Any current/future new fundraising through debt or equity?

No immediate plans for new capacity addition or major capex until FY '27, focusing on stabilizing the existing cement plant. Debt is set to reduce significantly with three term loans closing this year; two already closed in Q1 and one by Q4. Debt reduction is expected to continue steadily over the next 3 years, repaying around 30%-40% (~INR 70 crores). Debt will only increase if new cement/RMC plants are added in the future, but currently, no such plans are indicated. Management confident about servicing and repaying existing debt through internal accruals without needing to raise additional c

Any current/future capex/capital investment/strategic investment?

No major capex planned until FY '27; focus is on stabilizing the recently completed cement plant expansion. Future capacity increase for cement (up to 1.6-1.8 million tons) will require adding crushing and grinding capacity once current capacity utilization reaches around 70%. Potential future solar capacity addition of about 30 MW is under Board consideration, but no decision taken yet; planned post cement plant stabilization. RMC (Ready-Mix Concrete) plant project study completed; project initiation delayed by a quarter, will commence once cement plant stabilizes (expected by Q2 or Q3

Future growth expectations in sales/revenue/volumes?

Cement capacity increased from 0.36 million tons to 1 million tons, with plans to further increase to 2 million tons in the future. Target capacity utilization: 45% in FY '26, 55-60% in FY '27, and 65-70% beyond. Sales volume growth: 42% year-on-year increase in Q1 FY '26; anticipated continued ramp-up in subsequent quarters. Market share currently around 3-4% with potential to reach 5-6% in existing markets. Contribution from institutional buyers expected to grow from 3-4% in Q1 to 10-12% in Q2 FY '26, stabilizing at 20-25% eventually. EBITDA expected to increase to INR 100 crores at 65-70% c

Future growth expectations in earnings/operating earnings/profits/EPS?

EBITDA for FY '26 expected in the range of INR 50-60 crores, with margins around 25-30%. EBITDA for FY '25 Q1 was INR 10.41 crores, showing 32.53% YoY growth in total income. EBITDA per ton increased sharply to INR 365 in Q1 FY '26 from less than INR 100 in FY '25, indicating operational ramp-up. With 45% capacity utilization, management expects EBITDA margins to sustain; 65-70% utilization could yield INR 100 crore EBITDA by FY '27. PAT growth is expected but influenced by deferred tax liabilities; focus remains on EBITDA and PBT. Earnings growth driven largely by volume increase an

Current/ Expected Orderbook/ Pending Orders?

The company has begun receiving orders from institutional/government projects, such as KRIDL (Karnataka Road Infrastructure Development Corporation). In the last quarter, they dispatched around 3,000 to 4,000 tons to institutional clients. This quarter, they expect to more than double that institutional order quantity. They anticipate institutional buyer contribution to stabilize between 20% to 25% of volumes in the near future. The company is targeting increased sales through deeper market penetration and new customer acquisition but currently focusing on existing markets before expanding to

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Shri Keshav Cements & Infra LtdQ2 FY25Cement & Cement Products

Shri Keshav Cements & Infra Ltd Q2 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹144Market Cap: ₹277 CrSector: Cement & Cement Products

Management growth scorecard

Revenue

Category 1

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 1

→Cement capacity increased from 0.36 million tons to 1 million tons, with plans to further increase to 2 million tons in the future.
→Target capacity utilization: 45% in FY '26, 55-60% in FY '27, and 65-70% beyond.
→Sales volume growth: 42% year-on-year increase in Q1 FY '26; anticipated continued ramp-up in subsequent quarters.
→Market share currently around 3-4% with potential to reach 5-6% in existing markets.
→Contribution from institutional buyers expected to grow from 3-4% in Q1 to 10-12% in Q2 FY '26, stabilizing at 20-25% eventually.
→EBITDA expected to increase to INR 100 crores at 65-70% capacity utilization by FY '27.
→Strategic focus on deepening market penetration in current regions before expanding to Kerala and Bangalore.

Margin guidance

Category 3

→EBITDA for FY '26 expected in the range of INR 50-60 crores, with margins around 25-30%.
→EBITDA for FY '25 Q1 was INR 10.41 crores, showing 32.53% YoY growth in total income.
→EBITDA per ton increased sharply to INR 365 in Q1 FY '26 from less than INR 100 in FY '25, indicating operational ramp-up.
→With 45% capacity utilization, management expects EBITDA margins to sustain; 65-70% utilization could yield INR 100 crore EBITDA by FY '27.
→PAT growth is expected but influenced by deferred tax liabilities; focus remains on EBITDA and PBT.
→Earnings growth driven largely by volume increase and capacity expansion (from 0.36 million to 1 million tons).
→Solar segment also contributes significantly to EBITDA (INR 7.8 crores in Q1 FY '26) with stable power sale realizations.
→Management targets EBITDA per ton to approach South industry average (~INR 560) within a year.

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Fundraise plans

Yes

→No immediate plans for new capacity addition or major capex until FY '27, focusing on stabilizing the existing cement plant.
→Debt is set to reduce significantly with three term loans closing this year; two already closed in Q1 and one by Q4.
→Debt reduction is expected to continue steadily over the next 3 years, repaying around 30%-40% (~INR 70 crores).
→Debt will only increase if new cement/RMC plants are added in the future, but currently, no such plans are indicated.
→Management confident about servicing and repaying existing debt through internal accruals without needing to raise additional capital.
→Board is discussing potential solar capacity expansion, but no financing details or timelines have been provided yet.

Order book

Yes

→The company has begun receiving orders from institutional/government projects, such as KRIDL (Karnataka Road Infrastructure Development Corporation).
→In the last quarter, they dispatched around 3,000 to 4,000 tons to institutional clients.
→This quarter, they expect to more than double that institutional order quantity.
→They anticipate institutional buyer contribution to stabilize between 20% to 25% of volumes in the near future.
→The company is targeting increased sales through deeper market penetration and new customer acquisition but currently focusing on existing markets before expanding to new regions like Kerala or Bangalore.
→Institutional orders are expected to grow steadily as they qualify for more government-related infrastructure projects due to increased capacity.

Capex plans

→No major capex planned until FY '27; focus is on stabilizing the recently completed cement plant expansion.
→Future capacity increase for cement (up to 1.6-1.8 million tons) will require adding crushing and grinding capacity once current capacity utilization reaches around 70%.
→Potential future solar capacity addition of about 30 MW is under Board consideration, but no decision taken yet; planned post cement plant stabilization.
→RMC (Ready-Mix Concrete) plant project study completed; project initiation delayed by a quarter, will commence once cement plant stabilizes (expected by Q2 or Q3 FY '26).
→Capex in solar and RMC will be considered after plant stabilization, likely post-Q2 FY '26.
→Existing solar plant investment approx. INR 196 crores for 40 MW capacity; payback period around 8-9 years with operational cost efficiency improvements expected in future expansions.

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