Shri Keshav Cement Segment Reports Rs 7.25 Crore Half-Year Loss

Shri Keshav Cements and Infra Limited reported a Rs 7.25 crore cement-segment loss for the half year ended September 30, 2026, versus a Rs 5.25 crore profit a year earlier, although cement revenue rose 12.55% to Rs 73.05 crore. The unaudited results were approved by the board on November 12, 2026.

Why did Shri Keshav’s cement segment report a loss?

Shri Keshav’s cement segment reported a Rs 7.25 crore loss for the half year ended September 30, 2026, compared with a Rs 5.25 crore profit in the corresponding half year ended September 30, 2025. The disclosed segment result therefore deteriorated by Rs 12.50 crore while the division’s revenue increased over the same periods.

The September 2026 quarter accounted for most of the first-half loss. Cement recorded a Rs 6.14 crore loss in the three months ended September 30, 2026, following a Rs 2.15 crore profit in the quarter ended June 30, 2026. In the quarter ended September 30, 2025, the segment had reported a Rs 4.28 crore profit.

The filing does not provide a narrative explanation for the movement from profit to loss. It reports the cement figure within segment results, before deducting other unallocated finance cost and other unallocated expenses and adding other unallocated income to derive the company’s profit or loss before tax.

Did Shri Keshav’s cement revenue grow despite the loss?

Yes, Shri Keshav’s cement revenue increased 12.55% year on year to Rs 73.05 crore in the half year ended September 30, 2026, from Rs 64.91 crore in the corresponding 2025 period. The company specifically disclosed the 12.55% first-half increase in its segment note.

Quarterly cement revenue was Rs 32.14 crore for the three months ended September 30, 2026, up 4.59% from Rs 30.73 crore a year earlier. However, it was below the Rs 40.51 crore recorded in the June 2026 quarter, a sequential decline of Rs 8.37 crore alongside the shift from a quarterly profit to loss.

The additional Rs 8.14 crore of first-half cement revenue did not result in a positive disclosed segment outcome. Cement was the largest reported operating-revenue segment, contributing Rs 73.05 crore out of Shri Keshav’s total revenue from operations of Rs 83.34 crore in the latest half year.

How did Shri Keshav’s other segments perform?

Shri Keshav’s petrol and diesel segment recorded Rs 3.56 crore of revenue for the half year ended September 30, 2026, down from Rs 5.19 crore a year earlier. Its segment result declined to Rs 5.31 lakh from Rs 11.80 lakh in the corresponding 2025 half year.

Solar energy revenue rose to Rs 6.32 crore in the September 2026 half year from Rs 5.69 crore in the prior-year half. The solar energy segment reported a Rs 1.02 crore result in the latest period, while the three reported operating segments together generated a Rs 6.18 crore loss, compared with a Rs 3.69 crore profit a year earlier.

Total revenue from operations increased 9.48% to Rs 83.34 crore in the half year ended September 30, 2026, from Rs 76.12 crore in the corresponding prior-year period. Cement’s Rs 7.25 crore loss was the largest disclosed negative segment result, whereas petrol and diesel and solar energy together produced Rs 1.07 crore of positive segment results.

How did the cement loss affect Shri Keshav’s first-half result?

Shri Keshav reported a Rs 11.99 crore loss before tax for the half year ended September 30, 2026, against a Rs 4.06 crore profit before tax in the corresponding 2025 period. Tax expense of Rs 2.20 crore took the loss for the period to Rs 14.19 crore, compared with a Rs 3.72 crore profit a year earlier.

The reconciliation from segment results included Rs 6.16 crore of other unallocated finance cost and Rs 2.96 crore of other unallocated expenses. These were partly offset by Rs 32.22 lakh of other unallocated income after the company’s Rs 6.18 crore total segment loss.

Finance cost for the six months rose to Rs 14.62 crore from Rs 9.34 crore in the prior-year half. Separately, Shri Keshav said term loans from banks fell by Rs 4.59 crore during the September quarter, from Rs 161.35 crore at June 30, 2026, to Rs 156.76 crore at September 30, 2026.

What do Shri Keshav’s assets and review report show?

Shri Keshav reported cement segment assets of Rs 248.03 crore at September 30, 2026, compared with Rs 260.98 crore at September 30, 2025. Cement assets were also slightly below Rs 248.89 crore at March 31, 2026, while total assets were Rs 420.51 crore at September 30, 2026, versus Rs 423.22 crore at March 31, 2026.

Solar energy assets stood at Rs 156.77 crore at September 30, 2026, while petrol and diesel assets were Rs 20.98 lakh. Cement segment liabilities were Rs 138.56 crore at September 30, 2026, compared with Rs 137.91 crore at March 31, 2026.

The limited review report carried a qualified conclusion concerning an unresolved Goods and Services Tax, or GST, investigation. The auditor said Shri Keshav had paid Rs 6.42 crore in GST advances and Rs 2.18 crore in related interest and penalties in financial years 2020-21 and 2021-22; as of September 30, 2026, no order had been passed, and the auditor could not comment on the effect on the financial results.

Conclusion

Shri Keshav’s first-half results show a clear divergence in its cement business: revenue increased to Rs 73.05 crore, but the segment moved from a Rs 5.25 crore profit to a Rs 7.25 crore loss. The September 2026 quarter produced a Rs 6.14 crore cement loss, while unallocated costs contributed to the company’s Rs 11.99 crore loss before tax.

The next disclosed matters to watch are whether cement returns from the September-quarter loss toward the Rs 2.15 crore profit reported in June 2026, whether bank term loans continue to decline from Rs 156.76 crore, and whether the pending GST investigation results in an order. Shri Keshav did not disclose a cement recovery target or a timetable for the GST matter.