Disclosure Context

DCW Limited submitted a regulatory filing to the National Stock Exchange of India Ltd. (Scrip Code: DCW) and BSE Limited (Scrip Code: 500117) on October 29, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure covers the outcomes of the Board meeting held on October 29, 2026, which commenced at 12:00 Noon and concluded at 4:00 P.M.

Financial Results Approval

The Board of Directors approved the Un-audited Financial Statements of the Company for the second quarter and half year ended September 30, 2026. The financial results were reviewed by the Audit Committee and include a Limited Review Report issued by M/s. V. Sankar Aiyar & Co., Statutory Auditors of the Company.

Quarterly Financial Performance (₹ in lakhs)

Quarter Ended September 30, 2026:

  • Revenue from Operations: ₹66,285.81
  • Other Income: ₹711.83
  • Total Income: ₹66,997.64
  • Total Expenses: ₹65,595.42
  • Profit Before Tax: ₹1,402.22
  • Tax Expense: ₹366.25
  • Net Profit for the Quarter: ₹1,035.97
  • Basic EPS: ₹0.35
  • Diluted EPS: ₹0.35

Half Year Ended September 30, 2026:

  • Revenue from Operations: ₹1,20,476.78
  • Other Income: ₹1,276.85
  • Total Income: ₹1,21,753.63
  • Total Expenses: ₹1,20,315.72
  • Profit Before Tax: ₹1,437.91
  • Tax Expense: ₹(3,052.69) [includes deferred tax adjustment of ₹(3,427.92)]
  • Net Profit for Half Year: ₹4,490.60
  • Basic EPS: ₹1.52
  • Diluted EPS: ₹1.52

Segment-wise Performance (Half Year Ended September 30, 2026)

Revenue:

  • Basic Chemicals: ₹83,391.47
  • Speciality Chemicals: ₹36,137.45
  • Others: ₹947.86

Segment Results (Profit before Interest, Tax & Exceptional Items):

  • Basic Chemicals: ₹(2,219.01)
  • Speciality Chemicals: ₹5,934.05
  • Others: ₹562.70

Financial Position as of September 30, 2026 (₹ in lakhs)

Assets:

  • Total Assets: ₹2,21,194.44
  • Non-Current Assets: ₹1,35,462.16
  • Current Assets: ₹85,732.28

Equity and Liabilities:

  • Total Equity: ₹1,11,971.75
  • Equity Share Capital: ₹5,903.10 (Face value ₹2 each)
  • Other Equity: ₹1,06,068.65
  • Non-Current Liabilities: ₹35,987.88
  • Current Liabilities: ₹73,234.81

Equity Share Buyback Approval

The Board approved a buyback of fully paid-up equity shares having a face value of ₹2 each through the open market route, using the stock exchange mechanism.

Buyback Details:

  • Maximum Buyback Price: ₹58 per equity share
  • Maximum Buyback Size: ₹40,00,00,000 (₹40 Crore)
  • Maximum Buyback Shares: 68,96,551 equity shares (4.53% of total paid-up equity share capital and free reserves)
  • Minimum Buyback Size: ₹30,00,00,000 (₹30 Crore, representing 75% of maximum size)
  • Minimum Buyback Shares: 51,72,413 equity shares (at maximum price)

Exclusions: Promoters, members of Promoters Group, and persons in control of the Company cannot participate in the buyback as per SEBI Buyback Regulations.

Capital Structure Impact:

  • Pre-buyback share capital: 29,51,55,017 shares
  • Promoter & Promoter Group: 13,45,61,399 shares (45.59%)
  • Public: 16,05,93,618 shares (54.41%)
  • Post-buyback shareholding pattern (assuming maximum buyback):
  • Promoter & Promoter Group: 13,45,61,399 shares (46.68%)
  • Public: 15,36,97,067 shares (53.32%)
  • Total shares: 28,82,58,466 shares

Governance: The Board constituted a Buyback Committee and delegated powers to implement the buyback.

Legal and Contingent Matters

The Limited Review Report highlights several material contingent liabilities:

1. Electricity Tax Demand: ₹5,491.45 lakhs for captive power generated at Sahupuram unit (2003-2022). Company is challenging validity and retrospective application of Amending Act of 2003 before Supreme Court and Madras High Court.

2. Customs Duty Demand: ₹1,243.77 lakhs plus interest, and redemption fine and penalty of ₹2,600 lakhs for coal imports in earlier years. Company believes it has fair chance of success before CESTAT.

3. Land Lease Matter: Re-possession notice by State Government for land at Sahupuram works. Madras High Court set aside government order and remanded for fresh consideration. Interim stay granted until disposal of writ appeal.

4. Income Tax Matters:

  • Demand of ₹106.08 lakhs raised by income tax authorities
  • Reduction of MAT credit available by ₹2,893.15 lakhs for AY 2015-16 to AY 2024-25
  • Penalty notices issued
  • Company has filed appeals against these orders

Accounting Treatment: No provision has been made for these demands as management believes they are not tenable in law.

Tax Regime Transition

The company has transitioned to the new concessional tax regime under Income Tax Act 2025 effective April 1, 2026. This resulted in re-measurement of deferred tax liabilities and assets, recognizing a net gain of ₹3,427.92 lakhs in the Statement of Profit and Loss.

Other Business Updates

  • The company holds 28.96% investment in Kaze Renewables Private Limited but does not exercise significant influence, therefore not considered an associate under Ind AS 28
  • The financial results are prepared in accordance with Ind AS and comply with SEBI Listing Regulations