Shiva Cement Ltd (532323)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Shiva Cement's revenue was ₹151 Cr (+42.9% year on year, +25.2% on the previous quarter), and net profit ₹-21.3 Cr (a smaller loss than a year earlier); the operating margin was 12.3%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹151 | +42.9% | +25.2% |
| Operating profit | ₹18.7 | from loss | +69.6% |
| Net profit | ₹-21.3 | loss narrowed | loss narrowed |
| EPS (₹) | -0.72 | loss narrowed | loss narrowed |
| Operating margin | 12.3% | — | — |
📢 Recent Corporate Announcements
The Board of Shiva Cement Limited has approved a Scheme of Arrangement for the amalgamation of the company into its parent entity, JSW Cement Limited, which currently holds 66.23% equity. Under the scheme, Shiva Cement will dissolve without winding up, and its accumulated losses will be adjusted against reserves. Post-merger, JSW Cement's public shareholding will rise from 27.03% to 27.67% through the issuance of 1.21 crore new shares to Shiva Cement's public shareholders. The appointed date for the scheme is set as April 01, 2026, subject to NCLT and shareholder approvals.
- Shiva Cement to amalgamate into parent JSW Cement Limited; Shiva Cement will cease to exist
- Appointed date fixed as April 01, 2026, subject to NCLT Mumbai Bench approval
- Parent JSW Cement recorded FY26 turnover of ₹5,995.28 crore vs Shiva Cement's ₹435.17 crore
- JSW Cement public shareholding will expand from 27.03% to 27.67% post-arrangement
- Adjustment of Shiva Cement's retained earnings debit balance against its Securities Premium Account to reach ₹(133.92) crore
The Board of Shiva Cement Limited has approved a Scheme of Arrangement for the amalgamation of the company into its parent entity, JSW Cement Limited, which currently holds 66.23% equity. Under the scheme, Shiva Cement will dissolve without winding up, and its accumulated losses will be adjusted against reserves. Post-merger, JSW Cement's public shareholding will rise from 27.03% to 27.67% through the issuance of 1.21 crore new shares to Shiva Cement's public shareholders. The appointed date for the scheme is set as April 01, 2026, subject to NCLT and shareholder approvals.
- Shiva Cement to amalgamate into parent JSW Cement Limited; Shiva Cement will cease to exist
- Appointed date fixed as April 01, 2026, subject to NCLT Mumbai Bench approval
- Parent JSW Cement recorded FY26 turnover of ₹5,995.28 crore vs Shiva Cement's ₹435.17 crore
- JSW Cement public shareholding will expand from 27.03% to 27.67% post-arrangement
- Adjustment of Shiva Cement's retained earnings debit balance against its Securities Premium Account to reach ₹(133.92) crore
Shiva Cement has received modified Environmental Clearance and Consent to Operate to mine and sell 2.4 million tonnes of dolomite annually from its Khatkurbahal (North) block in Odisha. This marks the commencement of a new merchant sales revenue stream for the company, which currently reports a TTM revenue of ₹435 Cr and a net loss of ₹126 Cr. The block contains 48.27 million tonnes of mineable dolomite, providing significant long-term resource visibility. This move is intended to improve cash flows and strengthen raw material security within the JSW Group ecosystem.
- Received approval to commercialize 2.4 million tonnes of dolomite per annum from the Khatkurbahal (North) mine.
- Total dolomite resource identified at 89.09 million tonnes, with 48.27 million tonnes classified as mineable.
- The approval enables merchant sales to steel, cement, glass, and refractory industries, creating a new revenue stream.
- Company currently operates with a high debt of ₹1,740 Cr and a negative net worth of ₹67 Cr, making new revenue streams critical.
- Strategic location in Odisha provides proximity to raw materials and key industrial markets in Eastern India.
Shiva Cement reported a 43.4% YoY revenue growth to Rs 151.49 Cr for the quarter ended June 30, 2026. The company significantly narrowed its net loss to Rs 21.35 Cr, compared to a loss of Rs 128.63 Cr in the preceding quarter (March 2026). Despite operational improvements, the company remains under severe financial strain with accumulated losses of Rs 599.80 Cr and a negative net worth. Auditors have highlighted a 'Going Concern' risk, although management expects recovery from a newly commissioned grinding unit and dolomite mining operations.
- Revenue from operations increased 43.4% YoY to Rs 151.49 Cr from Rs 105.61 Cr.
- Net loss narrowed to Rs 21.35 Cr from Rs 30.28 Cr in the same quarter last year.
- Finance costs remain a major burden at Rs 34.96 Cr, consuming 23% of the total revenue.
- Accumulated losses stand at Rs 599.80 Cr against a paid-up equity capital of Rs 59.00 Cr.
- Power and fuel expenses rose to Rs 47.48 Cr, up from Rs 36.35 Cr in the year-ago period.
Shiva Cement reported a significant 43.4% YoY revenue growth to ₹151.5 Cr for Q1 FY27, driven by the ramp-up of its newly commissioned grinding unit. While the net loss narrowed to ₹21.35 Cr from ₹30.28 Cr in the previous year, the company's financial position remains critical with accumulated losses of ₹599.80 Cr. Auditors have highlighted a material uncertainty regarding the company's ability to continue as a 'going concern' due to negative net worth. Management is relying on improved operational performance and new dolomite mining operations to stabilize the business.
- Revenue from operations increased 43.4% YoY to ₹151.49 Cr compared to ₹105.61 Cr in June 2025.
- Net loss for the quarter narrowed to ₹21.35 Cr from a loss of ₹30.28 Cr in the same period last year.
- Accumulated losses reached ₹599.80 Cr as of June 30, 2026, exceeding the company's share capital.
- Finance costs remain a heavy burden at ₹34.96 Cr, accounting for 23% of the quarterly revenue.
- Management received the Consent to Operate (CTO) for dolomite mining, expected to support future cash flows.
Shiva Cement has received the 'Consent to Operate' (CTO) from the State Pollution Control Board, Odisha, for its Khatkurbahal (North) Block Limestone and Dolomite Mines. This regulatory milestone allows the company to commence commercial mining and sale of dolomite, creating a new revenue stream. The approval is valid until March 31, 2027, and is critical for the company given its current financial position, including a TTM loss of Rs 126 Cr and negative net worth of Rs -67 Cr. Operationalizing captive mines is a key step toward cost optimization and improving the OPM, which stood at a thin 3.2% in the latest trailing twelve months.
- Received Consent to Operate under Water Act 1974 and Air Act 1981 from Odisha State Pollution Control Board
- Approval enables commercial mining and merchant sale of dolomite from the Khatkurbahal (North) Block
- The consent is valid for a specific period ending March 31, 2027
- Mining operations are located at Biringatoli, Kutra, in the Sundargarh district of Odisha
- Company aims to leverage this for revenue generation to offset TTM losses of Rs 126 Cr
Shiva Cement has scheduled a board meeting for July 27, 2026, to approve its unaudited financial results for the quarter ended June 30, 2026. The company is currently under significant financial stress, reporting a TTM net loss of ₹126 crore and a negative net worth of ₹67 crore. With a high debt load of ₹1,740 crore against a market cap of ₹500 crore, these results are critical for assessing the company's turnaround progress. The trading window for designated persons has been closed since July 1, 2026.
- Board meeting scheduled for July 27, 2026, to approve Q1 FY27 results.
- Trading window closed from July 1, 2026, until 48 hours after results are public.
- Company reported a net loss of ₹29 crore in the most recent quarter (March 2026).
- Total debt stands at ₹1,740 crore, which is 3.48x its current market capitalization.
- TTM revenue is ₹435 crore with a thin operating profit margin of 3.2%.
Financial Performance
Revenue Growth by Segment
Total sales volume for FY 2024-25 was 9.05 lakh MT, representing a 4% decrease compared to 9.38 lakh MT in the previous year (which included 2.06 lakh MT of trial run sales). Segment-specific revenue percentages are not disclosed.
Geographic Revenue Split
Not disclosed in available documents, though manufacturing operations are centered in Odisha, India.
Profitability Margins
Operating Profit Margin declined significantly to -15.01% in FY 2024-25 from 2.84% in the previous year, a 628% decrease primarily driven by lower sales realizations. The company reported a net loss for the year, resulting in no dividend recommendation.
EBITDA Margin
Operating EBITDA saw a sharp reduction, contributing to the -15.01% operating margin. The Interest Coverage Ratio fell to -0.40 from 0.10 (a 5% reduction in ratio terms) due to decreased EBIT and higher interest costs.
Capital Expenditure
The company raised INR 400 crore through a rights issue in May 2024 to strengthen its financial position. It has also secured a new term loan sanction of INR 250 crore from DBS Bank specifically for a 1 MTPA cement grinding unit expansion project, with INR 25 crore already drawn during the fiscal year.
Credit Rating & Borrowing
CRISIL reaffirmed the long-term rating at 'Crisil A+/Stable' and reassigned 'Crisil AA- (CE) /Stable' for an INR 648.76 crore facility backed by a corporate guarantee. Project loans are linked to the 1-year MCLR rate with an annual reset.
Operational Drivers
Raw Materials
Key raw materials include Limestone (sourced from captive mines), Coal, and Pet Coke. Specific cost percentages per material are not disclosed.
Import Sources
Limestone is sourced locally from captive mines in Odisha. Other materials like coal and pet coke are monitored via global commodity markets.
Key Suppliers
Not specifically named, though the company maintains long-term relationships with suppliers and uses third-party staffing agencies for contract labor.
Capacity Expansion
Current clinker manufacturing capacity is 1.4 MTPA in Odisha. The company is expanding with a 1 MTPA cement grinding unit. Core equipment has excess capacity to support future growth.
Raw Material Costs
Input costs are affected by price volatility in coal and pet coke. The company mitigates this by using captive limestone mines and maintaining sufficient inventory to ensure continuous supply.
Manufacturing Efficiency
The plant utilizes dry manufacturing technology. Efficiency is driven by the WHRS (60% power self-sufficiency) and the AFR circuit for thermal substitution.
Logistics & Distribution
Logistics costs are identified as a major challenge due to rising freight rates; the company focuses on cost optimization and selecting the most cost-effective transport methods.
Strategic Growth
Expected Growth Rate
8%
Growth Strategy
Growth will be achieved through a 1 MTPA grinding unit expansion, increasing market share via high-quality products, and cost optimization. The company leverages its affiliation with the JSW Group and utilizes proceeds from its INR 400 crore rights issue to repay debt and fund corporate purposes.
Products & Services
Cement bags and Clinker.
Brand Portfolio
Shiva Cement (an affiliate of the JSW Group).
New Products/Services
Development of eco-friendly products using alternative raw materials like fly ash, slag, and pozzolans to appeal to environmentally conscious buyers.
Market Expansion
Targeting rural markets through PMAY housing demand and exploring export opportunities in Africa, the Middle East, and Southeast Asia.
Market Share & Ranking
The company aims to expand market share in the Indian cement industry, which is the world's second-largest producer with 553 MTPA capacity.
Strategic Alliances
Affiliate of the JSW Group; JSW Cement Limited is the holding company with a net worth of INR 2,856.59 crore.
External Factors
Industry Trends
The Indian cement industry is projected to grow 6-7% in FY 2024-25. Trends include a shift toward green cement (3.3% global CAGR) and increased adoption of Waste Heat Recovery Systems (WHRS).
Competitive Landscape
Competes in a consolidating market against major players and international firms like Lafarge-Holcim, Heidelberg Cement, and Vicat Cement.
Competitive Moat
Competitive advantages include captive limestone mines in Odisha, 60% power self-sufficiency through WHRS, and strong backing from the JSW Group. These are sustainable due to long-term mineral rights and integrated infrastructure.
Macro Economic Sensitivity
Highly sensitive to government infrastructure spending; the 2025-26 Union Budget allocated INR 11.21 lakh crore for infrastructure and INR 96,777 crore for urban development (a 17% increase).
Consumer Behavior
Shift toward sustainable and eco-friendly construction materials; rising demand for rural housing under government schemes.
Geopolitical Risks
Vulnerable to global commodity price fluctuations for energy inputs like coal and pet coke.
Regulatory & Governance
Industry Regulations
Operations must comply with pollution norms, the Companies Act 2013, and SEBI (LODR) Regulations 2015. The company follows Secretarial Standards 1 and 2.
Environmental Compliance
The company operates a WHRS and an AFR circuit to meet sustainability goals; specific ESG compliance costs in INR are not disclosed.
Taxation Policy Impact
Impacted by changes in government tax laws and recent tax cuts aimed at boosting infrastructure demand.
Risk Analysis
Key Uncertainties
Supply-demand imbalances in the cement industry and cyclical fluctuations in end-user sectors like real estate and infrastructure.
Geographic Concentration Risk
High concentration in Odisha, where the clinker plant and captive mines are located.
Third Party Dependencies
Uses third-party staffing agencies for contract labor at manufacturing facilities.
Technology Obsolescence Risk
Mitigated by investing in cutting-edge infrastructure, automation, and ICCM technology.
Credit & Counterparty Risk
The company monitors internal performance and cash flow to maintain operational discipline and control cost increases.
