Company Overview

DCM Limited (Scrip Code: 502820) has announced its 136th Annual General Meeting scheduled for September 28, 2026, to be conducted via video conference. The meeting agenda includes adoption of FY25-26 financial statements, reappointment of directors Yuv Bharat Ram and Rahil Bharat Ram, and ratification of cost auditor remuneration. Special business includes reappointment of Managing Director Vinay Sharma for three years from August 2027.

Financial Performance

Consolidated Results:

  • Revenue from operations: ₹7,178.26 lakh (4% growth from previous year ₹6,904.26 lakh)
  • Profit after tax: ₹289.66 lakh (87% decline from previous year ₹2,191.67 lakh)
  • Earnings per share: ₹1.55 (previous year ₹11.73)

Standalone Performance:

  • Revenue from operations: ₹22.79 lakh (previous year ₹26.80 lakh)
  • Net loss: ₹580.24 lakh (previous year profit ₹151.63 lakh)
  • Current ratio deteriorated to 0.23 from 0.28

Material Uncertainties

Going Concern Issue: Auditors highlight material uncertainty regarding the company's ability to continue as going concern due to:

  • ₹5,000 lakh advance for Hisar land development project shown as current liability pending arbitration outcome
  • Current liabilities exceed current assets by ₹259.09 lakh (consolidated) and ₹4,161.54 lakh (standalone)
  • Development license suspended in April 2023 with termination notice issued November 2025
  • Developer has filed Section 9 petition before Delhi High Court and invoked arbitration

Engineering Division Lockout: Manufacturing unit remains under lockout since October 2019 due to labor unrest, resulting in:

  • No production activities during FY25-26
  • Unprovided wage liability of ₹7,964 lakh as of March 31, 2026
  • Matter sub-judice before labor authorities with 211 employees on rolls

Operational Segments

IT Business (DCM Infotech Limited):

  • Turnover: ₹74.09 Crores (previous year ₹70.43 Crores)
  • PBT: ₹9.92 Crores (previous year ₹10.61 Crores)
  • Focus on Agentic AI based automation solutions

Joint Venture (Purearth Infrastructure Limited - 16.56% ownership):

  • Revenue: ₹115.79 Crores (previous year ₹222.35 Crores)
  • PAT: ₹31.65 Crores (previous year ₹119.57 Crores)
  • Group's share of profit: ₹521.14 lakh
  • Dividend received: ₹256.82 lakh

Corporate Structure and Changes

Subsidiaries: DCM Landmark Estates Limited, DCM Infotech Limited, DCM Engineering Limited, DCM Infinity Realtors Limited, DCM Realty and Infrastructure Limited, and DCM Infotech Solutions Inc (USA)

Management Changes:

  • Mr. Ajay Vir Jakhar resigned as Independent Director (February 2026)
  • Maj. Gen. Shailendra Singh appointed as Additional Independent Director (May 2026)
  • Ms. Sonal Gupta appointed as Company Secretary (February 2026)

Contingent Liabilities and Risks

  • Claims not acknowledged as debts: ₹489.36 lakh (excise, sales tax, income tax matters)
  • Aggregate contingent liabilities: ₹530.42 lakh
  • Negative financial ratios with interest coverage ratio at -5.07 and return on net worth at -1.39

Corporate Governance and Compliance

  • Board met 5 times during FY25-26
  • All mandatory committees constituted (Audit, Nomination & Remuneration, Stakeholders' Relationship, CSR)
  • No dividend recommended for FY25-26
  • Minimal CSR spending due to losses
  • Shareholding pattern shows 50.10% promoter holding and 49.90% public shareholding

Management believes infusion of liquidity through real estate operations and restructuring measures will enable continuation as going concern, though significant uncertainties remain regarding arbitration outcomes and resolution of the engineering division lockout.