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DCM - DCM

📊 NSE: DCM 🏢 Castings & Forgings 📅 Last Updated: 12/13/2025 21:23

📢 Recent Corporate Announcements

DCM Ltd Seeks Approval to Extend ₹12.02 Cr Debt Repayment Period by 36 Months

🔵 WATCH ⭐ 6/10

REGULATORY 📅 24 Feb 2026, 04:47 PM

DCM Limited has issued a postal ballot notice to seek shareholder approval for a material related party transaction with Purearth Infrastructure Limited, a joint venture company. The proposal seeks to extend the repayment period for book debts of ₹12.02 Crores by an additional 36 months, increasing the total tenure to 102 months. The total amount involved, including accrued interest, is approximately ₹21 Crores related to residential units in the 'Amaryllis' project in Central Delhi. Shareholders can cast their votes electronically between February 25 and March 26, 2026.

Extension of repayment for ₹12.02 Crores book debt by an additional 36 months.
Total repayment tenure increased from 66 months to 102 months from the original 2021 agreement dates.
Aggregate transaction value including accrued interest estimated at approximately ₹21 Crores.
The transaction involves the purchase of residential units in the 'Amaryllis' project, Central Delhi.
E-voting results to be declared on or before March 27, 2026.

💡 Investors should monitor the outcome of the postal ballot as the 3-year extension impacts the timing of cash flows related to the company's real estate interests. Evaluate if the interest accrual sufficiently compensates for the delayed repayment from the joint venture.

DCM Ltd Resubmits Q3 FY26 Results with UDIN; Appoints New CS Amid Going Concern Warnings

🔵 WATCH ⭐ 7/10

BOARD_MEETING 📅 13 Feb 2026, 03:14 PM

DCM Limited has resubmitted its unaudited financial results for the quarter ended December 31, 2025, to include the mandatory UDIN following a technical glitch. The company also announced the appointment of Ms. Sonal Gupta as Company Secretary and Compliance Officer. Despite the administrative updates, auditors have raised a 'Material Uncertainty on Going Concern' as current liabilities exceed current assets by ₹284 lakhs. Furthermore, the company faces a legal dispute over the termination of a Joint Development Agreement involving a ₹5,000 lakh advance and has ₹7,845 lakhs in unprovided wages due to a long-standing lockout.

Resubmission of Q3 FY26 results to include UDIN; financial figures remain unchanged from the initial filing.
Ms. Sonal Gupta appointed as Company Secretary and Compliance Officer effective February 12, 2026.
Auditors flagged ₹7,845 lakhs in unprovided wages related to a lockout at the engineering unit since October 2019.
Material uncertainty on going concern noted as current liabilities exceed current assets by ₹284 lakhs as of Dec 31, 2025.
Legal dispute ongoing regarding the termination of a Joint Development Agreement for Hisar land involving a ₹5,000 lakh advance.

💡 Investors should remain highly cautious given the auditor's 'Going Concern' warning and the significant ₹7,845 lakh unprovided liability. Monitor the legal proceedings regarding the Hisar land JDA termination and the company's ability to improve liquidity through asset sales.

DCM Ltd Appoints New CS; Auditor Raises Going Concern Risks and ₹78.45 Cr Unpaid Wage Liability

🔴 NEGATIVE ⭐ 8/10

EARNINGS 📅 12 Feb 2026, 07:38 PM

DCM Limited has reported its Q3 FY26 results and announced the appointment of Ms. Sonal Gupta as Company Secretary. The statutory auditors have issued a 'Material Uncertainty on Going Concern' warning as current liabilities exceed current assets by ₹284 lakhs. Furthermore, the company has not provided for wages amounting to ₹7,845 lakhs related to a lockout at its engineering unit since October 2019. A significant legal dispute is also ongoing regarding a Joint Development Agreement for Hisar land involving a ₹5,000 lakh advance.

Ms. Sonal Gupta appointed as Company Secretary and Compliance Officer effective February 12, 2026.
Auditors highlighted ₹7,845 lakhs in unprovided wages for the engineering business lockout period from Oct 2019 to Dec 2025.
Material uncertainty on going concern exists as current liabilities exceed current assets by ₹284 lakhs as of December 31, 2025.
Ongoing legal dispute in Delhi High Court regarding the forfeiture of a ₹5,000 lakh advance under a Joint Development Agreement.
Group share of profit from joint ventures and subsidiaries stood at ₹129 lakhs for the quarter ended December 31, 2025.

💡 Investors should remain highly cautious given the auditor's 'Going Concern' warning and the substantial unprovided wage liabilities. Monitor the outcome of the Hisar land litigation and any progress on the restructuring of the engineering business.

DCM Limited Updates Authorized Personnel for Materiality Disclosures Under SEBI Regulations

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 12 Feb 2026, 07:31 PM

DCM Limited has updated its list of authorized personnel for determining the materiality of events and information as per Regulation 30(5) of SEBI LODR. The Board of Directors, in a meeting held on February 12, 2026, designated three key officials for this responsibility. Any two of these officials are now authorized to jointly determine materiality and ensure timely disclosure to the stock exchanges. This is a standard administrative update to ensure compliance with corporate governance norms.

Board authorized three key officials: MD Vinay Sharma, CFO Ashwani Kumar Singhal, and CS Sonal Gupta.
Any two of the three authorized officials must jointly determine the materiality of an event or information.
The update is compliant with Regulation 30(5) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Contact details for the authorized persons have been officially shared with BSE and NSE for transparency.

💡 No action is required as this is a routine regulatory filing. Investors should maintain awareness of the authorized contact points for future material company disclosures.

DCM Ltd Q3 FY26 Results: Auditors Raise Going Concern Warning Amid Legal Disputes

🔴 NEGATIVE ⭐ 8/10

EARNINGS 📅 12 Feb 2026, 07:22 PM

DCM Limited's Q3 FY26 results are overshadowed by a 'Material Uncertainty on Going Concern' warning from auditors as current liabilities exceed current assets by Rs. 284 lakhs. The company is embroiled in a legal battle over the termination of a Joint Development Agreement for its Hisar land, involving a Rs. 5,000 lakh advance currently held as a liability. Furthermore, the company has not provided for wages totaling Rs. 7,845 lakhs related to a long-standing lockout at its engineering unit since 2019. Management is looking to land sales and restructuring to improve liquidity.

Auditors highlighted a Material Uncertainty on Going Concern as current liabilities exceed current assets by Rs. 284 lakhs.
Unprovided wage liability for the engineering business lockout (since Oct 2019) has reached Rs. 7,845 lakhs.
Company issued a termination notice for its Hisar land Joint Development Agreement (JDA) on Nov 1, 2025, leading to litigation.
A Rs. 5,000 lakh advance received from the developer is currently classified as a current liability pending arbitration.
Ms. Sonal Gupta was appointed as Company Secretary and Compliance Officer effective February 12, 2026.

💡 Investors should exercise extreme caution given the 'Going Concern' qualification and the significant legal risks surrounding the company's primary real estate assets. The potential liability of Rs. 7,845 lakhs in unpaid wages remains a major overhang on the balance sheet.

DCM Limited: Resignation of Independent Director Ajay Vir Jakhar Effective Feb 4, 2026

🟡 NEUTRAL ⭐ 3/10

MANAGEMENT 📅 05 Feb 2026, 05:45 PM

DCM Limited has announced that Mr. Ajay Vir Jakhar has resigned from his position as a Non-Executive Independent Director effective February 4, 2026. He cited pre-occupation and personal commitments as the primary reasons for his departure and will also step down from the company's Audit Committee. The director has confirmed that there are no other material reasons for his resignation and that he holds no other directorships in listed entities. This change is a standard board update and does not appear to be linked to any operational or financial issues within the company.

Mr. Ajay Vir Jakhar (DIN: 00156804) resigned as Independent Director effective from the close of business hours on February 4, 2026.
The resignation results in his immediate exit from the Audit Committee as a member.
The director cited 'pre-occupation and other personal commitments' as the reason for stepping down.
Confirmation provided that there are no other material reasons for the resignation beyond those stated.
The outgoing director does not hold directorships or committee memberships in any other listed entity.

💡 This is a routine governance update and should not impact the stock's valuation. Investors should monitor the company's upcoming board appointments to ensure continued compliance with SEBI's independent director requirements.

DCM Limited Submits Quarterly SEBI Compliance Certificate for Dematerialization

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 05 Jan 2026, 03:54 PM

DCM Limited has submitted its compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the quarter ended December 31, 2025. The certificate, issued by MCS Share Transfer Agent Limited, confirms that all securities received for dematerialization were processed within the mandated 15-day period. It further verifies that physical certificates were mutilated and cancelled, with the depository's name substituted in the records. This is a standard administrative filing required by all listed companies in India.

Compliance certificate issued for the quarter ended December 31, 2025.
Confirmation that dematerialization requests were processed within 15 days of receipt.
Physical share certificates were mutilated and cancelled as per SEBI guidelines.
MCS Share Transfer Agent Limited acted as the Registrar and Share Transfer Agent (RTA) for this process.

💡 No action is required from investors as this is a routine regulatory compliance filing. Investors should continue to monitor the company's upcoming quarterly financial results for performance insights.

DCM Ltd Settles ₹8.12 Crore VAT Dispute for ₹1.14 Crore Under Punjab OTS Scheme

🟢 POSITIVE ⭐ 6/10

LEGAL 📅 31 Dec 2025, 01:25 PM

DCM Limited has successfully concluded a long-standing VAT litigation with the Punjab Excise and Taxation Department for the period FY 2010-11 to 2013-14. Under the Punjab One Time Settlement Scheme (OTSS) 2025, the company settled a total demand of ₹8.12 crore, which included basic tax, interest, and penalties, for a final payment of ₹1.14 crore. As the company had already deposited ₹99 lakhs during the appeal process, the incremental cash outflow was minimal. This settlement effectively eliminates a significant contingent liability and prevents future interest accruals, cleaning up the company's balance sheet.

Settled total tax demand of ₹811.67 lakhs (including interest and penalty) for a final amount of ₹113.89 lakhs.
The settlement covers four financial years from 2010-11 to 2013-14 regarding Entry Tax credit on High Speed Diesel (HSD).
Achieved full waiver of interest and penalties under the Punjab Government's OTSS 2025 notification.
Incremental cash outflow was limited as the company had already deposited ₹99 lakhs with the authorities previously.
Final settlement order received on December 30, 2025, resulting in the closure of all associated contingent liabilities.

💡 Investors should view this as a positive development that removes legal uncertainty and financial risk at a fraction of the original demand. The management's decision to utilize the OTS scheme reflects prudent risk mitigation and balance sheet management.

DCM Limited to Close Trading Window from Dec 31, 2025 for Q3 Financial Results

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 23 Dec 2025, 03:11 PM

DCM Limited has announced the closure of its trading window for all designated persons starting December 31, 2025. This move is in compliance with SEBI (Prohibition of Insider Trading) Regulations ahead of the release of un-audited financial results for the quarter and nine months ending December 31, 2025. The window will remain closed until 48 hours after the financial results are officially declared to the stock exchanges. The specific date for the board meeting to approve these results will be announced separately.

Trading window closure begins on Wednesday, December 31, 2025
Closure is related to the un-audited financial results for the quarter and nine months ending Dec 31, 2025
Restriction remains in place until 48 hours post-result declaration
Applies to all Designated Persons and their immediate relatives as per the Company Code

💡 No action is required as this is a routine regulatory filing. Investors should look out for the upcoming announcement regarding the board meeting date for Q3 results.

DCM: Mr. Arjit Gupta Resigns as Company Secretary & Compliance Officer

🟡 NEUTRAL ⭐ 5/10

MANAGEMENT 📅 12 Dec 2025, 07:30 PM

DCM Limited announced the resignation of Mr. Arjit Gupta as Company Secretary & Compliance Officer, effective December 12, 2025. Mr. Gupta is leaving to pursue opportunities outside the organization, as stated in his resignation letter dated November 12, 2025. The company has initiated the process to file necessary forms with the Registrar of Companies and inform the stock exchanges. Investors should note this change in key managerial personnel.

Mr. Arjit Gupta resigned as Company Secretary & Compliance Officer effective December 12, 2025.
Resignation letter was dated November 12, 2025.
Mr. Gupta's ICSI Membership No. is A30696.

💡 Investors should monitor upcoming announcements regarding the appointment of a new Company Secretary & Compliance Officer. This change may have implications for corporate governance and compliance procedures.

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💰 Financial Performance

Revenue Growth by Segment

The Engineering Division's sales and other income declined by 75.68% YoY, falling from INR 374.41 lakh in FY24 to INR 91.06 lakh in FY25. Standalone revenue from operations for the full year FY25 was reported at INR 26.80 lakh. However, recent unaudited results for the half-year ended September 30, 2025, show a significant increase to INR 2,274.60 lakh, suggesting a recovery or new revenue streams compared to the INR 2,136.95 lakh in the corresponding previous half-year.

Geographic Revenue Split

The company operates in India and the USA, particularly within its IT and Engineering segments. Specific percentage splits per region are not disclosed in the provided documents.

Profitability Margins

The Operating Profit Margin improved significantly to 12.03% in FY25 from 0.37% in FY24. The Net Profit Ratio also turned positive at 5.66% in FY25 compared to -0.19% in FY24, primarily driven by an increase in net profit despite the operational challenges in the engineering segment.

EBITDA Margin

The Engineering Division reported a negative EBITDA (Profit/loss before finance cost, depreciation, and tax) of INR -298.70 lakh in FY25, worsening from INR -195.36 lakh in FY24. This decline is attributed to the continued lockout and lack of production volume.

Capital Expenditure

The company maintained property, plant, and equipment records, but specific planned CAPEX figures for future expansions were not disclosed. Depreciation for the Engineering Division was INR 304.32 lakh in FY25.

Credit Rating & Borrowing

CRISIL Ratings has migrated the company's bank facilities to 'CRISIL D/CRISIL D Issuer not cooperating' as of 2025. This rating indicates default or high risk of default, exacerbated by a lack of management cooperation and inadequate information for credit assessment.

⚙️ Operational Drivers

Raw Materials

The Engineering Division primarily requires grey iron for the manufacturing of castings, including cylinder heads and blocks. However, due to the lockout, raw material consumption for production was zero in FY25.

Capacity Expansion

The Engineering Division has 0 MT of production and sales as of FY25 due to a continuous lockout since October 22, 2019. No specific expansion plans for the engineering unit are mentioned given the industrial unrest.

Raw Material Costs

Raw material costs are currently negligible for the engineering segment due to the production halt. Revenue in this segment is primarily derived from scrap sales, which saw a significant volume reduction in FY25.

Manufacturing Efficiency

Manufacturing efficiency is currently non-existent in the Engineering Division with 0 MT production. Capacity utilization is 0% due to the ongoing lockout.

📈 Strategic Growth

Growth Strategy

The company is focusing on its IT services through its material subsidiary, DCM Infotech Limited, which provides infrastructure services like system administration and disaster management. It also maintains a presence in real estate to diversify away from the stalled engineering business.

Products & Services

Final products include grey iron castings, cylinder heads, cylinder blocks, and housing for the auto industry (currently inactive). Services include IT infrastructure management, system administration, storage management, and backup recovery.

Brand Portfolio

DCM, DCM Infotech.

Market Expansion

The company has a presence in India and the USA for its IT services, but specific expansion timelines are not provided.

Market Share & Ranking

The Engineering Division was historically one of India's large independent manufacturers of grey iron castings, but its current market share is negligible due to the operational halt.

Strategic Alliances

The company operates through five subsidiaries and one associate company, including the material subsidiary DCM Infotech Limited.

🌍 External Factors

Industry Trends

The engineering industry for auto castings is mature, but DCM is currently displaced due to internal labor issues. The IT services industry is evolving toward cloud and disaster management, where DCM Infotech is positioned.

Competitive Landscape

Key competitors include other independent iron foundries and IT infrastructure service providers, though specific names were not listed.

Competitive Moat

The company's historical moat in engineering (established in 1889) has been eroded by a 5-year lockout. Its current survival depends on the IT services subsidiary and real estate assets.

Macro Economic Sensitivity

The company is sensitive to the economic outlook in India and the USA, as well as changes in government purchase procedures and tax regimes.

Consumer Behavior

Demand is driven by auto players (cars, tractors, earth-moving equipment) for the engineering side and corporate infrastructure needs for the IT side.

Geopolitical Risks

Operations are subject to changes in international regulations and economic outlooks in the USA, which could affect the IT services segment.

⚖️ Regulatory & Governance

Industry Regulations

The company must comply with the SARFAESI Act regarding debt recovery and NHB guidelines for NPA classification. It also faces regulations related to industrial labor laws which led to the declared lockout.

Taxation Policy Impact

The company is subject to Indian corporate tax laws; however, it reported a loss before tax of INR 603.02 lakh in its engineering division for FY25.

Legal Contingencies

Pending litigation includes a matter before the Punjab VAT Tribunal, Chandigarh, and the Deputy Commissioner Appeal, Mohali. Additionally, a SARFAESI Act notice was issued on November 7, 2025, following an NPA classification on October 29, 2025.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the 'continued situation of lockout' at the Engineering Business Undertaking since 2019, which continues to adversely affect key financials. There is also a risk of asset seizure under the SARFAESI Act.