Sri Chakra Cement suspends manufacturing at Karampudi unit
Sri Chakra Cement Limited temporarily suspended manufacturing operations at its Karampudi unit effective June 27, 2026, due to acute working capital constraints. The complete suspension affects 100% of the company's operations, with an estimated indicative revenue impact of approximately ₹130 crore per annum. The company is pursuing funding and restructuring options to resume operations and will update the exchange on material developments.
*this image is generated using AI for illustrative purposes only.
Sri Chakra Cement Limited has temporarily suspended its manufacturing operations at its Karampudi unit in Guntur District, Andhra Pradesh, effective June 27, 2026, due to acute working capital constraints. The suspension is complete and affects 100% of the company's operations, halting production to prevent further capital erosion while the firm explores revival options. The estimated indicative revenue impact for the assessment horizon is approximately ₹130 crore per annum, although fixed overheads and statutory dues continue to accrue.
The decision was taken as a prudent measure to safeguard stakeholder value while the company actively mobilizes additional working capital. Management is evaluating restructuring and other revival options to improve liquidity and resume manufacturing. At present, a definitive timeline for recommencement cannot be ascertained and depends on the successful implementation of these funding initiatives.
Impact on Operations and Financials
The cessation of production results in a loss of manufacturing revenue for the duration of the suspension. The company noted that a precise quantification of the financial impact depends on how long the suspension lasts. Despite the shutdown, the company continues to take steps to safeguard plant assets and inventory, and remains committed to complying with statutory and employee obligations to the extent feasible.
Key Disclosures on Suspension
| Particulars | Details |
|---|---|
| Name of the unit affected | Factory Situated At Karampudi, Guntur District, Andhra Pradesh |
| Nature of the event | Temporary suspension of manufacturing operations |
| Type of suspension | Complete - manufacturing operations at the said unit stand fully suspended |
| Date of effect | 27/06/2026 |
| Reason for suspension | Acute working capital constraints affecting the Company's ability to sustain manufacturing in the normal course of business |
| Attributable to force majeure | No |
| Expected impact | Cessation of production and loss of manufacturing revenue; estimated indicative revenue impact of approximately ₹130 Crore per annum |
| Business affected | Affects the Company's manufacturing activity in its entirety / the said unit, which constitutes 100% of the Company's operations |
| Expected duration | Temporary; precise timeline cannot presently be ascertained |
Asset Protection and Future Updates
All assets are adequately insured to the extent of ₹151.50 crores by a Standard Fire and special perils insurance policy. The company confirmed that promoters, the promoter group, directors, or Key Managerial Personnel are not interested in the event. Sri Chakra Cement Limited has committed to disclosing material developments, including the recommencement of operations or funding outcomes, promptly under Regulation 30 of the SEBI Listing Regulations.
Historical Stock Returns for Sri Chakra Cement Limited
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.28% | -5.28% | -10.41% | -45.97% | -11.39% | +1,135.24% |
What specific restructuring or funding avenues is management currently prioritizing to resolve the liquidity crisis?
How will the company manage the accumulation of fixed overheads and statutory dues during the indefinite suspension period?
Does the company anticipate needing to dilute equity or take on significant debt to secure the necessary working capital?
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