Deccan Cements Q1FY27 net loss widens as EBITDA margin contracts sharply
Deccan Cements Limited reported a Q1FY27 standalone net loss of ₹738.68 lakh, reversing from a profit of ₹1,535.10 lakh in Q1FY26. Revenue rose 45.7% YoY to ₹219.34 crore, but EBITDA margin contracted sharply to 7.7% from 18.52% due to rising power, fuel, and freight costs. A provision of ₹227.48 lakh for mineral bearing land cess further impacted results. The Board approved the final dividend for FY26, with the AGM scheduled for September 29, 2026.
*this image is generated using AI for illustrative purposes only.
Deccan Cements Limited reported a standalone net loss of ₹738.68 lakh for the quarter ended June 30, 2026 (Q1FY27), marking a sharp reversal from the net profit of ₹1,535.10 lakh recorded in Q1FY26. This deterioration in bottom-line performance was primarily driven by a significant contraction in profitability margins despite robust top-line growth. The company’s EBITDA declined to ₹168 million from ₹279 million in the corresponding period last year, with the EBITDA margin compressing steeply to 7.7% from 18.52%. Additionally, Deccan Cements made a provision of ₹227.48 lakh towards mineral bearing land infrastructure cess following a demand notice from the Department of Mines and Geology, Telangana.
The Board of Directors approved the unaudited financial results at its meeting held on August 12, 2026, in Hyderabad. The results were reviewed by M. Anandam & Co., the statutory auditors, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company also fixed September 22, 2026, as the record date for the payment of the final dividend for FY2025-26, subject to shareholder approval at the upcoming Annual General Meeting (AGM).
Financial Performance Overview
Revenue from operations stood at ₹219.34 crore in Q1FY27, up from ₹213.89 crore in Q4FY26 and significantly higher than the ₹150.56 crore reported in Q1FY26, reflecting an 11.8% quarter-on-quarter increase and a substantial year-on-year growth. However, total expenses increased to ₹233.68 crore from ₹225.75 crore in the previous quarter. Key cost drivers included power and fuel expenses, which rose to ₹92.09 crore from ₹79.91 crore in Q4FY26, and freight charges, which remained elevated at ₹45.13 crore. The following table summarises the key financial metrics across comparable periods:
| Particulars | Q1FY27 (₹ Lakh) | Q4FY26 (₹ Lakh) | Q1FY26 (₹ Lakh) |
|---|---|---|---|
| Revenue from Operations | 21,933.84 | 21,389.27 | 15,055.95 |
| Total Expenses | 23,367.59 | 22,575.01 | 13,283.24 |
| Profit/(Loss) Before Tax | (949.49) | 201.16 | 2,046.58 |
| Net Profit/(Loss) | (738.68) | 472.51 | 1,535.10 |
| Earnings Per Share (Basic) | (5.24) | 3.37 | 10.96 |
The EBITDA performance further highlights the extent of margin deterioration during the quarter, as presented below:
| Metric | Q1FY27 | Q1FY26 | Change (YoY) |
|---|---|---|---|
| EBITDA | ₹168M Rupees | ₹279M Rupees | Decline |
| EBITDA Margin | 7.70% | 18.52% | -10.82 pp |
The company's consolidated results mirrored the standalone figures, with a net loss attributable to owners of the parent company at ₹738.85 lakh. The consolidated revenue from operations was identical to the standalone figure at ₹219.34 crore, reflecting that the wholly-owned subsidiary, Deccan Swarna Cements Private Limited, contributed negligible revenue or had offsetting entries in this period.
What the Numbers Show
The widening loss despite robust top-line growth highlights significant margin compression. While revenue grew by nearly ₹68.78 crore year-on-year, total expenses surged by over ₹100 crore, indicating that input cost inflation has not been fully passed on to customers or absorbed through efficiency gains. The EBITDA margin collapse — from 18.52% to 7.7% year-on-year — reflects the combined impact of elevated power, fuel, and freight costs squeezing operating profitability. The exceptional item provision of ₹227.48 lakh further exacerbated the bottom line, representing a direct impact from regulatory compliance costs in Telangana. Finance costs also rose sharply to ₹15.67 crore from ₹3.47 crore in the same period last year, likely due to the issuance of unlisted secured Non-Convertible Debentures (NCDs) and Compulsory Convertible Debentures (CCDs) during the quarter.
Corporate Actions and AGM Details
Alongside the financial results, the Board approved the Directors' Report for FY2025-26 and scheduled the 46th Annual General Meeting for September 29, 2026. The meeting will be conducted via Video Conferencing (VC) or Other Audio-Visual Means (OAVM). Shareholders must hold shares as of September 22, 2026, to participate in voting and receive the final dividend, which is scheduled for payment on October 15, 2026, if approved by shareholders.
Historical Stock Returns for Deccan Cements
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.54% | +1.29% | +3.27% | -22.61% | -46.84% | -18.26% |
Will Deccan Cements adjust its cement pricing strategy in Q2FY27 to offset the persistent rise in power, fuel, and freight costs?
How will the ₹227.48 lakh provision for mineral bearing land infrastructure cess impact the company's long-term operational costs and regulatory compliance strategy in Telangana?
What is the expected timeline for Deccan Swarna Cements Private Limited to contribute meaningfully to consolidated revenue after its negligible performance in Q1FY27?
18
Access 50+ Readymade Screeners 
Use 200+ Custom Filters 
Get Full Market Insights 
