Shri Keshav Cements posts ₹6.53 cr loss as auditor flags GST dispute
Revenue climbed 33% to ₹161.31 crore, but a qualified audit opinion over an ongoing DGGI investigation casts a shadow on the company's balance sheet.
— 1 earlier story on Shri Keshav Cements & Infra Ltd. →What's new
- Net loss widened to ₹6.53 crore for FY26 from ₹6.17 crore in FY25.
- Revenue grew 33% year-on-year to reach ₹161.31 crore.
- Auditor Singhi & Co. issued a qualified opinion regarding a pending DGGI tax investigation.
Why this matters
The qualified audit opinion is a red flag for a company of this size. With the disputed GST payment accounting for nearly 10% of its net worth, the outcome of the DGGI investigation is a material risk to the company's financial health.
What we're watching
- Updates on the High Court petition for the GST refund.
- Any resolution or further developments in the DGGI probe.
- Whether the auditor maintains the qualification in future quarters.
The full read
Shri Keshav Cements & Infra reported a net loss of ₹6.53 crore for FY26, widening slightly from the ₹6.17 crore loss seen in FY25. While the company managed a 33% increase in revenue to ₹161.31 crore, the headline figures are overshadowed by a qualified audit opinion from Singhi & Co. The qualification centers on an advance GST payment of ₹8.60 crore made under protest following a DGGI search in prior years. This amount is not trivial. It represents 9.6% of the company's net worth. The investigation remains open, and the company is currently fighting for a refund in the High Court. For a nano-cap firm, this level of uncertainty regarding a significant portion of its capital is a material concern. The results show top-line growth, but the audit qualification is the primary test for investors.
Questions answered
- Why did the auditor qualify the financial results?
- Singhi & Co. issued a qualified opinion due to uncertainty surrounding an advance GST payment of ₹8.60 crore. This payment was made under protest following a DGGI search in previous years, and the investigation remains unresolved.
- How significant is the disputed GST amount to the company?
- The ₹8.60 crore payment represents approximately 9.6% of the company's total net worth. For a nano-cap firm, this is a material contingent liability.
- What is the status of the GST refund claim?
- The company is currently seeking a refund of the advance payment through the High Court. The investigation by the DGGI is still pending, leaving the final outcome uncertain.
- How did the company perform financially in FY26?
- Shri Keshav Cements reported a net loss of ₹6.53 crore for the year ended March 31, 2026. This is a slight increase from the ₹6.17 crore loss recorded in the previous year, despite a 33% rise in revenue to ₹161.31 crore.
Story so far
All notes on SKCIL →- 29 May 2026 · 3:58 PM IST Shri Keshav Cements posts ₹6.53 cr loss as auditor flags GST dispute
- 1d ago Shri Keshav Cements clears its FY26 accounts