Deccan Cements announced a 10% dividend of Rs 0.50 per share at its 46th AGM, following a strong FY26 performance with net profits jumping nearly 280%. The company has completed its brownfield expansion, reaching a 4 MTPA capacity, and is seeking shareholder approval for CMD remuneration adjustments and minimum remuneration for the upcoming year.
Deccan Cements Reports 279.7% Profit Surge and 4 MTPA Capacity
Net Profit jumped to Rs 28.59 crore from Rs 7.53 crore in FY25; Revenue reached Rs 635.61 crore.
Reader Takeaway: Strong revenue growth and production expansion provide a solid base, though regulatory remuneration approvals remain a key focus.
What just happened
Deccan Cements held its 46th Annual General Meeting, where it declared a final dividend of 10% (Rs 0.50 per share) for FY 2025-26. The record date is set for September 22, 2026, with payouts scheduled for October 15, 2026. The board also addressed governance matters, specifically seeking shareholder ratification for CMD remuneration that exceeded statutory ceilings during a period of profit constraints.
Why this matters
The company has successfully scaled its operations with the completion of a brownfield project, now reaching an installed capacity of 4 million tons per annum. This expansion is central to the company’s revenue growth, which climbed 20.6% year-on-year. Furthermore, the company completed a major refinancing of term loans through the issuance of Rs 659.99 crore in CCDs and NCDs in June 2026, a move aimed at optimizing the company's debt profile.
What changes now
Shareholders are being asked to ratify Rs 66.17 lakh in excess remuneration for CMD Ms. P. Parvathi. Additionally, a special resolution is being proposed to authorize minimum remuneration for the next fiscal year should profit levels remain inadequate under statutory definitions. These items are procedural but significant for corporate governance transparency.
Risks to watch
Investors should closely track the eventual conversion of the Rs 659.99 crore in Compulsorily Convertible Debentures (CCDs). This conversion will result in equity dilution within the next 18 months, which could impact earnings per share for existing shareholders. Monitoring the utilization of the expanded 4 MTPA capacity to ensure it translates into sustained operational efficiency is also critical.
Context metrics
Deccan Cements reported a net profit of Rs 28.59 crore for FY 2025-26, compared to Rs 7.53 crore in FY 2024-25. The EPS rose significantly to Rs 20.41, up from Rs 5.38 in the previous year.
What to track next
The primary focus remains on the post-AGM dividend payout on October 15 and the long-term impact of the newly expanded production capacity on market share and margins in the competitive cement sector.