Desco Infratech Limited has issued a revised outcome of its board meeting held on September 5, 2026, to rectify a typographical error regarding a proposed borrowing limit.

The company clarified that the aggregate amount for loans, guarantees, or securities under Section 185 of the Companies Act, 2013, was approved at ₹30 crore, not ₹50 crore as inadvertently stated in the initial filing. The revision does not alter the substance of the board's decisions.

Governance and Director Changes

The board recommended the re-appointment of Mr. Pankaj Pruthu Desai as Managing Director, who retires by rotation. Additionally, the board proposed the regularization of Mr. Shailesh Kalidas Naik as an Independent Director for a five-year term effective July 1, 2026. Mr. Naik brings over a decade of experience in urban infrastructure and utility management, including a tenure as Director (Commercial) at Vadodara Gas Limited.

Remuneration revisions were also proposed for Mr. Malhar Pankaj Desai, Whole-Time Director, and Mr. Samarth Pankaj Desai, Director. A commission payment proposal for Managing Director Mr. Pankaj Pruthu Desai was put forward for shareholder approval.

Increased Borrowing and Investment Limits

The board sought special resolution approvals from members to enhance financial flexibility:

• Increase borrowing powers under Section 180(1)(c) of the Companies Act, 2013, from ₹50 crore to ₹150 crore.
• Raise the limit for selling or leasing undertakings under Section 180(1)(a) from ₹50 crore to ₹150 crore.
• Approve loans, guarantees, or securities under Section 185 up to an aggregate of ₹30 crore. This includes loans to subsidiaries Shri Green Agro Energies Private Limited (₹10 crore), Desco Bio Green Private Limited (₹10 crore), and Desco Global FZ-LLC (₹10 crore).
• Increase limits for investments, loans, guarantees, or securities under Section 186 from ₹50 crore to ₹60 crore.

Related-Party Transactions

The board approved two material related-party transactions exceeding the SEBI LODR Regulation 23 threshold, subject to shareholder approval:

These transactions require inclusion in the AGM notice for member approval as they exceed the prescribed materiality thresholds. Mr. Pankaj Pruthu Desai, Mr. Malhar Pankaj Desai, and Mr. Samarth Pankaj Desai are interested in these resolutions.

Remuneration Revisions

The board proposed specific remuneration changes effective October 1, 2026:

Additionally, the commission payable to Managing Director Mr. Pankaj Pruthu Desai is proposed to increase from 0.3% to 1% of the total turnover. This revision reflects the company's growth in turnover from ₹29.39 crore in FY24 to ₹118.61 crore in FY26.

Desco Infratech reported a near-doubling of revenue and an 80% surge in net profit for the financial year ended March 31, 2026, reflecting strong execution across its infrastructure portfolio.

The Surat-based engineering, procurement, and construction (EPC) firm posted revenue from operations of ₹11,861.26 lakh for FY26, up 99.53% from ₹5,944.71 lakh in the previous year. Profit after tax (PAT) rose 80.48% to ₹1,634.67 lakh, compared to ₹905.71 lakh in FY25.

Financial Performance

The company's EBITDA grew 76.40% year-on-year to ₹2,354.11 lakh from ₹1,334.51 lakh. The consolidated earnings per share (EPS) stood at ₹21.30 on a face value of ₹10 per share.

Segment Contribution

City Gas Distribution (CGD) remained the primary growth driver, contributing approximately 70% of total revenue. The CGD segment generated ₹8,324.04 lakh in revenue with a PAT margin of 15.42%. The Power and Renewable EPC segment contributed ₹3,537.22 lakh in revenue, delivering a PAT margin of 10.01%.

What the Numbers Show

Revenue growth significantly outpaced EBITDA expansion, with top-line figures rising nearly 100% while operating profits grew by roughly 76%. This divergence suggests a compression in overall operating margins as the company scaled operations rapidly. Additionally, trade receivables increased sharply to ₹3,042.86 lakh from ₹1,335.33 lakh, indicating that cash conversion may lag behind revenue recognition during this period of accelerated execution.

Strategic Developments

Desco Infratech strengthened its order book, which now exceeds ₹370 crore. The company expanded its geographic footprint across 14 states and established its first international subsidiary, Desco Global FZ-LLC, in the United Arab Emirates. It also entered into a memorandum of understanding to explore hydrogen-natural gas blending projects in the CGD sector.

Dividend and Governance

The Board of Directors did not recommend any dividend for FY26, citing the company's growth phase and need to fund expansion projects and working capital requirements. Mr. Pankaj Pruthu Desai, Managing Director, retires by rotation at the upcoming Annual General Meeting and offers himself for reappointment.