Shree Cement expects rising raw material costs to place greater pressure on production costs in the 2026-27 financial year following supply chain disruptions linked to geopolitical tensions in the Middle East.
In its latest annual report, the Indian cement producer said input costs remained largely stable during the first half of FY2025-26 but increased in the second half, with prices of coal, petcoke, packaging materials and other inputs rising sharply towards the end of the year.
Despite the cost pressures, the company said it remains optimistic about cement demand, citing continued government investment in infrastructure, strong housing demand and a gradual recovery in private real estate and commercial construction. However, it cautioned that escalating geopolitical tensions and a weaker-than-expected monsoon could affect the outlook.
