Hyderabad-based Sri Chakra Cement Ltd has temporarily suspended manufacturing operations with effect from June 27, 2026, citing acute working capital constraints that have affected its ability to continue production in the normal course of business.
The company informed the stock exchanges that the temporary suspension is a prudent measure aimed at preventing further capital erosion while it actively pursues initiatives to improve its liquidity position.
Liquidity constraints trigger shutdown
According to the company, severe working capital constraints made it difficult to sustain manufacturing operations, prompting the decision to halt production at its cement plant located at Karampudi in Andhra Pradesh’s Guntur district.
Sri Chakra Cement said it is making all efforts to mobilise additional working capital and is exploring suitable funding and restructuring options to restart manufacturing operations at the earliest.
Entire manufacturing operations affected
The suspension affects the company’s entire manufacturing business, as the Karampudi facility accounts for 100% of Sri Chakra Cement’s operations.
The company said it is currently unable to specify a timeline for resuming production, adding that operations will recommence only after the successful implementation of ongoing funding and revival initiatives.
Revenue impact estimated at ₹130 crore annually
The company expects the suspension to result in the cessation of production and manufacturing revenue during the shutdown period. It has estimated the indicative revenue impact at approximately ₹130 crore annually.
Sri Chakra Cement also noted that fixed overheads, statutory dues and other committed obligations will continue to accrue during the suspension. The final financial impact, however, will depend on the duration of the production halt.
Focus on revival and asset protection
The company said it will continue evaluating restructuring and revival measures while taking steps to safeguard its plant, assets and inventory