Sri Chakra Cement halts Karampudi plant; FY26 revenue +19.6%

Why this update matters

Sri Chakra Cement Limited has temporarily suspended all manufacturing operations at its Karampudi plant in Andhra Pradesh, a significant operational step for a small listed cement player already reporting losses. The company said the suspension took effect on June 27, 2026, and covers 100% of production activities. Alongside the shutdown, the company has also disclosed an estimated annual revenue impact of ₹130 crore from the halt.

The development lands at a time when Sri Chakra Cement’s FY2025-26 results show higher revenue but continued losses, and an auditor flag around going concern uncertainty has been highlighted as a key investor risk. For investors tracking smaller cement names, the combination of liquidity stress and a full production stop is a material change in business continuity.

What the company announced on the Karampudi unit

Sri Chakra Cement said it has suspended all manufacturing operations at its Karampudi plant in Andhra Pradesh. The company specified June 27, 2026 as the effective date of the suspension. It also stated that the halt impacts 100% of production activities, meaning manufacturing output from the unit is effectively paused.

The reason cited was acute working capital constraints. The statement, as provided, does not include a quarterly break-up of the revenue impact, potential cost savings, or implications for margins. The company has estimated that the suspension could impact revenues by ₹130 crore annually.

Liquidity stress cited as the trigger

The immediate trigger named by the company is working capital, indicating a shortage in day-to-day funding needed to run operations. For cement manufacturers, this can quickly affect the ability to procure fuel, power, raw materials, and to meet logistics and payroll requirements. When the constraints are acute, a production stop becomes a way to prevent further cash burn, although it can also reduce sales and weaken customer relationships.

Sri Chakra Cement’s disclosure frames the decision as liquidity-driven. Beyond that, there are no additional operational details in the provided information on how long the suspension may last or what specific measures are being taken to restore operations.

Revenue impact: company estimates ₹130 crore annually

The company’s estimate of ₹130 crore in annual revenue impact is notable when viewed against its latest annual revenue scale. Sri Chakra Cement reported Revenue from Operations of ₹128.55 crore for FY2025-26, indicating that the stated annual impact is of a similar magnitude to the company’s most recent yearly operating revenue.

The company has not provided supporting assumptions for this estimate, such as historical utilisation, realised pricing, or expected downtime duration. It has also not disclosed any offsetting impacts such as reduced operating expenses during the suspension period.

FY26 financial snapshot: revenue up, losses narrowed

Sri Chakra Cement’s standalone financial results for FY2025-26 showed Revenue from Operations of ₹128.55 crore, Total Expenses of ₹167.91 crore, and Loss Before Tax (PBT) of ₹-35.79 crore. The provided information also states that consolidated financial results for FY2025-26 reflect the same Revenue from Operations, Total Expenses, and PBT figures.

A separate disclosure notes the company reported a consolidated net loss of ₹23.09 crore (₹2,308.84 lakhs) for the year ended March 31, 2026, improving from a loss of ₹56.98 crore (₹5,697.71 lakhs) in the previous year. Another data point states Sri Chakra Cement reported a net profit of ₹-23.09 crore in 2026, consistent with the consolidated net loss figure.

The FY26 narrative also includes a “going concern” uncertainty being flagged, presented as a key concern for investors.

Quarterly trend: losses continue despite periodic improvement

Quarterly disclosures show Sri Chakra Cement remained loss-making. For March 2026 (Q4 FY26), the company reported Revenue of ₹30.17 crore and Net Profit of ₹-1.76 crore. A separate quarter comparison table for MAR 2026 shows Total Income of ₹31.53 crore, Total Expenses of ₹44.73 crore, EBIT of ₹-13.20 crore, and PAT of ₹-1.94 crore, with a Net Profit Margin of -6.15%.

For the quarter labelled Jun 25, the company reported Total Revenue of ₹37.32 crore and Net Income of ₹-6.70 crore, compared with Total Revenue of ₹30.17 crore and Net Income of ₹-1.94 crore in Mar 26. These figures show revenue volatility alongside continued negative profitability.

The provided information also states the company has posted a loss for the 4th consecutive quarter, and cites interest expenses at 2.39% of operating revenues and employee cost at 14.75% for the year ending March 31, 2026.

Stock and market metrics: mixed snapshots across dates

Market data points provided show different snapshots. One quote shows ₹38.25 with a -3.87% move, without a clear timestamp in the excerpt. Another snapshot shows Sri Chakra Cement trading at ₹42.31, down 4.47%, with an update time of Thu 25 Jun, 2026, and a previous close of ₹44.29. In the same snapshot, market capitalisation is stated as ₹38.08 crore.

A separate price line indicates the share price moved up 4.74% from ₹30.98 and last traded at ₹32.45. These points appear to come from different moments and should be read as separate market snapshots rather than a single continuous price series.

Broader cement context: cost pressures visible across the sector

The provided material also includes an update on Shree Cement, where the company said its first quarter was hurt by geopolitical disruptions in the Middle East that pushed up fuel and raw material costs, even as volumes rose 17% year over year. It reported consolidated operational EBITDA of ₹1,272 crore versus ₹1,333 crore a year earlier, while EBITDA per ton fell to ₹1,111 from ₹1,339.

While Shree Cement’s update is about a different company, it illustrates a broader cement-sector theme: higher input costs can compress profitability even when volumes hold up. For smaller companies with tighter balance sheets, working capital strain can become more acute during cost pressure periods.

Key facts at a glance

Financial and quarterly data highlights (₹ crore)

What investors will track next

The immediate question for shareholders is the duration of the Karampudi suspension and the steps being taken to address the working capital constraints. The company has provided the effective date, the 100% production impact, and the annual revenue impact estimate, but not a restart timeline.

Investors will also monitor future disclosures for any quantified impact on costs, cash flows, and any changes in the going concern assessment. Any update on funding arrangements, receivables, or creditor terms would be directly relevant given the reason cited for the shutdown.

Company contact details in the disclosure

The provided information lists the company’s address as D.No.27/4/1, Kannavari Thota, 1st Floor, Beside Central Excise Office, Guntur, Andhra Pradesh, 522104. The email contact shown is srichakracement@gmail.com.

Conclusion

Sri Chakra Cement’s full suspension of manufacturing at its Karampudi plant from June 27, 2026, signals severe working capital stress, with the company estimating an annual revenue impact of ₹130 crore. FY26 revenue rose to ₹128.55 crore, losses narrowed versus the prior year, but the company remained loss-making and a going concern uncertainty was flagged. The next meaningful datapoints will be management updates on liquidity measures and any timeline for resuming production at the Karampudi unit.