Deccan Gold Mines Limited — Q4 FY26 earnings call

Call held 19 May 2026

Management summary

Deccan Gold Mines reported a pivotal Q4 FY26, becoming debt-free with a ₹315 crore rights issue and initiating revenue from its Jonnagiri gold project. The company announced a significant Nickel-Copper-PGE discovery in Bhalukona and is on track for commercial gold production in Kyrgyzstan by August 2026. Despite past project delays and substantial future funding requirements for its diverse mineral portfolio, management expressed confidence in its strategic progress and ability to secure capital for upcoming projects.

Highlights

  • Successfully raised ₹315 crores through a rights issue, enabling the company to become debt-free by the end of March 2026.

  • Jonnagiri Gold project, an associate company, started generating revenue and achieved profitability from trial gold production, with 26% attributable to Deccan Gold Mines.

  • Discovered economic grade Nickel-Copper-PGE mineralization in the Bhalukona project, with initial drill holes showing significant widths and grades (e.g., 2.6 meters at 1.01% nickel, 0.29% copper, 0.2 g/t palladium).

  • Kyrgyzstan gold project is nearing full-scale commercial production, with Merrill-Crowe system commissioning in June 2026 and full leaching circuit by end of July 2026, targeting August 2026 for full production.

  • Advanced the Spain Tungsten project with initial drilling confirming tungsten mineralization and plans to launch mining lease application by October/November 2026.

Concerns

  • Project delays were experienced in both Jonnagiri (environmental approvals) and Kyrgyzstan (money transfer, harsh weather conditions impacting civil construction).

  • A funding gap of ₹60-100 crores is required to complete the Kyrgyzstan project, with larger future capex needs of ₹400-500 crores for Bhalukona and Spain projects.

  • Uncertainty regarding dividend flow from Geomysore in FY27 as profits are likely to be reinvested for project expansion.

  • The Ganajur gold project remains under litigation, with no clear timeline for resolution despite ongoing efforts with state and central governments.

What they filed

Q1 FY27: revenue up 57.9%, net profit up 69.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue4 1 0 0 3 −16%1 +32%9 +1885%1 +58%
EBITDA-21 -22 -21 -24 -9 +56%-10 +55%-1 +94%-12 +52%
Net profit-68 -25 12 -28 -20 +71%-22 +10%6 −52%-9 +69%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Capex ₹32 Cr
    • Investment into Kyrgyzstan project ₹32 Cr
    Then we have invested Rs.32 Crores out of that 315 into the Kyrgyzstan project
  • Debt Gross ₹219 Cr · Net ₹0 Cr
    • Repayment Repaid all outstanding debts ₹219 Cr
    We repaid all the debt that is about Rs.219 crores... and we became a debt-free Company in that quarter
  • M&A Spain Tungsten project Acquisition · Signed · Consideration ₹[object Object] (cash)

    To acquire a higher stake in a promising tungsten project

    Acquiring 51% stake by spending €1.76 million, with rights to go up to 95%

    This is initially the objective is to get a 51% stake by spending €1.76 million and then this investment could be done either through our Dubai subsidiary or directly from India itself then it becomes direct subsidiary of the Indian entity.
  • Liquidity Liquidity disclosed Raised ₹315 crores through rights issue, with ₹60-100 crores required for Kyrgyzstan completion and additional working capital for 2-3 months.
    one of the most important things was we raised 315 Crores through the rights issue... So we require up to Rs.100 Crores at least minimum Rs.60 Crores we require to complete that Kyrgyz project... And in case if there are any contingencies, any emergencies, we have also next two to three months of working capital.

Guidance & targets

Production Volume

  • Jonnagiri Gold Production Production Volume · FY27 · High confidence 600 kg
    the production forecast is around 600kg in 2026 - 2027

    — Hanuma Prasad, Managing Director

  • Jonnagiri Gold Production Production Volume · FY28 · Medium confidence 800 kg to 1 ton
    beyond that in FY2028 it could be 800, if everything goes well, it could be a ton as well

    — Hanuma Prasad, Managing Director

  • Kyrgyzstan Gold Production Production Volume · FY27 · High confidence 160 kg
    The production forecast for FY2027, we have taken a conservative estimate of about 160kg.

    — Hanuma Prasad, Managing Director

  • Kyrgyzstan Gold Production Production Volume · FY28 · High confidence 300 to 350 kg
    FY2028, we will get to 300 to 350kg.

    — Hanuma Prasad, Managing Director

Revenue

  • Jonnagiri Revenue Revenue · FY27 · High confidence ₹900 Crores
    the revenue in FY2027 based on the current prices it could be around Rs.900 Crores

    — Hanuma Prasad, Managing Director

  • Kyrgyzstan Revenue Revenue · FY27 · High confidence ₹300 Crores
    In FY2027 based on the current prices we could get to Rs.300 Crores of revenue

    — Hanuma Prasad, Managing Director

Profitability

  • Jonnagiri EBITDA Margin Profitability · FY27 · High confidence 75%
    at an EBITDA of 75% that is what we are going to clock.

    — Hanuma Prasad, Managing Director

  • Jonnagiri PAT attributable to Deccan Profitability · FY27 · High confidence ₹120 Crores
    the PAT of around Rs.470 Crores and 26% of that is attributable to the Deccan, which is equivalent to around Rs. 120 Crores.

    — Hanuma Prasad, Managing Director

  • Kyrgyzstan PAT attributable to Deccan Profitability · FY27 · High confidence ₹60 Crores
    the PAT which is roughly around Rs.100 Crores and attributable to PAT to Deccan would be Rs.60 Crores

    — Hanuma Prasad, Managing Director

  • Kyrgyzstan PAT Margin Profitability · peak stage · High confidence 45%
    the PAT would be around 45% at the peak stage.

    — Hanuma Prasad, Managing Director

  • Kyrgyzstan PAT Margin Profitability · FY27 · High confidence 30%
    now it is around in this FY2027 it is roughly around 30%

    — Hanuma Prasad, Managing Director

  • Kyrgyzstan PAT Margin Profitability · going forward · High confidence 40-45%
    going forward it will be between 40% and 45%.

    — Hanuma Prasad, Managing Director

Resource Target

  • Jonnagiri Gold Resource Resource Target · next year or so · Medium confidence 32 tons (1 million ounces)
    target to achieve million ounces that is about 32 tons in the next year or so

    — Hanuma Prasad, Managing Director

  • Bhalukona Nickel Equivalent Resource Resource Target · future · Medium confidence 70,000 to 80,000 tonnes
    we would be looking at anywhere around 70,000 to 80,000 tonnes of nickel as a resource.

    — Hanuma Prasad, Managing Director

Mining Lease Application

  • Bhalukona Mining Lease Application Mining Lease Application · by next October (FY27) · High confidence Submitted
    we have to apply the mining lease by next year. So, by next October we have to do it.

    — Hanuma Prasad, Managing Director

  • Spain Tungsten Mining Lease Application Mining Lease Application · by end of October or November (FY27) · High confidence Submitted
    We have to launch the mining lease application by October or November this year.

    — Hanuma Prasad, Managing Director

Capex

  • Bhalukona Processing Plant Capex Capex · future · Medium confidence ₹400-500 Crores
    we would require anywhere around Rs.400 Crores to Rs.500 Crores to set up the processing plant

    — Hanuma Prasad, Managing Director

  • Spain Tungsten Project Capex Capex · future · Medium confidence ₹500 Crores
    If it is Rs.400 Crores in Bhalukona, it could be Rs.500 Crores there in Spain.

    — Hanuma Prasad, Managing Director

Strategic Vision

  • Operating Gold Mines Strategic Vision · by 2030 · Medium confidence 2-3
    at least we have two to three gold mines operating, probably a couple of critical minerals operating by 2030.

    — Hanuma Prasad, Managing Director

  • Operating Critical Mineral Mines Strategic Vision · by 2030 · Medium confidence Couple

    — Hanuma Prasad, Managing Director

Funding Requirement

  • Total Funding for Future Projects Funding Requirement · next year or so · Medium confidence ₹800-1000 Crores ($100 million)
    And the larger funding going ahead, as I said, even two projects, even if two projects have to set up by in the next year or so, we are looking at around, conservatively, around Rs.800 Crores. Rs.800 to Rs.1000 Crores that could be like $100 million.

    — Hanuma Prasad, Managing Director

What to watch in Q1 FY27

Kyrgyzstan Merrill-Crowe System Commissioning

June 2026
Current In progress
Target Commissioned

Why it matters

Crucial step towards producing Doré bars and achieving commercial production at the Kyrgyzstan gold mine.

we are going to commission the Merrill-Crowe system in the month of June.

Risks & concerns

  • Funding Requirements for Future Projects

    high

    An immediate funding gap of ₹60-100 crores exists for Kyrgyzstan completion, with future capex of ₹400-500 crores for Bhalukona and ₹500 crores for Spain Tungsten, requiring further capital raises.

    Management acknowledged

  • Project Delays (Jonnagiri & Kyrgyzstan)

    medium

    Jonnagiri faced delays due to additional environmental clearances, while Kyrgyzstan experienced delays due to money transfer issues and harsh winter conditions impacting civil construction.

    Management acknowledged

  • Ganajur Gold Project Litigation

    medium

    The Ganajur project remains under litigation, with the company actively engaging with state and central governments to find a resolution, but no clear timeline for mine development.

    Management acknowledged

  • Dividend Uncertainty from Geomysore

    low

    No dividends are expected from Geomysore in FY27 as profits will likely be reinvested for project expansion, impacting immediate cash flow to Deccan Gold Mines.

    Management acknowledged

  • Gold Price Volatility

    low

    The company does not have a clear hedging policy for gold prices, relying on conservative price assumptions (₹15,000/gram in India, $4,000/ounce in Kyrgyzstan) in its projections to mitigate risk.

    Analyst downplayed

Q&A highlights

4 direct
Hedging policy for gold price volatility Partial
as of today all the estimates that we are making like in terms of Kyrgyzstan and in terms of Jonnagiri that is why these are the few examples I can take. We have been using for all our calculations like a figures like Rs.15,000 per gram. So that is at a discount with the market price as on today... Other than that, there is no clear hedging or risk management policy in terms of gold price if it falls down

Analyst inquired about risk management for gold price fluctuations, and management confirmed no clear hedging policy, relying on conservative price assumptions in projections.

Asked by Aditya Bhutra, Avora Advisors

Government taxes and royalties on gold mining Direct
in India, because the Jonnagiri mine is one of the oldest... We pay 4% royalty to the Government of Andhra Pradesh and another 1.28% which is split between state and centre... in total it comes to around 5.28% that is what we pay to the government here that goes from the top line. Similarly, in Kyrgyzstan, we pay royalty of 5% to the government.

Clarified the specific royalty and tax rates for both Indian (Jonnagiri) and Kyrgyzstan operations, crucial for understanding profitability.

Asked by Raman KV, Sequent Investments

Potential revenue generation and timelines for Bhalukona and Spain Tungsten projects Partial
Bhalukona, again these are the very, very indicative numbers which could significantly change with the drilling etc. What it would be if everything as we think if it happens then we would be looking at anywhere around 70,000 to 80,000 tonnes of nickel as a resource... Tungsten, I think it is a bit too early for me to watch over the numbers.

Analyst sought revenue projections for future critical mineral projects, but management indicated it's too early for specific numbers, providing only resource estimates for Bhalukona, highlighting the early stage of these projects.

Asked by Viraj Mahadevia, MoneyGrow

Funding for Kyrgyzstan project completion and future capex for Bhalukona Direct
Rs.100 Crores is the completely outer limit that we are taking in case of any emergencies, but the actual requirement is around Rs.60 Crores. So that is what is going to be spent in the next two to three years... Bhalukona also needs around Rs.400 Crores to reach a level of mine lease application

Addressed the immediate funding needs for Kyrgyzstan (₹60-100 crores) and future capex for Bhalukona (₹400 crores), indicating significant capital requirements beyond current resources.

Asked by Manish Gupta, MoneyGrow Asset Private Limited

Timelines for Bhalukona and Spain Tungsten mining lease applications Direct
In terms of Bhalukona, we have to apply the mining lease by next year. So, by next October we have to do it... In terms of Spain, actually the time period is much less. We have to launch the mining lease application by October or November this year.

Provided specific target timelines for submitting mining lease applications for two key future projects, Bhalukona and Spain Tungsten, which are critical milestones.

Asked by Chirag Khandelwal, Individual Investor

Jonnagiri gold production volume for March and April Direct
In March and April, as I understand, it is around 30 kilos each that have been produced. April numbers, I am yet to get it, but it will be around 30 kilos.

Provided specific, albeit preliminary, production volumes for Jonnagiri for the initial months of operation, offering early insight into operational ramp-up.

Asked by Sandeep Mathivanan, MoneyGrow Asset

Promoters selling shares and their participation in rights issue Partial
The promoter is not one individual, but there are multiple, there are two companies. One is Rama Mines, Mauritius and then the other one is Australian Indian Resources... The key promoters again with whom we have been talking and they have in fact contributed during rights issue also as you all know.

Clarified that key promoters participated in the rights issue and are not selling shares, addressing concerns about promoter commitment and shareholding stability.

Asked by Deepak Pandey

Readiness for a potential FPO and its timing Partial
As I think he has already told this FPO planning would come only after the present projects get into... No, how much you will raise can be done decided. But are you ready with all the paperwork? You are that merchant banking guy Nitin. Are you ready with all the paper because let us be very frank. You guys are very good. You have done a great job but I think when it comes to implementing, we always have delays. So we need to do paperwork in advance.

Analyst pressed on the company's readiness for a follow-on public offer (FPO) to fund future growth, highlighting potential delays in execution despite strategic intent.

Asked by Deviinder Gupta

2 min read 6 chapters

Detailed narrative

Debt-Free Status and Rights Issue

Deccan Gold Mines successfully completed a rights issue, raising ₹315 crores. This capital infusion enabled the company to repay all outstanding debts totaling ₹219 crores by the end of March 2026, achieving a debt-free status. This financial restructuring is a significant milestone, providing a stronger balance sheet for future growth initiatives.

Jonnagiri Gold Project Operational Update

The Jonnagiri Gold project, where Deccan Gold Mines holds a 26% stake through Geomysore Services, has commenced revenue generation from trial production. The project has achieved profitability, with approximately 30 kilos of refined gold produced in both March and April 2026. For FY27, the project forecasts production of 600 kg, generating ₹900 crores in revenue with a 75% EBITDA margin, and contributing ₹120 crores in PAT attributable to Deccan Gold Mines. The company aims to increase resources to 32 tons (1 million ounces) in the next year.

Kyrgyzstan Gold Project Progress and Outlook

The Kyrgyzstan gold project, a 60% owned subsidiary, is on track for commissioning the Merrill-Crowe system in June 2026 and the full-scale leaching circuit by end of July 2026, targeting commercial production by August 2026. The production forecast for FY27 is 160 kg, rising to 300-350 kg in FY28. Revenue for FY27 is projected at ₹300 crores, with ₹60 crores in PAT attributable to Deccan, and PAT margins expected to reach 40-45% at peak stage. The project requires an additional ₹60-100 crores for completion.

Bhalukona Nickel-Copper-PGE Discovery

Deccan Gold Mines announced a significant discovery of economic grade Nickel-Copper-PGE mineralization in its 100% owned Bhalukona project. Initial drill results from seven completed holes show a mineralized zone of 1.3 kilometers, with one hole intersecting 2.6 meters at 1.01% nickel, 0.29% copper, and 0.2 g/t palladium. The company aims to prove up 70,000-80,000 tonnes of nickel equivalent resource and plans to submit the mining lease application by October 2026, with a processing plant capex estimated at ₹400-500 crores.

Spain Tungsten Project Development

The Logrosan Tungsten project in Spain is progressing, with Deccan Gold Mines increasing its stake to 51% by investing €1.76 million, with rights to go up to 95%. Initial drilling has intersected tungsten mineralization up to 300 meters depth, with some intersections showing high grades like 96 grams per ton of gold, indicating a Gold-Tin-Tungsten project. The company plans to launch the mining lease application by October/November 2026, with estimated capital requirements of ₹500 crores for the project.

Future Growth and Funding Strategy

Deccan Gold Mines envisions operating 2-3 gold mines and a couple of critical mineral mines by 2030, aiming to be a leading producer in India. This ambitious roadmap requires substantial future funding, estimated at ₹800-1000 crores ($100 million) for the next year or so, to develop projects like Bhalukona and Spain Tungsten. The company plans to assess funding modalities, including equity and debt, after the Kyrgyzstan project is commissioned and initial drill results from other projects are finalized.

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