Deccan Cements Limited received shareholder approval to raise ₹103 crore through the issuance of Compulsorily Convertible Debentures (CCDs) to repay existing term loans. The special resolution passed with 99.9977% of votes in favour during the postal ballot process concluded on June 13, 2026. The issuance will allow the company to address its funding requirements for liabilities owed to State Bank of India.

The Board of Directors sought consent for the issuance of up to 14,40,559 CCDs on a preferential basis. The remote e-voting period commenced on May 15, 2026, and concluded on June 13, 2026, with the voting rights reckoned as on May 8, 2026. Mr. Vikas Sirohiya of M/s. P S Rao & Associates served as the scrutinizer for the process.

The CCDs will be issued at a price of ₹715 each, carrying a coupon rate of 6% per annum payable monthly. These instruments are unsecured and will convert into equity shares within 18 months from the date of allotment at a 1:1 ratio. The conversion price of ₹715 includes a premium of ₹710 per equity share of face value ₹5.

Funds raised from the issuance, totaling ₹1,02,99,99,685, will be utilized to repay a term loan of ₹330.91 crore availed from State Bank of India, IFB, Somajiguda, Hyderabad. The loan carries an interest rate of 8.5% per annum. The company plans to utilize the proceeds on or before July 31, 2026.

The proposed allotment will result in the allottees holding 9.33% of the post-preferential issue capital, while the promoters' stake will dilute from 56.25% to 51.00%. The company confirmed that the issuance will not result in any change in control. CARE Ratings Limited has been appointed as the Monitoring Agency to oversee the utilization of proceeds.

Voting Breakdown

Deccan Cements Limited reported a consolidated net profit of ₹285.78 crore for the financial year ended March 31, 2026, a substantial increase from ₹75.19 crore in the previous year. The company's revenue from operations for FY26 rose to ₹6,356.14 crore, compared to ₹5,269.77 crore in FY25. The board has recommended a final dividend of Re 0.50 per share, which is 10% of the face value of ₹5 each, pending approval at the upcoming Annual General Meeting.

The standalone financial results for the year ended March 31, 2026, showed a net profit of ₹285.91 crore, up from ₹75.33 crore in the corresponding period last year. Revenue from operations in the standalone entity stood at ₹6,356.14 crore. The company recognized an exceptional item of ₹128.41 crore during the quarter ended March 31, 2026, primarily due to the profit from the sale of land situated at Solipet village in Rangareddy district.

Q4 Standalone Performance

For the quarter ended March 31, 2026, Deccan Cements reported standalone net profit of ₹4.73 crore, compared to ₹7.95 crore in the same quarter of the previous year. Quarterly standalone revenue came in at ₹2,138.93 crore, a significant jump from ₹1,189.20 crore in the corresponding period last year.

Full-Year Financial Performance

The company's total income for the consolidated results increased to ₹6,432.80 crore in FY26 from ₹5,431.76 crore in the previous year. Total expenses for the year were reported at ₹6,218.83 crore. The board approved the audited standalone and consolidated financial results prepared in accordance with Indian Accounting Standards (Ind-AS) at its meeting held on May 29, 2026.

Board Decisions and Appointments

The Board appointed M/s Aruna Prasad & Co, Cost Accountants, as the Cost Auditors for the financial year 2026-27. Additionally, M/s M Bhaskara Rao & Co, Chartered Accountants, were appointed as Internal Auditors for FY 2026-27. The statutory auditors, M/s M. Anandam & Co, issued an unmodified audit report on the standalone and consolidated financial results.

The company noted that the implementation of new Labour Codes resulted in an increase in gratuity liability by ₹57.53 lakhs and compensated absences by ₹12.78 lakhs. This impact has been presented under employee benefits expense in the Statement of Profit and Loss. The company continues to monitor the finalisation of Central and State rules regarding these codes.