Deccan Gold Mines Limited announced its audited standalone and consolidated financial results for the quarter and financial year ended March 31, 2026, following a Board of Directors meeting held on May 14, 2026, conducted via Video-Conferencing. The Board approved the financial results along with the re-appointment of M/s. GHS Gupta & Co as Internal Auditor for FY 2026-2027. Statutory Auditors M/s. V.K Beswal & Associates, Chartered Accountants, issued an unmodified opinion on both standalone and consolidated financial results. The company described FY26 as a pivotal transition from an exploration-led company to an emerging production-oriented mining platform with diversified exposure across gold and critical minerals.

Standalone Financial Performance

The company reported a significant turnaround in its standalone quarterly performance, recording total income from operations of ₹167.89 million in Q4 FY26, up sharply from ₹17.19 million in Q4 FY25. Standalone net profit for the quarter stood at ₹66.94 million, compared to a net loss of ₹152.20 million in the corresponding quarter of the previous year. For the full financial year, standalone net loss narrowed considerably to ₹132.75 million (₹13.18 crore) from ₹466.97 million in the prior year, while total income from operations rose to ₹372.16 million from ₹45.40 million.

Consolidated Financial Performance

On a consolidated basis, the company reported a total profit of ₹57.35 million for Q4 FY26, compared to a loss of ₹221.94 million in the same period last year. For the full year, the consolidated loss stood at ₹644.56 million (₹73.17 crore), compared to ₹427.45 million in the previous fiscal year, primarily on account of investments and operational ramp-up expenses related to subsidiary Avelum Partners LLC, Kyrgyzstan, which reported a loss of ₹37.80 crore during the year as it progressed toward commercial production. Total income from operations for the consolidated entity for the year was ₹141.97 million, compared to ₹51.77 million in the prior year. The consolidated total comprehensive loss for the year stood at ₹731.70 million. The consolidated performance was significantly supported by associate company Geomysore Services India Pvt. Ltd., which reported a profit of ₹28.81 crore during FY26, with Deccan Gold's share of profit from Geomysore standing at ₹7.49 crore at a consolidated level.

Balance Sheet Highlights

As at March 31, 2026, standalone total assets stood at ₹6,182.53 million, up from ₹3,979.59 million in the previous year, driven primarily by a rise in non-current financial assets including investments of ₹3,726.56 million and loans of ₹1,901.64 million. Standalone total equity increased to ₹6,078.36 million from ₹2,927.67 million, reflecting the impact of the Rights Issue. On a consolidated basis, total assets were ₹5,628.02 million against ₹4,011.68 million previously, with total equity at ₹4,959.45 million.

Strategic Capital Deployment and Rights Issue Utilisation

Following the successful ₹314.70 crore Rights Issue completed earlier during FY26, the company undertook significant deleveraging during Q4, repaying loans worth ₹211.57 crore and substantially strengthening its balance sheet. The Rights Issue comprised 3,93,37,893 equity shares of ₹1 each at an issue price of ₹80 per share. The Board noted that the company utilised ₹314.65 crore of the proceeds, with key allocations as detailed below.

The ₹52.69 crore allocation to Geomysore Services was reallocated following shareholder approval at the EGM on February 20, 2026. During the quarter, Deccan Gold also increased its stake in Geomysore Services to 26% through secondary acquisition and participation in the rights issue, taking the carrying value of its investment in the associate company to ₹190.54 crore as of March 31, 2026. Additionally, the company allotted 8,65,000 equity shares on February 9, 2026, and 85,000 equity shares on March 3, 2026, to eligible employees at a price of ₹20 each under the Deccan Gold Mines Limited Stock Incentive Plan, 2024. During the quarter ended March 31, 2026, 9,50,000 options were exercised, and no options remained outstanding at the end of the period, with 41,00,000 options remaining exercisable.

Operational Milestones and Kyrgyzstan Production Outlook

The year witnessed an important milestone for India's gold mining sector with production-linked activities commencing at the Jonnagiri Gold Project in Andhra Pradesh, one of India's first modern private sector gold mining projects since Independence. Internationally, Deccan Gold continued advancing the Altyn Tor Gold Project in Kyrgyzstan through subsidiary Avelum Partners LLC. During the quarter, the company deployed ₹32.53 crore toward the project as it moved closer to commercial operations targeted from August 2026. The company announced successful commissioning of the gravity plant at Altyn Tor, while the Merril Crowe circuit is expected to be commissioned in June, enabling doré bar production from gravity concentrate. Semi-processed gold inventory has already been generated at site, representing an important operational milestone ahead of full-scale commercial production.

Looking ahead, the company has set out specific production and financial targets for its Kyrgyzstan operations. For FY27, the company targets gold production of 160 kg, with revenue guidance of ₹300 crore and a PAT estimate of ₹100 crore, of which attributable PAT to the company is estimated at ₹60 crore. For FY28, the gold production target is set at 300-350 kg.

The company also continued advancing exploration activities at the Bhalukona Nickel-Copper-PGE Composite Licence in Chhattisgarh through geological mapping, drone magnetic surveys, induced polarisation (IP) surveys, and rock-chip sampling, while drilling approvals are currently under process.

Auditor's Emphasis of Matter

M/s. V.K Beswal & Associates issued an unmodified opinion on the audited standalone and consolidated financial results. The auditors highlighted, without modifying their opinion, that the company has extended unsecured inter-company loans aggregating to ₹1,901.64 million to its subsidiary Avelum Partner LLC, Kyrgyzstan, at an interest rate of 15% per annum. Management has stated that repayment of both principal and accrued interest will commence upon the start of commercial production of gold at the Altyn Tor Gold Project in FY 2026-27, and that the carrying amount is considered fully recoverable. During the year, two new subsidiaries — Novadhatu Minerals Private Limited (incorporated October 27, 2025) and Deccan Minerao Mozambique LDA (incorporated April 16, 2025) — were incorporated; however, no capital was infused during the year.

Management Commentary and Outlook

Commenting on the company's performance and outlook, Dr. Hanuma Prasad Modali, Managing Director, Deccan Gold Mines Limited, said: "FY26 marks a pivotal transition for Deccan Gold from an exploration-led company to an emerging production-oriented mining platform with diversified exposure across gold and critical minerals. While the year reflected continued investments and project ramp-up costs, it also marked the beginning of production-linked value creation across our portfolio. The operational progress at Jonnagiri and the profitability reported by our associate company reinforce the long-term potential of our strategic investments."

"Equally important is the steady progress at the Altyn Tor Gold Project in Kyrgyzstan as it advances toward full-scale commercial production. At a time when resource security, domestic production capabilities, and critical minerals are becoming strategically important globally, Deccan Gold is well positioned across exploration, development, and production-linked assets in multiple jurisdictions. Our focus remains on disciplined execution, responsible growth, and building a globally competitive mining platform aligned with India's evolving resource priorities," added Dr. Hanuma.

Backed by a strengthened balance sheet, increasing production-linked exposure, and a growing international portfolio spanning India, Kyrgyzstan, Finland, UAE, Tanzania, Spain, and Mozambique, the company remains focused on building sustainable long-term value through responsible mining and disciplined capital allocation.

Deccan Gold Mines has achieved a landmark milestone with the commissioning of the Jonnagiri Gold Mine, recognised as India's first new private gold mine to be established since Independence. The project represents a significant development in India's domestic gold mining sector, combining a low-cost operational model with strong profitability fundamentals and a long-term mine life.

A Historic Milestone in Indian Gold Mining

The Jonnagiri Gold Mine stands out as a pioneering venture in India's mining landscape. Operating as a low-cost open-pit mine, the project is structured to deliver sustained profitability over an extended operational horizon. The mine's design and cost structure are positioned to support competitive economics throughout its operational life.

Key project parameters are outlined below:

Financial Projections

The Jonnagiri project carries notable financial projections that underscore its commercial significance. FY27 revenue is estimated at ₹900 Cr, reflecting the scale of production anticipated at peak operational capacity. The attributable profit after tax (PAT) to the company is projected at about ₹120 Cr for the same period.

The financial outlook for the project is summarised below:

Operational Highlights

The open-pit mining method adopted at Jonnagiri is associated with lower operational costs compared to underground mining alternatives, contributing to the project's strong profitability profile. The projected mine life of 10–15+ years provides a long runway for sustained gold output and revenue generation.

Key operational highlights of the Jonnagiri Gold Mine include:

• Mine Type: Low-cost open-pit operation
• Peak Production Target: Approximately 1 tonne of gold annually
• Profitability Profile: Strong, supported by low-cost operational structure
• Mine Longevity: Projected life of 10–15+ years

The Jonnagiri Gold Mine's establishment marks a pivotal moment for India's private mining sector, with Deccan Gold Mines positioned at the forefront of domestic gold production. The project's combination of historic significance, operational efficiency, and robust financial projections makes it a notable development in the Indian mining industry.