Divyashakti Granites announced a temporary reduction in production levels effective September 29, 2026. The decision stems from a sharp rise in raw material costs and a substantial increase in US import tariffs that have eroded export competitiveness.

The company cited an overall effective duty burden of approximately 41% on Indian-origin products entering the United States. This includes additional tariffs of 12.5% and 25%, along with a countervailing duty (CVD) of approximately 4%. These measures, implemented from September 1, 2026, have significantly increased the landed cost of exports, placing pressure on selling prices and margins.

Input cost escalation

Geopolitical tensions have driven crude oil prices from approximately $45 per barrel to $108 per barrel. This surge has directly impacted the cost of petroleum-based raw materials. Resin, a key input for the company, saw its price rise from approximately ₹100 per kg to ₹172 per kg, marking an increase of approximately 72%.

Logistics costs have also escalated sharply. Ocean freight rates increased from approximately $1,300 per container to as high as $9,000 per container. This has made exports considerably more expensive and contributed to delays in dispatches.

Cost structure impact

The following table details the specific cost drivers disclosed by the company:

Note: Percentage changes are derived from the absolute figures provided in the source.

What the numbers show

The data reveals a severe margin compression scenario driven by simultaneous shocks in both demand-side pricing power and supply-side costs. While the company attempted to absorb some cost increases, the combination of a 72% rise in resin prices and a 41% effective tariff barrier creates a structural gap that is difficult to bridge through operational efficiency alone. The inability to pass on full costs to customers, explicitly stated by the management, indicates that the price elasticity of demand in the US market is insufficient to offset these external headwinds, necessitating the production cut to align output with viable demand levels.

Divyashakti Limited shareholders approved a 10% dividend on equity shares for the financial year ended March 31, 2026. The decision was taken during the company's 35th Annual General Meeting (AGM), held virtually on September 28, 2026.

The meeting, conducted through Video Conferencing (VC) and Other Audio-Visual Means (OAVM) with the registered office in Hyderabad as the deemed venue, saw attendance from 76 members. The proceedings were chaired by Managing Director N. Hari Hara Prasad, with Company Secretary Nilima Kumari managing the e-voting procedures and quorum verification.

Key resolutions passed

The Board's recommendations were adopted through ordinary resolutions, covering financial adoption, dividend declaration, director reappointment, and related party transactions. The Statutory Auditor's Report and Secretarial Audit Report contained no qualifications or adverse remarks requiring detailed reading at the meeting.

Scrutinizer report and voting details

On September 29, 2026, Divyashakti submitted the Consolidated Scrutinizer's Report prepared by Corporate Advocate Puttaparthi Jagannatham. The report confirmed that all four ordinary resolutions were passed with the requisite majority.

For Resolutions 1 (Adoption of Financial Statements), 2 (Dividend), and 3 (Director Reappointment), the voting pattern was nearly identical. Approximately 78,02,039 votes were cast in favor against just 467 votes against, resulting in a support rate of 99.9940%.

Resolution 4, concerning material related party transactions, involved a different voting dynamic due to regulatory exclusions. Under Regulation 23(4) of SEBI Listing Regulations, votes cast by shareholders identified as related parties were excluded from consideration. After excluding these votes, the total valid votes considered stood at 4,60,758. Of these, 4,60,290 voted in favor (99.8984%) and 468 voted against.

Governance and attendance

The AGM was attended by key management personnel, including Director Nallapati Sai Venkateshwara Prasad, Woman Director and CFO Mrs. Anuradha Anne, and Independent Directors Jasti Karunendra Srinivasa, Musunuri Ramakrishna Prasad, and Mohan Krishna Pamidimukkala. The statutory auditor, Achuta Ramaiah Pavuluri, and secretarial auditor, Navajyoth Puttaparthi, were also present.

Remote e-voting was facilitated through NSDL from September 24, 2026, to September 27, 2026. Members who did not vote remotely had the option to vote during the live virtual session. The scrutinizer verified that votes from remote e-voting and live AGM e-voting were consolidated without duplication.