Interest surge deepens Deccan Cements’ quarterly loss
Operating efficiency improved sequentially, but a +68.54% rise in interest expense pushed the consolidated loss to Rs 15.21 cr.
Filed 12 Nov 2026, 13:26 IST · Deccan Cements Ltd (DECCANCE)
Key takeaways
- Consolidated net loss widened to Rs 15.21 cr from Rs 7.39 cr sequentially as interest expense jumped +68.54%.
- Operating margin improved 2.22 percentage points to 9.9% QoQ because revenue grew +1.07% while expenses fell -1.36%.
- At 9.9%, operating margin was 2.5 percentage points below the median for 149 reported Commodities peers.
Price around the results
Operating recovery could not offset higher finance costs
Consolidated revenue grew +1.07% QoQ to Rs 221.68 cr, while expenses declined -1.36% to Rs 199.74 cr. That combination lifted operating profit by +30.21% and expanded operating margin by 2.22 percentage points. The improvement was overtaken below the operating line as interest expense rose to Rs 26.41 cr from Rs 15.67 cr.
Lower tax rate softened, but did not prevent, the loss
Profit before tax worsened to a loss of Rs 16.45 cr from Rs 9.50 cr, despite the operating improvement, because interest costs increased +68.54%. The tax rate fell 14.66 percentage points to 7.54%, and the tax benefit limited the reported net loss to Rs 15.21 cr. Other income fell -26.03% QoQ to Rs 3.58 cr and did not provide a meaningful offset.
Margin improved sequentially but stayed below the peer median
Operating margin recovered from 7.68% in Q1FY27 to 9.9% in Q2FY27, marking a sequential improvement rather than another decline. It remained 2.5 percentage points below the 12.4% median for the 149 Commodities peers that had reported the quarter.
Shares recorded a negative day-zero reaction
The recorded day-zero share reaction was -1.78%, including a -0.96% opening gap. Trading volume was 4.32 times the reference level.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹222 cr | ₹219 cr | +1.07% |
| Other income | ₹4 cr | ₹5 cr | -26.03% |
| Expenses | ₹200 cr | ₹202 cr | -1.36% |
| Operating profit | ₹22 cr | ₹17 cr | +30.21% |
| Operating margin (%) | 9.90% | 7.68% | — |
| Interest | ₹26 cr | ₹16 cr | +68.54% |
| Depreciation | ₹16 cr | ₹16 cr | +0.26% |
| Profit before tax | ₹-16 cr | ₹-10 cr | -73.16% |
| Tax | ₹-1 cr | ₹-2 cr | +41.23% |
| Net profit | ₹-15 cr | ₹-7 cr | -105.82% |
| EPS (₹) | ₹-10.11 | ₹-5.24 | -92.94% |
Operating margin of 9.90% compares with a Commodities sector median of 12.40% across 149 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.78% | -1.96% |
Volume on the results session was 4.32× its 20-day average.
What to watch
- Whether operating margin holds above 9.9% after the sequential improvement from 7.68%.
- Whether interest expense falls from Rs 26.41 cr after its +68.54% QoQ increase.
- Whether the consolidated net loss narrows from Rs 15.21 cr.