Deccan Gold cuts first-half loss to Rs 30.023 crore in H1

Deccan Gold Mines Limited reported a consolidated loss after tax of Rs 30.023 crore for the half year ended September 30, 2026, compared with a Rs 48.376 crore loss a year earlier, while its share of profit from an Indian associate was Rs 20.585 crore. The associate contribution was material to the reported outcome.

How much did Deccan Gold's first-half loss narrow?

Deccan Gold's consolidated loss after tax narrowed by Rs 18.353 crore to Rs 30.023 crore for the half year ended September 30, 2026, from Rs 48.376 crore in the corresponding half year ended September 30, 2025. The board approved the unaudited standalone and consolidated results on November 13, 2026.

The consolidated loss before tax and extraordinary items was Rs 30.123 crore in the 2026 half year, against Rs 48.376 crore in the previous corresponding period. Tax expense was Rs 0.10 lakh in the latest half year, meaning the movement in the final loss largely tracked the change in the pre-tax result.

Deccan Gold said it operates in a single segment, gold exploration and mining. The September 30, 2026 filing therefore does not provide separate revenue or profit figures for individual exploration, development or mining projects that could explain the Rs 18.353 crore year-on-year reduction in consolidated loss.

What role did associate profit have in Deccan Gold's result?

Deccan Gold recognised a Rs 20.585 crore share of net profit after tax from Thriveni Lloyds Swarnagiri Private Limited for the half year ended September 30, 2026. Thriveni Lloyds Swarnagiri, formerly Geomysore Services (India) Private Limited, is an Indian associate accounted for under the equity method.

Kalevala Gold Oy, Deccan Gold's foreign associate in Finland, contributed a separate Rs 26.12 lakh share of profit for the same period. The filing identifies the Rs 20.585 crore contribution from Thriveni Lloyds Swarnagiri and the Rs 26.12 lakh contribution from Kalevala Gold Oy, making the Indian associate the substantially larger disclosed contributor.

The group retrospectively restated comparative associate-related amounts after Thriveni Lloyds Swarnagiri's audited financial statements for the year ended March 31, 2026 were approved on September 4, 2026. Those accounts contained corrections of prior-period errors under Indian Accounting Standard 8, covering pre-operative expenditure, depreciation and other expenses incorrectly capitalised in earlier periods.

The restatement reduced Deccan Gold's consolidated other equity at March 31, 2026 by Rs 12.1799 crore. It comprised a Rs 12.2042 crore reduction in retained earnings and a Rs 2.43 lakh increase in the other comprehensive income reserve; the auditor said its conclusion on the consolidated review was not modified.

Why did Deccan Gold use more operating cash despite the lower loss?

Deccan Gold used Rs 90.130 crore in operating activities during the half year ended September 30, 2026, compared with Rs 64.050 crore used in the year-earlier half. The increase in operating cash use occurred while the reported consolidated loss narrowed to Rs 30.023 crore, reflecting working-capital movements and non-cash adjustments in the cash-flow statement.

Trade receivables increased by Rs 88.613 crore in the 2026 half year, versus an increase of Rs 5.075 crore a year earlier. Other current assets increased by Rs 23.270 crore, while trade and other payables rose by Rs 25.441 crore, partly offsetting cash absorbed by receivables and other assets.

Investing activities generated net cash of Rs 166.473 crore in the six months to September 30, 2026, compared with Rs 32.777 crore in the prior-year period. Loan repayments of Rs 192.819 crore were the principal disclosed inflow, offset by purchases of fixed assets and advances of Rs 22.236 crore and additions to intangible assets under development of Rs 3.155 crore.

Financing activities used Rs 84.208 crore, against a Rs 18.458 crore inflow in the previous corresponding half. Consolidated cash and cash equivalents closed at Rs 2.656 crore on September 30, 2026, down from Rs 10.520 crore at the start of the half year and Rs 3.853 crore at September 30, 2025.

What did the auditors disclose about subsidiaries and Avelum loans?

Deccan Gold's consolidated-review auditor said that certain subsidiary interim financial information was unaudited, furnished by management and not reviewed by the auditor. The auditor's conclusion was not modified, and the filing identifies Avelum Partner LLC in Kyrgyzstan and the Dubai Group as material subsidiaries under Deccan Gold's policy.

Avelum recorded revenue of Rs 11,000 and a net loss after tax of Rs 1.18431 crore for the period ended September 30, 2026, based on management-prepared information approved under the relevant local statute. The Dubai Group, comprising Deccan Gold - FZCO and its Mozambique subsidiary, recorded revenue of Rs 29.64 lakh and a net loss after tax of Rs 1.0701 crore.

Other unreviewed management-furnished results included a Rs 15.64 lakh net loss at Deccan Exploration Services Private Limited, a Rs 1.81 lakh net loss at Novadhatu Minerals Private Limited and a Rs 4.74 lakh net loss at Deccan Gold (TZ) Private Limited for the period ended September 30, 2026. The auditor relied on management-certified information for these entities in conducting its consolidated review.

In the standalone review report, the auditor drew attention to unsecured inter-company loans of Rs 276.1054 crore to Avelum and accrued interest of Rs 41.1194 crore at 15% a year. Management stated that principal and accrued-interest repayment is expected to commence when commercial production begins at Avelum's Altyn Tor Gold Project, based on management's assessment and future business projections.

Conclusion

Deccan Gold reduced its consolidated first-half loss by Rs 18.353 crore year on year, but the filing shows the result included Rs 20.585 crore of profit share from Thriveni Lloyds Swarnagiri. At the same time, operating cash outflow increased to Rs 90.130 crore, led by a Rs 88.613 crore rise in trade receivables.

The stated event to watch next is the start of commercial production at Avelum's Altyn Tor Gold Project, because management expects repayment of Rs 276.1054 crore in inter-company loans and Rs 41.1194 crore in accrued interest to begin then. Subsequent filings may also provide updated subsidiary financial information and show the continuing effect of the associate-accounting restatement.