Archive · 1 Oct 2026
Shriram Properties Faces Cost Surge, Targets Growth Through Chennai
Shriram Properties builds homes and says its construction costs are rising.
The company estimates that projects may cost 8–10% more than expected.
Items connected to oil imports, such as lifts, tiles and bathroom fittings, are especially expensive.
Cement and steel prices have not risen as much.
The company is paying most of the extra costs instead of charging homebuyers the full increase.
It hopes imports from China will make some materials cheaper.
Shriram Properties expects people will continue buying homes because jobs and incomes are increasing.
It plans to grow strongly, with Chennai as an important market.
Shriram Properties estimates an 8–10% rise in project costs after the Iran and West Asia crisis.
Oil-linked products such as lifts, sanitary fittings and tiles have become more expensive, while cement and steel remain relatively controlled.
The company is absorbing most cost increases because it cannot fully pass them on to homebuyers facing affordability constraints.
It hopes greater imports from China could reduce prices for some construction materials.
Shriram Properties is targeting ₹4,600–5,000 crore in pre-sales over two years, with Chennai central to its expansion.
- Who
- Shriram Properties Ltd and its Chairman and Managing Director, Murali Malayappan.
- What
- The company reported rising construction costs and announced ambitious sales, revenue and profit targets.
- When
- The comments were published on October 1, 2026.
- Where
- The expansion will focus substantially on Chennai, India.
- Why
- Construction costs are rising after the Iran and West Asia crisis, while the company expects housing demand to remain strong.
- Estimated project-cost increase
- 8–10%
- Last year's pre-sales
- About ₹2,300 crore
- Two-year pre-sales target
- ₹4,600–5,000 crore
- Current revenue
- Around ₹1,000 crore
- Three-year revenue target
- ₹2,700–3,000 crore
- Three-year profit target
- ₹250–270 crore, compared with about ₹60–70 crore currently
- Commercial development share
- Nearly 10%