Cement volume growth (Q3 YoY)
32%
+32% YoY
Volume grew to 78,000 tons vs 58,960 tons in Q3 FY25, outperforming southern industry decline of ~3%.
SHRIKESHAVCEMENTSANDINFR
Manufacturing
10 Feb 2026
Shri Keshav Cements and Infra Ltd — Q3 FY26
Shri Keshav Cements delivered a strong Q3 FY26 with total income of ₹38.69 crore (+33% YoY) and EBITDA of ₹10.5 crore (+63% YoY), driven by a new kiln stabilization, 32% volume growth (vs.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
Shri Keshav Cements delivered a strong Q3 FY26 with total income of ₹38.69 crore (+33% YoY) and EBITDA of ₹10.5 crore (+63% YoY), driven by a new kiln stabilization, 32% volume growth (vs. -3% southern industry), and captive solar power providing a structural cost advantage. EBITDA margin expanded 477 bps YoY to 27.68%, despite flat realizations and 20% petcoke cost inflation. Management guided for FY26 exit capacity utilization of ~40% and FY27 target of 45-55%, with potential to reach 60% if market improves. Debt reduced 15% to ₹159 crore. Key risk: sustained price competition in the oversupplied southern market could pressure margins if utilization ramp-up stalls.
Key Numbers
EBITDA per ton (incl. solar benefit)
₹835
+240% YoY
EBITDA per ton improved from ₹246 in Q3 FY25 to ₹835, driven by operational leverage and solar cost savings.
Capacity utilization (Q3 FY26)
31%
+0 bps vs Q2
Utilization remained low due to competitive market; management targets 40% exit FY26 and 45-55% in FY27.
Solar power cost savings (annualized)
₹25-26 crore
N/A
Captive solar saves ~₹4.5/unit vs grid, translating to ~₹25-26 crore annual operating cost savings.
Management Guidance
FY26 exit capacity utilization of ~40%
Management expects to close FY26 at around 40% capacity utilization, up from 31% in Q3.
Management guidance growthFY27 capacity utilization target of 45-55%
Targeting 45-55% utilization in FY27, with potential to reach 60% if market conditions improve.
Management guidance growthDebt repayment obligation reduction of ~16.4% in FY27
Debt repayment obligation will reduce by ~16.4% next fiscal year due to closure of three terminals.
Management guidance otherEBITDA potential of ₹90-100 crore at 60% utilization
At 60% capacity utilization, management estimates EBITDA could reach ₹90-100 crore annually.
Management guidance marginsKey Risks
Intense price competition in southern cement market
Southern India faces overcapacity and aggressive pricing by large players, compressing margins for all producers.
high · management_commentaryDependence on fossil fuels with no AFR yet
Company is 100% dependent on petcoke/coal; alternative fuel (AFR) adoption is 2-3 quarters away, leaving it exposed to fuel price spikes.
medium · analyst_questionSlow capacity utilization ramp-up
Despite strong volume growth, utilization remains at 31% due to market headwinds; slower-than-expected ramp-up could delay profitability targets.
medium · data_observationSolar regulatory changes post-incentive period
Solar regulatory benefits for plants commissioned in 2018 will expire in 3-7 years; future charges could reduce cost advantage.
low · analyst_questionNotable Quotes
Our biggest strategic advantage is close proximity to the consumption market which reduces logistic cost, and being located at the Karnataka-Maharashtra border.
Even at 30% capacity utilization we are able to make substantial EBITDA and cash profits. Our break-even point is probably the lowest in the industry, maybe less than 20%.
In spite of the increase in fuel prices and sales price remaining flat, EBITDA per ton increased significantly, which indicates structurally there has been a lot of improvement after we put up a new kiln.
Frequently Asked Questions
What was Shri Keshav Cements's revenue in Q3 FY26?
Shri Keshav Cements reported revenue of ₹39 Cr in Q3 FY26, representing a +33.22% change compared to the same quarter last year.
What guidance did Shri Keshav Cements management give for FY27?
FY26 exit capacity utilization of ~40%: Management expects to close FY26 at around 40% capacity utilization, up from 31% in Q3. FY27 capacity utilization target of 45-55%: Targeting 45-55% utilization in FY27, with potential to reach 60% if market conditions improve. Debt repayment obligation reduction of ~16.4% in FY27: Debt repayment obligation will reduce by ~16.4% next fiscal year due to closure of three terminals. EBITDA potential of ₹90-100 crore at 60% utilization: At 60% capacity utilization, management estimates EBITDA could reach ₹90-100 crore annually.
What are the key risks for Shri Keshav Cements in FY27?
Key risks include Intense price competition in southern cement market — Southern India faces overcapacity and aggressive pricing by large players, compressing margins for all producers.; Dependence on fossil fuels with no AFR yet — Company is 100% dependent on petcoke/coal; alternative fuel (AFR) adoption is 2-3 quarters away, leaving it exposed to fuel price spikes.; Slow capacity utilization ramp-up — Despite strong volume growth, utilization remains at 31% due to market headwinds; slower-than-expected ramp-up could delay profitability targets.; Solar regulatory changes post-incentive period — Solar regulatory benefits for plants commissioned in 2018 will expire in 3-7 years; future charges could reduce cost advantage..
Did Shri Keshav Cements meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Shri Keshav Cements Q3 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.