Deccan cements Limited announced its financial results for the quarter ended December 31, 2025, presenting a mixed performance with quarterly challenges offset by strong nine-month recovery. The cement manufacturer reported contrasting trends between its quarterly and nine-month performance, reflecting the dynamic nature of the cement industry.

Quarterly Performance Analysis

The company's Q3FY26 performance showed revenue growth but profitability challenges. Despite achieving higher sales, operational expenses and other factors contributed to a quarterly loss.

Nine-Month Performance Highlights

The nine-month period demonstrated significant improvement in the company's financial position, with substantial profit growth and improved operational efficiency.

Expense Structure and Cost Management

The company's expense profile showed varying trends across different cost categories during Q3FY26:

• Power and Fuel: ₹5,170.92 lakhs (Q3FY26) vs ₹4,389.20 lakhs (Q3FY25) • Freight Charges: ₹2,740.89 lakhs vs ₹2,024.52 lakhs year-on-year • Cost of Materials: ₹2,053.62 lakhs compared to ₹1,505.79 lakhs • Finance Costs: ₹550.41 lakhs vs ₹350.92 lakhs in the previous year

Total expenses for Q3FY26 reached ₹13,312.20 lakhs compared to ₹11,727.88 lakhs in Q3FY25, representing a significant increase that impacted quarterly profitability.

Regulatory Compliance and Corporate Governance

The financial results were reviewed by the Audit Committee and approved by the Board of Directors during their meeting held on February 12, 2026. The meeting commenced at 12:15 PM IST and concluded at 12:55 PM IST. M. Anandam & Co., Chartered Accountants, conducted a limited review of both standalone and consolidated unaudited financial results.

Impact of Labour Code Implementation

The company recognized the financial impact of new Labour Codes notified by the Government of India on November 21, 2025. These codes consolidate twenty-nine existing labour laws into a comprehensive framework. Based on management's assessment and actuarial valuation, the company considered the impact of gratuity and leave encashment liability arising from the implementation, recognizing the financial impact as an expense during the quarter.

Consolidated vs Standalone Results

The consolidated results, which include the wholly owned subsidiary Deccan Swarna Cements Private Limited, showed similar trends to the standalone performance. The consolidated net loss for Q3FY26 stood at ₹55.76 lakhs compared to a profit of ₹80.89 lakhs in Q3FY25, while nine-month consolidated profit reached ₹2,385.88 lakhs versus a loss of ₹43.22 lakhs in the corresponding previous period.

Deccan Cements has announced a major operational milestone with the commencement of its new Line-3 cement plant. The company has successfully started operations at the facility and begun commercial production, marking a significant step in its expansion strategy.

Plant Operations Commence

The new Line-3 cement plant has officially started operations and entered the commercial production phase. This development represents a key achievement for Deccan Cements as it expands its manufacturing capabilities in the cement sector.

Strategic Expansion

The commencement of the Line-3 plant operations demonstrates Deccan Cements' commitment to expanding its production infrastructure. The new facility is expected to contribute to the company's overall cement manufacturing capacity and enhance its market presence.

Industry Impact

With the new Line-3 plant now operational, Deccan Cements is positioned to increase its cement production output. The facility's commercial production phase marks the successful completion of the plant's development and commissioning process, enabling the company to serve market demand more effectively.

This expansion milestone underscores Deccan Cements' strategic growth initiatives and its aim to strengthen its position in the cement industry. The successful start of operations at the Line-3 plant is likely to have a positive impact on the company's production capabilities and market competitiveness.