increased to Rs 11.2482 crore.

Why did Shri Keshav's operating cash flow fall?

Shri Keshav's operating cash flow fell because operating profit before working-capital changes declined to Rs 13.0768 crore in the six months ended September 30, 2026, from Rs 19.1573 crore in the corresponding 2025 period. The cash-flow reconciliation began with a pre-tax loss of Rs 11.9880 crore, compared with a pre-tax profit of Rs 4.0606 crore a year earlier.

Depreciation expense added back in the reconciliation rose to Rs 11.6429 crore from Rs 6.8784 crore, while finance cost added back increased to Rs 14.6231 crore from Rs 9.3423 crore. The statement also included a Rs 61.87 lakh gain on fair valuation of an interest-free loan from DIC, compared with a Rs 67.62 lakh gain in the previous-year half.

Cash generated from operations was Rs 12.4908 crore, down from Rs 16.4934 crore in the six months ended September 30, 2025. The company reported income tax paid of Rs 3.34 lakh, against Rs 8 lakh in the preceding comparable period, and net operating cash inflow of Rs 12.5241 crore.

How did working capital affect Shri Keshav's cash generation?

Shri Keshav's working capital used cash through higher trade receivables and inventories during the six months ended September 30, 2026. Trade receivables absorbed Rs 2.2521 crore, compared with Rs 1.0130 crore in the prior-year period, while inventories absorbed Rs 4.6551 crore, compared with Rs 1.0026 crore.

Other financial assets and other current assets used a further Rs 91.96 lakh, versus Rs 1.2578 crore a year earlier. Together, receivables and inventory accounted for Rs 6.9072 crore of outflows, compared with Rs 2.0156 crore in the corresponding 2025 half year.

The company partly offset those outflows through a Rs 7.2512 crore increase in trade payables, compared with an Rs 85.92 lakh increase a year earlier. Other liabilities and provisions decreased by Rs 1.04 lakh, against a Rs 24.95 lakh decrease in the prior-year period, leaving cash generated from operations below the pre-working-capital figure.

The September 30 balance sheet reflected these movements. Inventories were Rs 39.8840 crore, up from Rs 35.2289 crore at March 31, 2026, and trade receivables were Rs 10.9233 crore, compared with Rs 8.7829 crore at the March year end.

How much cash did Shri Keshav spend on interest and borrowings?

Shri Keshav paid Rs 11.2482 crore of interest in the six months ended September 30, 2026, up from Rs 9.2851 crore in the corresponding 2025 period. The cash interest payment was close to the Rs 12.5241 crore net inflow reported from operating activities during the half year.

The company repaid Rs 6.1819 crore of borrowings and received Rs 5.3008 crore of borrowing proceeds, resulting in a net repayment of Rs 88.11 lakh before interest. In the corresponding 2025 half year, it repaid Rs 18.4040 crore and received Rs 25.9666 crore of borrowing proceeds.

Including interest payments, net cash outflow from financing activities was Rs 12.1292 crore, compared with Rs 1.7225 crore in the prior-year half. The financing outflow occurred despite the lower net borrowing repayment because interest paid increased by Rs 1.9631 crore year on year.

Shri Keshav said bank term loans fell by Rs 4.5886 crore during the September 2026 quarter, from Rs 161.3481 crore at June 30, 2026 to Rs 156.7595 crore at September 30, 2026. Its balance sheet showed non-current borrowings of Rs 162.2395 crore and current borrowings of Rs 77.8994 crore at September 30, 2026.

Did lower capital spending preserve Shri Keshav's cash?

Yes. Shri Keshav's lower purchases of property, plant and equipment and capital work-in-progress reduced the reported investing cash outflow to Rs 44.18 lakh in the six months ended September 30, 2026, from Rs 14.7148 crore in the corresponding period a year earlier.

Purchases of property, plant and equipment and capital work-in-progress were Rs 72.59 lakh, sharply lower than Rs 14.7156 crore in the previous-year half. The 2026 investing cash-flow statement also recorded Rs 35.30 lakh related to inter-corporate deposits, Rs 24.80 lakh of interest received and a dividend received of Rs 9.

The lower investing outflow did not prevent a decline in cash and cash equivalents. Shri Keshav reported a net decrease of Rs 4.69 lakh during the six months, compared with a Rs 2.40 lakh decline a year earlier, ending September 30, 2026 with Rs 24.53 lakh of cash and cash equivalents.

The cash-flow statement showed opening cash and cash equivalents of Rs 29.22 lakh for the year beginning April 1, 2026. For the comparable 2025 half year, it reported closing cash and cash equivalents of Rs 18.93 lakh.

What operating performance accompanied Shri Keshav's cash movements?

Shri Keshav's revenue from operations increased 9.48% to Rs 83.3370 crore in the six months ended September 30, 2026, from Rs 76.1190 crore a year earlier. However, its cement segment result moved to a loss of Rs 7.2508 crore from a profit of Rs 5.2532 crore, even as cement revenue increased 12.55% to Rs 73.0501 crore.

Solar Energy reported a segment result of Rs 1.0180 crore, compared with Rs 67.66 lakh in the previous-year half, on revenue of Rs 6.3230 crore against Rs 5.6855 crore. Petrol and Diesel revenue declined to Rs 3.5639 crore from Rs 5.1920 crore, while its segment result decreased to Rs 5.31 lakh from Rs 11.18 lakh.

Total segment results consequently moved to a loss of Rs 6.1797 crore from a profit of Rs 3.6882 crore. Unallocated finance cost increased to Rs 16.4647 crore from Rs 13.3457 crore, before unallocated expenses of Rs 2.9657 crore and unallocated income of Rs 32.22 lakh contributed to the pre-tax loss.

The financial results were reviewed by the audit committee and approved by the board on November 12, 2026. The limited-review report also contained a qualified conclusion relating to a Directorate General of GST Intelligence investigation that remained incomplete at September 30, 2026.

Conclusion

Shri Keshav generated less operating cash in the first half of 2026-27 despite higher revenue, as the shift to a pre-tax loss and increased cash absorption by inventories and receivables reduced cash generation. Lower capital expenditure limited the investing outflow, but higher interest payments and net debt repayment resulted in a Rs 4.69 lakh decrease in cash and cash equivalents.

The next disclosed development to watch is whether the term-loan reduction continues after bank term loans fell to Rs 156.7595 crore at September 30, 2026. The auditor said no order had been passed by that date in the GST investigation involving GST advances of Rs 6.4152 crore and related interest and penalties of Rs 2.1811 crore, which were included in other current assets.