Shriram Properties absorbs most of 8–10% rise in construction costs
Shriram Properties takes on most of rising construction costs
Shriram Properties said on October 1, 2026, that construction input costs had increased by 8–10%, with geopolitical tensions and supply-chain disruption contributing to the pressure. The company said it would absorb most of the escalation rather than pass the full increase on to homebuyers.
The cost rise is a company-wide issue, rather than one attributed to a particular development or city. Chairman and managing director Murali Malayappan said affordability constraints and buyers’ price sensitivity made a full pass-through difficult in the residential market. The company is also exploring higher imports from China as a possible way to lower procurement costs.
Where the cost pressure is concentrated
The increase is concentrated in oil-linked products used in construction, including lifts, sanitary fittings and tiles. Steel and cement prices were described as relatively stable or under control, while higher costs elsewhere are putting pressure on margins.
Shriram Properties’ approach is intended to protect sales volumes by limiting the amount of cost escalation passed on to buyers. That choice leaves the company carrying most of the increase, with the reported pressure affecting margins. Greater imports from China could help reduce the cost of some materials, though the company has not provided a savings estimate or timeline.
- Overall construction input costs: up 8–10%.
- Products highlighted: lifts, sanitary fittings and tiles.
- Steel and cement: relatively stable or under control.
- Company response: absorb most of the increase and explore more imports from China.
Malayappan identified Chennai as an important market for the company’s expansion, with residential demand there expected to draw support from rising employment and household incomes. The cost increase itself was discussed across the company, not as a city-specific change.
Shriram Properties’ operating footprint
Shriram Properties focuses primarily on mid-market and mid-market-premium housing, as well as plotted developments. It began operations in Bengaluru in 2000 and has established operations in Bengaluru, Chennai and Kolkata. The company has also expanded into Pune and operates in cities including Coimbatore and Visakhapatnam.
As of April 30, 2026, the company reported 51 delivered projects, representing 31.5 million square feet of saleable area, and a pipeline of 41 projects spanning 35.3 million square feet. Its reported revenue target for FY27 is ₹2,200 crore. Separately, the company was reported to be targeting ₹4,600–5,000 crore in pre-sales over the following two years.
Next steps
Shriram Properties said its trading window closed on October 1, 2026, and would remain closed until 48 hours after the announcement of its unaudited results for the second quarter and half-year ended September 30, 2026. Management is exploring increased imports from China as a procurement-cost measure, while the company’s stated FY27 revenue target remains ₹2,200 crore.