Deccan Cements Limited (DECCANCE)
₹529.55 -1.17% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Deccan Cements' revenue was ₹219 Cr (+45.7% year on year, +2.5% on the previous quarter), and net profit ₹-7.4 Cr (against a profit a year earlier); the operating margin was 7.7%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹219 | +45.7% | +2.5% |
| Operating profit | ₹16.8 | -39.6% | -2.2% |
| Net profit | ₹-7.4 | to loss | to loss |
| EPS (₹) | -5.24 | to loss | to loss |
| Operating margin | 7.7% | — | — |
DECCANCE delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 81.88% of the DECCANCE shares traded on NSE were taken to delivery, against the stock's own 20-session average of 59.48%. That is higher than usual for this stock. Turnover was only ₹87 lakh, so a handful of trades can move this figure.
Delivery in the last 5 sessions: 57.6% · 66.8% · 71.6% · 84.8% · 81.9%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Deccan Cements Limited has submitted the compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended September 30, 2026. The certificate was issued by the company's Registrar and Share Transfer Agent, KFin Technologies Limited, on October 2, 2026. It confirms that the details of securities dematerialized or rematerialized during the period have been furnished to the stock exchanges. This is a standard quarterly administrative filing with no financial or operational impact.
- Quarter ended: September 30, 2026
- RTA Certificate dated: October 2, 2026
- Filing submitted to BSE and NSE on October 12, 2026
- Issued under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018
Deccan Cements has submitted the Scrutinizer's Report and voting results for its 46th Annual General Meeting held on September 29, 2026. A total of 89,83,890 shares were polled (representing 64.14% of the 1,40,07,500 total shares). Key resolutions passed included the ratification of excess remuneration paid to CMD Ms. P. Parvathi for FY25-26 and approval of minimum remuneration to her for FY26-27, with 99.9999% votes cast in favor. The cost auditor's remuneration for FY26-27 was also ratified with 100% approval.
- AGM voting concluded with 89,83,890 shares polled out of 1,40,07,500 total shares (64.1363% turnout)
- Ratification of excess remuneration paid to CMD Ms. P. Parvathi for FY26 passed with 99.9999% approval
- Approval of minimum remuneration to CMD Ms. P. Parvathi for FY27 passed with 99.9999% approval
- Ratification of Cost Auditor's remuneration for FY27 approved with 100% votes in favor
Deccan Cements Limited has issued the notice for its 46th Annual General Meeting (AGM) to be held on September 29, 2026, via video conferencing. The company has proposed a final dividend of 10% (₹0.50 per share of face value ₹5) for FY 2025-26, with the record date set for September 22, 2026. Key special resolutions include ratifying ₹66.17 lakh in excess remuneration paid to Chairperson and Managing Director Ms. P. Parvathi for FY26 due to inadequate profits, along with approving a minimum remuneration structure (₹7.50 lakh monthly salary plus allowances) for FY27.
- 46th Annual General Meeting scheduled for Tuesday, September 29, 2026, at 11:00 AM IST via VC/OAVM
- Final dividend of ₹0.50 per share (10% on ₹5 face value) proposed with record date on September 22, 2026
- Seeking ratification for ₹66,17,306 excess remuneration paid to CMD Ms. P. Parvathi during FY26 due to profit inadequacy
- Proposed FY27 minimum monthly base salary of ₹7,50,000 plus 2% net profit commission and perquisites for the CMD
Credit rating agency Infomerics has revised its rating for Deccan Cements' proposed ₹25 Cr Non-Convertible Debentures (NCDs) to 'IVR BB+/Negative (ISSUER NOT COOPERATING)' from 'IVR BBB-/Negative'. The company clarified that it had already dropped its ₹50 Cr NCD fundraising plan and formally requested withdrawal of the rating exercise on March 30, 2026, following the budget completion of its expansion project. Infomerics proceeded with the review despite the cancellation notice, leading to the 'Issuer Not Cooperating' classification. Since no NCDs were ever issued against this mandate, there is no direct debt servicing or default impact.
- Long-term rating revised to 'IVR BB+/Negative (ISSUER NOT COOPERATING*)' from 'IVR BBB-/Negative' on August 20, 2026.
- Mandate pertained to a proposed NCD issue of up to ₹25 Cr (out of an earlier planned ₹50 Cr issue).
- Company formally communicated withdrawal of the rating mandate on March 30–31, 2026, as the expansion was completed within budget without NCD debt.
- Agency proceeded with the review citing lack of information, resulting in the INC tag.
Deccan Cements Limited has submitted its Monitoring Agency Report for the quarter ended June 30, 2026, regarding the utilization of proceeds from its preferential issue of Compulsorily Convertible Debentures (CCDs). The report, issued by CARE Ratings Limited, confirms that there has been zero deviation or variation from the intended objects of the Rs 102.99 crore fundraise. This filing is a mandatory regulatory disclosure to ensure transparency in how the company deploys capital raised from investors.
- Total amount aggregating to Rs 102.99 crore raised through Private Placement/Preferential Issue of CCDs.
- Monitoring Agency (CARE Ratings Limited) reported Nil deviation from the objects of the issue.
- The report covers the utilization status for the quarter ended June 30, 2026.
- Monitoring Agency Agreement was executed on June 23, 2026.
CARE Ratings has downgraded Deccan Cements' long-term rating from CARE BBB+ to CARE BBB (Stable), while reaffirming the short-term rating at CARE A3+. The downgrade is significant given the company's high leverage, with total debt of ₹753 Cr nearly equal to its net worth of ₹751 Cr. The company is currently committed to a massive ₹895.48 Cr expansion project, which represents approximately 140% of its TTM revenue of ₹636 Cr. This rating action suggests increased perceived risk in the company's ability to service debt during this capital-intensive phase.
- Long-term credit rating downgraded to CARE BBB / Stable from CARE BBB+ on August 7, 2026
- Short-term rating reaffirmed at CARE A3+ by CARE Ratings Limited
- Company is managing a ₹895.48 Cr capacity expansion project, currently in Capital Work-in-Progress
- Total debt of ₹753 Cr is high relative to the ₹770 Cr market capitalization
- TTM Net Profit Margin remains thin, having dropped to 1.00% in FY25 before a slight recovery
Deccan Cements reported a consolidated net loss of ‹7.39 Cr for Q1 FY27, a sharp reversal from a profit of ‹15.35 Cr in the year-ago period. While revenue grew 45.7% YoY to ‹219.34 Cr, profitability was severely impacted by a 351% surge in finance costs (‹15.67 Cr) and a 132% increase in depreciation (‹15.52 Cr). These costs likely stem from the commissioning or servicing of its ‹895.48 Cr expansion project. The company also recognized an exceptional loss of ‹2.27 Cr related to a regulatory demand for infrastructure cess.
- Revenue from operations grew 45.7% YoY to ‹219.34 Cr from ‹150.56 Cr.
- Consolidated net loss of ‹7.39 Cr vs a profit of ‹15.35 Cr in Q1 FY26.
- Finance costs surged to ‹15.67 Cr, up from ‹3.47 Cr in the same quarter last year.
- Exceptional item of ‹2.27 Cr provided for mineral bearing land infrastructure cess demand.
- Final dividend record date fixed for September 22, 2026, with payment by October 15, 2026.
Deccan Cements reported a strong 45.7% YoY revenue growth to ₹219.34 Cr for Q1 FY27, yet swung to a net loss of ₹7.39 Cr from a profit of ₹15.35 Cr in the year-ago period. The bottom line was severely impacted by a 351% surge in finance costs (₹15.67 Cr) and a 132% increase in depreciation (₹15.52 Cr), likely tied to its massive ₹895.48 Cr expansion project. The company has fixed September 22, 2026, as the record date for the FY26 final dividend. During the quarter, the company also issued unlisted NCDs and CCDs to bolster its capital structure.
- Revenue from operations increased 45.7% YoY to ₹219.34 Cr in Q1 FY27.
- Reported a net loss of ₹7.39 Cr compared to a profit of ₹15.35 Cr in Q1 FY26.
- Finance costs surged to ₹15.67 Cr from ₹3.47 Cr YoY, a 351% increase.
- Expansion project in progress (CWIP) stands at ₹895.48 Cr, which is 114% of the current market cap.
- Final dividend record date fixed for September 22, 2026, with payment by October 15, 2026.
Deccan Cements reported a 45.7% YoY increase in revenue to ₹219.34 Cr for Q1 FY27. However, the company posted a consolidated net loss of ₹7.39 Cr, a sharp reversal from the ₹15.35 Cr profit in Q1 FY26. This loss is primarily driven by a 351% surge in finance costs to ₹15.67 Cr and a 132% increase in depreciation to ₹15.52 Cr, reflecting the impact of its ₹895.48 Cr expansion project. The company also recognized an exceptional charge of ₹2.27 Cr for a mining cess demand.
- Revenue from operations grew 45.7% YoY to ₹219.34 Cr from ₹150.56 Cr.
- Finance costs surged to ₹15.67 Cr from ₹3.47 Cr in the previous year's quarter.
- Depreciation and amortization expenses increased to ₹15.52 Cr from ₹6.68 Cr YoY.
- Exceptional item of ₹2.27 Cr provisioned for mineral bearing land infrastructure cess in Telangana.
- Record date for final dividend set for September 22, 2026, with payment by October 15, 2026.
Deccan Cements Limited has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by its Registrar and Share Transfer Agent (RTA), KFin Technologies Limited, confirms that share certificates received for dematerialization during the quarter ended June 30, 2026, have been processed. This is a standard administrative filing required to maintain the integrity of electronic shareholding records. There is no impact on the company's financial performance or business operations.
- Compliance certificate issued for the quarter ended June 30, 2026
- Certificate provided by RTA KFin Technologies Limited dated July 01, 2026
- Confirms processing of dematerialization and rematerialization requests as per SEBI norms
- Filing submitted to exchanges on July 13, 2026
CRISIL has downgraded Deccan Cements' long-term rating from BBB/Stable to BB/Stable and short-term rating from A3+ to A4+, categorizing the company as 'Issuer Not Cooperating' (INC). The company has formally disputed this action, stating it had already repaid its entire term loans and informed CRISIL on July 6, 2026, prior to the rating release. This development is critical as the company is currently executing a massive Rs 895.48 Cr expansion project, which represents approximately 141% of its TTM revenue. The 'INC' status typically suggests a breakdown in information flow between the company and the rating agency, which may concern lenders despite the company's claims of repayment.
- Long-term rating downgraded from CRISIL BBB/Stable to CRISIL BB/Stable (ISSUER NOT COOPERATING) on July 6, 2026.
- Short-term rating downgraded from CRISIL A3+ to CRISIL A4+ (ISSUER NOT COOPERATING).
- Company claims to have paid the entire Term Loans to respective banks as of July 6, 2026.
- The previous rating action was an upgrade on July 31, 2025.
- Company is currently managing a Capital Work-in-Progress (CWIP) of Rs 895.48 Cr for capacity expansion.
Deccan Cements Limited has announced the closure of its trading window starting July 1, 2026, for the quarter ending June 30, 2026. This closure is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, affecting directors and designated employees. The company tentatively expects to declare its financial results on August 12, 2026. Consequently, the trading window will remain closed until August 14, 2026, which is 48 hours after the results are made public.
- Trading window closure begins on July 1, 2026, for the June quarter.
- Financial results for the quarter ended June 30, 2026, are tentatively scheduled for August 12, 2026.
- The window will reopen on August 14, 2026, 48 hours after the result declaration.
- The restriction applies to Directors, Designated employees, and their immediate relatives.
Deccan Cements Limited has successfully allotted securities totaling approximately INR 660 crores to raise capital. The fundraise includes INR 103 crores through Compulsorily Convertible Debentures (CCDs) and INR 557 crores through two series of Non-Convertible Debentures (NCDs). Specifically, the company allotted 14.4 lakh CCDs at INR 715 each and 55,700 NCDs with a face value of INR 1 lakh each. This substantial capital injection follows a board approval from May 2026 and marks a significant step in the company's financial strategy.
- Allotted 14,40,559 CCDs at INR 715 each, aggregating to INR 102.99 crores
- Issued 15,000 Series A NCDs and 40,700 Series B NCDs, totaling INR 557 crores
- Total capital raised through this preferential issue amounts to approximately INR 659.99 crores
- The CCDs are compulsorily convertible, which will lead to equity dilution in the future
Deccan Cements Limited has received shareholder approval to raise up to ₹103 crore through the issuance of 14,40,559 Compulsorily Convertible Debentures (CCDs) on a preferential basis. The CCDs are priced at ₹715 each and will be converted into equity shares at a 1:1 ratio within 18 months. The primary objective of this fundraise is to repay existing term loans and related liabilities, which is expected to strengthen the company's balance sheet. The resolution was passed with an overwhelming majority, with 99.99% of votes cast in favor.
- Approved issuance of up to 14,40,559 Compulsorily Convertible Debentures (CCDs) to raise ₹103 crore.
- CCDs are priced at ₹715 per unit, representing a significant premium over the ₹5 face value.
- Proceeds earmarked for the repayment of existing term loans and associated liabilities.
- CCDs will be converted into equity shares within a maximum period of 18 months from allotment.
- The special resolution passed with 99.9977% of valid votes in favor via postal ballot.
Deccan Cements Limited has clarified that Infomerics Valuation and Rating Limited revised its credit rating to 'IVR BBB-/Negative (ISSUER NOT COOPERATING)' for a proposed NCD issue. The company had previously planned to raise Rs. 50 crores via NCDs but withdrew the proposal in March 2026 as its expansion project was completed within budget with lower capital costs. The rating agency proceeded with the review despite the withdrawal notice, leading to the 'non-cooperating' status due to lack of information for a dropped instrument.
- Rating revised from IVR BBB+/Positive to IVR BBB-/Negative (ISSUER NOT COOPERATING) by Infomerics.
- The rating action pertains to a proposed Rs. 25 crore NCD mandate that the company had already withdrawn.
- Company cancelled the total Rs. 50 crore NCD fundraise plan as the expansion project was completed under budget.
- Official withdrawal communication was sent to the rating agency on March 31, 2026.
- The downgrade is procedural/technical rather than a reflection of deteriorating financial health.
Financial Performance
Revenue Growth by Segment
The company operates in a single segment: Manufacturing and Selling of Cement. Revenue from operations for Q2 FY26 stood at INR 140.31 Cr, representing a 16.48% YoY growth compared to INR 120.46 Cr in Q2 FY25. However, on a half-yearly basis, H1 FY26 revenue of INR 290.87 Cr was nearly flat, declining 0.59% from INR 292.61 Cr in H1 FY25. Annual revenue for FY25 saw a significant decline of 34.08% to INR 526.98 Cr from INR 799.45 Cr in FY24.
Geographic Revenue Split
Not disclosed in available documents, though the company is headquartered in Hyderabad and operates primarily in Southern India.
Profitability Margins
Profitability has seen a sharp decline; Net Profit Margin dropped from 5.00% in FY24 to 1.00% in FY25. Operating Profit Margin also contracted from 10.00% to 4.00% in the same period. For H1 FY26, the consolidated Profit After Tax was INR 24.42 Cr, a significant recovery from the INR 1.24 Cr loss reported in H1 FY25.
EBITDA Margin
EBITDA margin for FY25 was 6.72%, a sharp decrease from 11.74% in FY24. This 42.76% reduction in core profitability reflects higher input costs and lower realizations during the fiscal year.
Capital Expenditure
The company is undergoing a massive expansion with Capital Work-in-Progress (CWIP) standing at INR 895.48 Cr as of September 30, 2025, up 11.19% from INR 805.38 Cr in March 2025. This planned expenditure is nearly 2.4 times the current Property, Plant, and Equipment base of INR 368.51 Cr.
Credit Rating & Borrowing
The company holds a credit rating of CARE BBB+ (Stable) and IVR BBB+ (Positive) for its proposed NCDs. Interest coverage ratio significantly weakened by 72.29%, falling from 6.64x in FY24 to 1.84x in FY25 due to increased debt servicing requirements.
Operational Drivers
Raw Materials
Limestone is the primary raw material, supported by coal for power generation. Cost of materials consumed in H1 FY26 was INR 40.09 Cr, representing 13.78% of total revenue.
Import Sources
Not disclosed in available documents; limestone is typically sourced from local captive mines.
Capacity Expansion
Current Property, Plant, and Equipment is valued at INR 368.51 Cr. The company is executing a major expansion project evidenced by INR 895.48 Cr currently in Capital Work-in-Progress, which will significantly increase the total installed capacity upon completion.
Raw Material Costs
Raw material costs for FY25 were INR 69.55 Cr. In H1 FY26, material costs rose to INR 40.09 Cr compared to INR 36.78 Cr in H1 FY25, a 9% YoY increase, impacting gross margins.
Strategic Growth
Growth Strategy
Growth is targeted through the commissioning of the INR 895.48 Cr capacity expansion project and the monetization of an idle land bank of 17.83 acres to improve liquidity and fund operations.
Products & Services
The company manufactures and sells various grades of cement bags to retail and institutional customers.
Brand Portfolio
Deccan Cements.
Market Expansion
The company is focusing on strengthening its presence in the Southern Indian market through its 100% subsidiary, Deccan Swarna Cements Private Limited.
Strategic Alliances
Wholly owned subsidiary: Deccan Swarna Cements Private Limited.
External Factors
Industry Trends
The cement industry is currently facing a period of high capacity addition and regional price volatility. Deccan is positioning itself by tripling its asset base to achieve better economies of scale.
Competitive Landscape
Competes with regional and national cement manufacturers in the Southern Indian market.
Competitive Moat
The company's moat is built on 50 years of limestone reserves and captive power generation, providing long-term raw material security and a cost advantage over non-integrated players.
Macro Economic Sensitivity
Highly sensitive to GDP growth and interest rates; high interest rates discourage housing construction, directly reducing demand for cement.
Consumer Behavior
Increasing preference for branded cement in the individual home builder (IHB) segment and rising demand from government infrastructure projects.
Geopolitical Risks
Fluctuations in global coal prices due to geopolitical tensions impact the cost of power generation for captive plants.
Regulatory & Governance
Industry Regulations
Operations are governed by mining leases for limestone extraction and strict pollution control board norms for cement manufacturing and captive power emissions.
Environmental Compliance
The company publishes Business Responsibility reports and maintains captive power plants subject to environmental norms.
Taxation Policy Impact
The company reported a current tax liability of INR 8.48 Cr as of September 30, 2025. The effective tax rate for H1 FY26 was approximately 25.8% based on a PBT of INR 32.93 Cr.
Risk Analysis
Key Uncertainties
The primary risk is the timely commissioning and stabilization of the INR 895.48 Cr expansion project; any delay could lead to cost overruns and liquidity stress given the 1.84x interest coverage.
Geographic Concentration Risk
High concentration in Southern India, making the company vulnerable to regional economic downturns or political changes in Telangana and Andhra Pradesh.
Third Party Dependencies
Dependent on external vendors for coal procurement and logistics providers for cement distribution.
Technology Obsolescence Risk
Low risk for core cement products, but failure to adopt modern energy-efficient manufacturing technologies could impact long-term cost competitiveness.
Credit & Counterparty Risk
Debtors Turnover Ratio fell 51.47% to 9.34x in FY25, indicating a significant increase in credit period or potential issues with receivable collections.
