DECCANCE - Deccan Cements
📢 Recent Corporate Announcements
Deccan Cements Limited has issued a public notice to address and clarify defamatory allegations made by a former employee, Mr. Pasupuleti Suresh Babu. The company confirmed that multiple legal challenges, including NGT Appeals (44/2022 and 27/2023) and a Telangana High Court Writ Petition (34520/2023), have all been dismissed as baseless. The individual was reportedly asked to resign due to behavioral issues and illegally occupied company quarters for 22 months before police intervention. The company maintains its 5-Star rating from the Ministry of Mines and various ISO certifications, asserting that its environmental and operational standards remain intact.
- NGT Appeals No. 44/2022 and 27/2023 filed against the company were dismissed by the tribunal.
- Telangana High Court dismissed Writ Petition No. 34520/2023 as baseless.
- Company holds a 5-Star rating from the Ministry of Mines for Sustainable Development Framework implementation.
- Ex-employee allegedly occupied company quarters for 22 months post-resignation before being vacated by police.
- Public notice serves as a warning to media and stakeholders against defamatory claims by the individual.
Deccan Cements reported a consolidated net loss of ₹55.76 lakhs for the quarter ended December 31, 2025, compared to a profit of ₹906.67 lakhs in the previous quarter. While revenue from operations grew 13.3% year-on-year to ₹13,085 lakhs, it declined 6.7% on a sequential basis. The performance was primarily dragged down by a 28% sequential spike in power and fuel expenses and a 68% increase in finance costs. The company also recognized expenses related to the implementation of new labor codes during the quarter.
- Consolidated Revenue from Operations stood at ₹13,085.02 lakhs, up 13.3% YoY but down 6.7% QoQ.
- Reported a consolidated Net Loss of ₹55.76 lakhs against a profit of ₹80.89 lakhs in the year-ago period.
- Power and Fuel expenses surged to ₹5,170.92 lakhs from ₹4,027.46 lakhs in the preceding quarter.
- Finance costs increased significantly to ₹550.41 lakhs from ₹326.51 lakhs in Q2 FY26.
- Earnings Per Share (EPS) turned negative at ₹(0.40) for the quarter.
Deccan Cements reported a consolidated net loss of ₹55.76 Lakhs for the quarter ended December 31, 2025, a sharp decline from a profit of ₹80.89 Lakhs in the year-ago period. While revenue from operations grew 13.3% YoY to ₹13,085.02 Lakhs, it witnessed a sequential decline of 6.7%. The performance was primarily dragged down by a significant spike in power and fuel expenses, which rose to ₹5,170.92 Lakhs from ₹4,027.46 Lakhs in the previous quarter. Additionally, the company recognized financial impacts related to the implementation of new Labour Codes during this period.
- Consolidated Revenue from operations stood at ₹13,085.02 Lakhs, up 13.3% YoY but down 6.7% QoQ.
- Reported a consolidated net loss of ₹55.76 Lakhs compared to a profit of ₹906.67 Lakhs in Q2 FY26.
- Power and fuel costs surged 28.4% sequentially to ₹5,170.92 Lakhs.
- Finance costs increased to ₹550.41 Lakhs from ₹326.51 Lakhs in the preceding quarter.
- Earnings Per Share (EPS) turned negative at ₹(0.40) for the quarter.
Deccan Cements Limited has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The document, issued by KFin Technologies Limited (the company's RTA), confirms the processing of dematerialization and rematerialization requests for the quarter ended December 31, 2025. This is a standard regulatory requirement to ensure that share records are accurately maintained with the depositories. The filing indicates that the company is adhering to its periodic administrative obligations.
- Compliance certificate submitted for the quarter ended December 31, 2025
- Issued by Registrar and Share Transfer Agent (RTA) KFin Technologies Limited
- Confirms processing of dematerialization and rematerialization requests as per SEBI norms
- Filed with both BSE and National Stock Exchange (NSE) on January 13, 2026
Deccan Cements Limited has announced the closure of its trading window starting January 1, 2026, for the quarter ending December 31, 2025. This closure is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, and applies to directors and designated employees. The company has tentatively scheduled the declaration of its financial results for February 12, 2026. The trading window is expected to reopen 48 hours later, on February 14, 2026.
- Trading window closure begins on January 1, 2026, for the quarter ending December 31, 2025.
- Financial results for the quarter are tentatively scheduled to be declared on February 12, 2026.
- The trading window will remain closed until 48 hours after the result declaration, reopening on February 14, 2026.
- The restriction applies to all Directors, Designated employees, and their immediate family members.
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.