📉 The Financial Deep Dive
Shri Keshav Cements and Infra Limited announced its financial results for the quarter and nine months ended December 31, 2025, revealing a significant revenue expansion coupled with a critical audit qualification.
The Numbers:
- Q3 FY26 Performance: Revenue from operations surged by 35.3% YoY to ₹37.93 Cr from ₹28.10 Cr in Q3 FY25. Total income rose 33.2% YoY to ₹38.69 Cr. However, despite topline growth, the company reported a Net Loss of ₹0.54 Cr, a stark contrast to the Net Profit of ₹0.64 Cr in the prior year's quarter, marking a 185.2% YoY decline. Basic EPS fell to ₹(0.31) from ₹0.36. Sequentially, revenue grew 7.1% QoQ, but profitability worsened from a ₹0.69 Cr profit to a ₹0.54 Cr loss.
- 9M FY26 Performance: For the nine months ended December 31, 2025, Revenue from Operations grew a robust 37.4% YoY to ₹114.05 Cr from ₹83.02 Cr. Total Income increased 35.8% YoY to ₹116.31 Cr. The company achieved a Net Profit of ₹3.23 Cr, a significant turnaround from a Net Loss of ₹1.76 Cr in 9M FY25. Basic EPS stood at ₹1.85 compared to ₹(1.01) YoY.
- EBITDA: The company noted that for Q3 FY26, YoY Sales, EBITDA, and Dispatches jumped by 35%, 53%, and 35%, respectively. For 9M FY26, YoY Sales, EBITDA, and Dispatches increased by 37%, 56%, and 43%, respectively. The 9M FY26 EBITDA margin increased by 14% compared to 9M FY25.
While the nine-month period shows a positive turnaround and strong revenue growth, the Q3 FY26 results are overshadowed by a net loss despite topline increases. Expenses rose 26.4% YoY in Q3 to ₹37.92 Cr, outpacing profit growth. The financial deep dive revealed an increase in Finance Cost to ₹63.66 Cr (from ₹53.01 Cr YoY) and Depreciation to ₹41.24 Cr (from ₹30.33 Cr YoY) for Q3 FY26, contributing to margin pressures.
The Grill:
The most significant concern is the Qualified Conclusion issued by statutory auditors Singhi & Co. on the unaudited financial results. The qualification stems from an advance payment of GST amounting to ₹8.60 Crores (including interest and penalties) made in FY 2020-21 & 2021-22, related to FY 2018-19 and 2019-20. This payment was based on a search by the Goods and Services Tax Intelligence (DGGI). As the DGGI investigation is ongoing and no orders have been issued, the auditors explicitly stated they are "unable to comment on the impact" of these amounts on the financial results, noting they are classified under "other current assets".
Risks & Outlook:
The primary risk for investors is the inherent uncertainty surrounding the DGGI's GST investigation. The outcome could lead to significant penalties and financial liabilities, directly impacting future profitability and the company's balance sheet. The qualified audit opinion erodes investor confidence and may lead to increased scrutiny from regulators and the market. The forward outlook is clouded by this unascertainable financial risk, making future performance highly dependent on the resolution of this tax dispute.