Shree Cement sees intense increase in production costs in FY27

Business To Business, New Delhi, 08^th July, 2026:    Cement major Shree Cement Ltd has cautioned that rising prices of key raw materials, driven by disruptions in global supply chains and geopolitical tensions, are expected to have a greater impact on its production costs during the financial year 2026-27.
In its annual report, the company said input costs remained largely stable during the first half of FY2025-26. However, prices of critical raw materials began to rise from the beginning of the second half of the fiscal year, signalling increasing cost pressures for the cement industry.
According to Shree Cement, geopolitical tensions in West Asia towards the end of FY2025-26 disrupted global supply chains, resulting in a sharp increase in the prices of coal, petroleum coke (petcoke), packing bags and several other essential inputs used in cement manufacturing.
The company indicated that these elevated input costs are likely to exert greater pressure on production expenses in FY2026-27, potentially impacting operating margins if the higher costs persist.
Energy and fuel constitute a significant portion of cement manufacturing costs, making the sector particularly vulnerable to fluctuations in global commodity prices and supply chain disruptions. The rise in the cost of coal and petcoke, two key fuels used in cement production, is expected to remain a major challenge for manufacturers.
Despite the anticipated cost pressures, Shree Cement said it remains focused on improving operational efficiency, optimising resource utilisation and implementing cost-management measures to mitigate the impact of rising input prices while sustaining long-term growth.