Deccan Cements passes all resolutions at 46th AGM, profit up 279%
- Deccan Cements reported a 279.54% rise in profit after tax to ₹28.59 crore for FY26, up from ₹7.53 crore in FY25
- EBITDA rose 48.81% to ₹76.76 crore, with total turnover growing 20.62% to ₹635.61 crore
- All six resolutions were passed at the 46th AGM held on September 29, 2026, with voting participation at 64.14% of outstanding shares
- Shareholders approved the final dividend of ₹0.50 per share (10%) for FY26 with 99.9998% votes in favour
- The company raised ₹660 crore via CCDs and NCDs in June 2026 to repay term loans from its brownfield expansion
*this image is generated using AI for illustrative purposes only.
Deccan Cements Limited reported a 279.54% rise in profit after tax to ₹28.59 crore for FY26, compared to ₹7.53 crore in the previous year, as shareholders approved all six resolutions at its 46th Annual General Meeting.
The 46th AGM was held on September 29, 2026 via video conferencing, running from 11:00 am to 12:10 pm. A total of 139 members participated in voting, holding 89,83,890 shares in aggregate. Remote e-voting was open from September 26, 2026 at 9:00 am to September 28, 2026 at 5:00 pm, with the cut-off date for eligible voters set at September 22, 2026. KFin Technologies Limited served as the service provider for the e-voting platform, and V. Shankar of V Shankar & Co., Company Secretaries, was appointed as scrutinizer by the Board at its meeting on August 12, 2026.
Financial performance
The company's top-line growth translated into significant margin expansion. EBITDA rose 48.81% to ₹76.76 crore, while profit before exceptional items and tax increased 99.07% to ₹21.41 crore. The brownfield expansion project reached commercial production in December 2025, raising cement operating capacity to 4 MTPA and WHRS to 12.81 MW, supporting total sales of 16.22 lakh MT in FY26 against 13.90 lakh MT in FY25.
| Metric | FY26 | FY25 | Change |
|---|---|---|---|
| Cement sales volume | 16.22 lakh MT | 13.90 lakh MT | +16.68% |
| Revenue from cement sales | ₹628.94 crore | ₹519.64 crore | +21.03% |
| Total turnover | ₹635.61 crore | ₹526.98 crore | +20.62% |
| EBITDA | ₹76.76 crore | Not disclosed | +48.81% |
| Profit after tax | ₹28.59 crore | ₹7.53 crore | +279.54% |
AGM voting results
All six resolutions were passed with requisite majority. The consolidated voting participation stood at 64.14% of outstanding shares. The table below summarises the outcome for each resolution.
| Item | Resolution | Votes in favour | Votes against |
|---|---|---|---|
| 1 | Adoption of audited financial statements for FY26 (Ordinary) | 89,83,889 (100.00%) | 1 (0.00%) |
| 2 | Declaration of final dividend for FY26 (Ordinary) | 89,83,869 (99.9998%) | 21 (0.0002%) |
| 3 | Re-appointment of P. Parvathi as Director (Ordinary) | 89,83,879 (99.9999%) | 11 (0.0001%) |
| 4 | Ratification of cost auditor's remuneration for FY27 (Ordinary) | 89,83,889 (100.00%) | 1 (0.00%) |
| 5 | Ratification of excess remuneration paid to P. Parvathi, CMD, for FY26 (Special) | 89,83,879 (99.9999%) | 11 (0.0001%) |
| 6 | Payment of minimum remuneration to P. Parvathi, CMD, for FY27 (Special) | 89,83,879 (99.9999%) | 11 (0.0001%) |
For Resolutions 3, 5, and 6, the promoter and promoter group were noted as interested parties; however, the scrutinizer confirmed these were not in connection with material related party transactions.
Capital structure and outlook
In June 2026, the company raised ₹660 crore through the issuance of Compulsorily Convertible Debentures (CCDs) and Non-Convertible Debentures (NCDs). These funds were utilised to repay term loans availed for the brownfield expansion. The CCDs are scheduled for conversion into equity within 18 months, while NCDs will be repaid over seven years with a two-year moratorium, a structure designed to conserve cash positions. The directors recommended a final dividend of ₹0.50 per share (10%) for FY26, subject to shareholder approval, which was subsequently approved at the AGM.
Management noted that input costs for coal and diesel have risen due to global supply disruptions and weather conditions, impacting margins. Infrastructure projects, which account for 30% of domestic cement demand, are expected to remain key drivers for FY27, with the company anticipating improved conditions in the second half of the current fiscal year as state governments accelerate infrastructure spending.
What the numbers show
The divergence between revenue growth (21.03%) and EBITDA growth (48.81%) indicates strong operating leverage from the new capacity. While revenue grew roughly one-fifth, profits nearly doubled, suggesting that incremental sales from the expanded plant carried significantly higher margins than the base business, likely aided by better utilisation rates post-commissioning.
Historical Stock Returns for Deccan Cements
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| 0.0% | -3.94% | -5.04% | -6.26% | -50.23% | -23.61% |
How will the conversion of ₹660 crore in Compulsorily Convertible Debentures into equity within 18 months impact Deccan Cements' shareholding pattern and earnings per share?
Given the rise in coal and diesel costs, what specific hedging strategies or operational efficiencies is management implementing to protect margins in FY27?
With infrastructure projects driving 30% of demand, how sensitive are Deccan Cements' FY27 volume projections to potential delays in state government spending acceleration?
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