Key Metrics of Deccan Cements Limited
About Deccan Cements Limited
Sectors
Company details
- Website
- deccancements.com
- Registered office
- 6-3-666/b,, Deccan Chambers,somajiguda,, Hyderabad, In-ts, 500082
- Listed
- NSE: DECCANCE · ₹470.35
Operational Areas of Deccan Cements Limited
Company summary
Entity details
Compliance
Industry classification
Financials, ratios and risk analysis
Revenue, EBITDA, net profit, net worth, debt and assets for every filing year, 15+ ratios, the financial health score, shareholding, charges and peer comparison are part of the premium plan.
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Due dates follow the Companies Act: AGM within six months of the year end, AOC-4 within 30 days and MGT-7 within 60 days of the AGM. A filing made but not yet uploaded here shows as pending.
Vendor checks & payment capacity
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Credit ratings
WatchDowngraded by CARE on 07 Aug 2026 (from BBB+)
Rating history
Rating actions
| Date | Agency | Action | Long term | Short term | Outlook | Rated amount | Rationale |
|---|---|---|---|---|---|---|---|
| 07 Aug 2026 | CARE | Downgraded (from BBB+) | BBB | A3+ | Stable | ₹300 Cr | View |
| 01 Sep 2025 | CARE | Assigned | BBB+ | A3+ | Stable | ₹300 Cr | View |
Credit strengths (CARE, Aug 2026)
+ Established track record of operations in the Southern market
Incorporated in July 1979, DCL has a long-standing presence in the Southern market with over four decades of operational history. The company benefits from access to captive limestone reserves and captive power generation, supporting healthy operating efficiency. DCL commenced operations in 1982 with a 200 TPD plant at Bhavanipuram, Telangana, becoming the first mini cement plant in India to adopt rotary kiln technology. Following the demise of its founder and Chairman, M.B. Raju, in June 2023,
+ Integrated nature of operations
DCL has a well-established distribution network of over 1,800 dealers and consignment agents across Andhra Pradesh, Telangana, and other southern and neighbouring states, with a strong presence in rural markets.The company has built a diversified captive power portfolio comprising a 15 MW coal-based captive thermal power plant, a 3.75 MW hydroelectric project, a 2.025 MW wind farm, and a 14 MW WHRS. These facilities together provide an installed capacity of ~34MW (of which ~18 MW is captively us
+ Moderate operational risk profile
The company’s operational performance remains moderate in FY26 and FY25, owing to state elections in FY25 and competitive nature of the industry. Income from operations increased to ₹634.64 crore in FY26 from ₹525.40 crore in FY25, owing to higher volumes sold with commissioning of 1.8 MTPA capacity in December 2025, although still remains lower than the ₹798.40 crore of income reported in FY24. Sales volumes improved by ~16.7% to 1.62 MT in FY26 from 1.39 MT in FY25, though remaining below
Credit challenges
− Elevated leverage and subdued debt coverage metrics
The company’s financial risk profile remains leveraged, primarily considering the debt-funded nature of its expansion project and the concurrent moderate profitability. The debt as on March 31, 2026, stands at ₹752.6 crore (₹714.15 crore as on March 31, 2025), which mainly comprises of term loans of ₹655 crore taken for setup of Line 3 at Bhavanipuram, which increased the cement capacity to 4.0 MTPA and clinker capacity to 3.0 MTPA. The overall gearing stands at 1.03x as on March 31, 2026 (PY:
− Exposure to volatile input costs and price realisations
The company is exposed to commodity price risk, arising from raw material price fluctuation (gypsum, fly ash, and slag) and fuel (coal and pet coke). Coal (indigenous and international) is used for power generation to run its plants and fuel for kilns. In the recent past, the cement industry witnessed significant spike in power and fuel costs; post pent-up demand for fuel after multiple COVID-19 waves. Russia-Ukraine war exacerbated fuel cost in FY22 and FY23. Spike in fuel costs impacted profit
Could lead to an upgrade
• Improvement in the operational risk profile led by enhanced capacities with realisations over ₹4200/MT and operating margins over 15% on a sustained basis. • Improvement in capital structure leading to a decline to net debt/PBILDT below 5.0x on a sustained basis. 1SEBI: Securities and Exchange Board of India; RBI: Reserve Bank of India; MCA: Ministry of Corporate Affairs; IRDAI: Insurance Regulatory and Development Authority of India; PFRDA: Pension Fund Regulatory and Development Authority. 2Complete definitions of ratings assigned are available at www.careratings.com and in other CARE Rati
Could lead to a downgrade
• Lower-than-envisaged profitability margins below 11% impacting cash accruals, weakening of
Agency-reported financials (CARE, 07 Aug 2026)
| Metric | March 31, 2025 | March 31, 2026 |
|---|---|---|
| Total operating income | ₹527 Cr | ₹636 Cr |
| PBILDT* | ₹35.48 Cr | ₹76.99 Cr |
| Profit after tax (PAT) | ₹7.53 Cr | ₹28.59 Cr |
| Overall gearing (x) | 1.02× | 1.03× |
| Interest coverage (x) | 2.76× | 2.82× |
| Revenue growth (YoY) | — | 20.6% |
| PAT margin | 1.4% | 4.5% |
Borrowings & rated debt
Rated limits over time
Facility mix
Rated facilities
| Facility | Type | Previous | Current | Change | Rating | Action | Agency |
|---|---|---|---|---|---|---|---|
| Long-term bank facilities | Working capital & bank lines | — | ₹169 Cr | — | BBB | Downgraded | CARE |
| Short-term bank facilities | Working capital & bank lines | — | ₹131 Cr | — | A3+ | Reaffirmed | CARE |
CARE ratings on record (checked 23 Oct 2026)
| Instrument | Amount | Rating |
|---|---|---|
| BG/LC | ₹131 Cr | CARE A3+ |
| Cash Credit | ₹133 Cr | CARE BBB; Stable |
| Long Term | ₹36.0 Cr | CARE BBB; Stable |
Lenders
| Fund-based - LT | Cash Credit | Axis Bank Ltd. |
| Fund-based - LT | Cash Credit | Bank of Bahrain and Kuwait B.S.C |
| Fund-based - LT | Cash Credit | Canara Bank |
| Fund-based - LT | Cash Credit | HDFC Bank Ltd. |
| Fund-based - LT | Cash Credit | IDBI Bank Ltd. |
| Fund-based - LT | Cash Credit | IndusInd Bank Ltd. |
| Fund-based - LT | Cash Credit | State Bank of India |
| Non-fund-based - ST | BG/LC | Canara Bank |
| Non-fund-based - ST | BG/LC | IDBI Bank Ltd. |
| Non-fund-based - ST | BG/LC | IndusInd Bank Ltd. |
| Non-fund-based - ST | BG/LC | State Bank of India |
| Term Loan | Long Term | Proposed |
Credit assessment · Cement
CARE Ratings’ Criteria for Rating Cement Companies (Sep 2024) · Standalone accounts · FY 2025-26
Ratios, pillar scores and the indicative rating are part of Premium.
Rating status
| Default | No default on record |
| Issuer cooperation | Cooperating |
| Credit enhancement | None – standalone rating |
| Next action stable or better (model) | 84% |
| Information on file | 78% · missing: Capex / investment plans, Auditor details |
Indicative assessment from public data using the published methodology factors; not a credit rating.
Borrowing & funding lifecycle
- Credit outlook model: 57% chance the next rating action is stable or better
- Current rating BBB (investment grade)
- Interest coverage 2.82×
- Working-capital limits 85% utilised on average
Rated limits by facility
Timeline
From the report
Proceeds are primarily intended for refinancing the term debt availed for the capex programme, improving the company's financial flexibility with minimal debt repayment obligations in next two years.
From the report
Liquidity: Adequate DCL’s adequate liquidity is marked by free cash and bank balance of ₹89.7 crore (PY: 144.35 crore).
From the report
Average working capital utilisation stood moderate at ~85% for 12 month ended June 2026.
From the report
Liquidity: Adequate The company’s liquidity profile is adequate, supported by a cash and bank balance of ₹144.35 crore as on March 31, 2025, (PY: ₹230.62 crore), of which ₹85 crore was lien-marked against bank guarantees, expected to be released by September 2025.
From the report
Average working capital limit utilisation stood at 89% for 12 months ending June 2025.
Lender names, bank charges and audited borrowings are part of Premium.
Built from MCA charges, ICRA/CARE rating reports and audited accounts. The borrowing view is an estimate, not a lender's credit decision.
Registered office and contact
Directors and key people
Directors are read from the MGT-7 annual return and AOC-4 signatories.
Competitors of Deccan Cements Limited
Top competitors by location
| Company | Description | Domain | Founded | Location |
|---|---|---|---|---|
| Cement · Cement, Building Materials & Polymers | ultratechcement.com | 1983 | Mumbai, India | |
| Cement · Cement, Building Materials & Polymers | ambujacement.com | — | Ahmedabad, India | |
| Cement · Cement, Building Materials & Polymers | acclimited.com | — | Gandhinagar, India | |
 Shree Cement |
Cement · Cement, Building Materials & Polymers | shreecement.com | — | Beawar, India |
| Cement · Cement, Building Materials & Polymers | dalmiacement.com | — | Tiruchirapalli, India | |
| Cement · Cement, Building Materials & Polymers | jkcement.com | — | Rajasthan, India | |
 Nuvoco Vistas |
Cement · Cement, Building Materials & Polymers | nuvoco.com | — | Mumbai, India |
| Discovered Companies · Other Industries | birlacorporation.com | — | Kolkata, West Bengal, India | |
 The Ramco Cements |
Cement · Cement, Building Materials & Polymers | ramcocements.in | — | Rajapalayam, India |
| Tiles & Ceramics · Cement, Building Materials & Polymers | prismjohnson.in | — | Hyderabad, India |
Similar companies
Charges (secured borrowings)
0 registered charges. Lenders, amounts and dates are part of the premium plan.
Statutory auditors
Auditors are read from the AOC-4 auditor's report section.
Business activities and related parties
Cement
Filings
No filings on record yet.