Will Shree Cement’s lockout at Chhattisgarh plant lead to major production loss?

Synopsis: Shree Cement has officially informed the stock exchange that it has declared a lockout of its cement manufacturing plant located in Raipur, Chhattisgarh, due to the non-cooperation of workmen. 

The shares of this cement company  majorly engaged in manufacturing and supplying cement with multiple production facilities in India, were in focus after informing the exchange about the lock-out of a cement plant leading to loss of production.

With the market capitalization of Rs. 92,529 Crores the shares of Shree Cement were trading at around Rs. 25,645 which is  21 percent discount  from its 52 week high of Rs. 32490 and is trading at a P/E of 53.8 whereas industry P/E stands at 33.2 

What Happened

The company has informed the stock exchanges that it has declared a lockout at one of its cement manufacturing plants located in Baloda Bazar, Raipur, Chhattisgarh, effective from 18 December 2025. The lockout has been announced due to non-cooperation of workmen, following which the management has decided to temporarily halt operations at the plant. 

The production loss is estimated at around 10,000 tonnes per day and will continue until operations resume. While all plant assets are covered under insurance, the coverage does not extend to losses arising from production disruptions unless there is any physical damage.

Company analysis and financials: 

Shree Cement is primarily engaged in the manufacturing and supply of cement and operates multiple production facilities across India. In addition to cement manufacturing, the company also generates power through its waste heat recovery plants, which helps improve energy efficiency and reduce operating costs.

Recently, Shree Cement commissioned a 3.65 million tonne clinkerisation unit in Rajasthan, strengthening its upstream capacity, and also commissioned a 3 million tonne cement grinding mill last month, enhancing its finished cement output.

 With these additions, the company’s total cement manufacturing capacity stands at approximately 68.8 million tonnes per annum (MTPA). Going ahead, Shree Cement has outlined a clear expansion roadmap and aims to scale up its capacity to around 80 MTPA by FY28–29, reflecting its long-term growth strategy and focus on meeting rising cement demand.

Year on Year Analysis: Its revenue from operations has increased from Rs. 4054 Crores to Rs. 4761 Crores, up 17.4 percent. Operating profit has increased from Rs. 613 Crores to Rs. 974 Crores, up 58.8  percent and net profit has increased from Rs. 77 Crores to Rs. 310 Crores, up 302 percent. 

Quarter on Quarter analysis:  Its revenue from operations has decreased on a quarterly basis from Rs. 5281 Crores to Rs. 4761 Crores, down 10 percent. Operating profit has decreased from Rs. 1333 Crores to 974 Crores, down 26 percent and its net profit has decreased from Rs. 644 Crores to Rs. 310 Crores, down 51 percent 

Written By Vachan Kadli

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