Synopsis:-Deccan Gold Mines Limited, still a pre-revenue gold explorer, reported a consolidated loss before tax of Rs.76.17 crore for FY26 a marginal improvement from Rs.83.70 crore in FY25 while the standalone loss halved to Rs.13.28 crore from Rs.46.70 crore, aided by lower ESOP charges and growing interest accruals on Avelum loans; the more significant disclosure is operational: the Altyn Tor gravity circuit in Kyrgyzstan has been commissioned, concentrate production is slated for June 2026, and commercial operations are targeted by August 2026 a milestone that would make this the company’s first revenue-generating gold asset.
Shares of India’s only listed gold exploration and development company came into focus on May 14, 2026, after its board approved consolidated and standalone audited results for the quarter and year ended March 31, 2026. The results arrive alongside a separate BSE disclosure confirming the commissioning of the Altyn Tor gravity circuit, a development that moves the Kyrgyzstan project from the capital-deployment phase into the early production phase.
With a market capitalization of approximately Rs. 2,479.51 crore, the shares of Deccan Gold Mines Limited were last trading at Rs.125.40 per share, up 3.53 percent from its previous close of Rs.121.2.
On a consolidated basis, loss before tax for FY26 was Rs.76.17 crore, modestly improved from Rs. 83.70 crore in FY25. The improvement at the consolidated level is narrow; the more meaningful movement is at the standalone level, where loss before tax fell sharply to Rs. 13.28 crore from Rs.46.70 crore in FY25. Two factors drove the standalone improvement: ESOP-related expenses dropped to Rs.12.53 crore from Rs.32.74 crore in FY25 as the prior-year stock option vesting cycle wound down, and interest income on the company’s unsecured inter-company loans to its Kyrgyzstan subsidiary Avelum Partner LLC accrued to Rs.18.66 crore though this income will only be cash-realised when commercial production commences.
Finance costs at the consolidated level were Rs.15.09 crore (Rs. 150.86 million), reflecting the borrowings taken on to part-finance Altyn Tor development. Depreciation was Rs.15.98 crore (Rs. 159.77 million) , the bulk attributed to Avelum’s assets as they are brought into productive use.
Rights Issue and Capital Deployment
The defining corporate event of FY26 was the Rs.314.70 crore rights issue completed in December 2025 35.34 crore shares offered at Rs.80 per share to existing shareholders. As of March 31, 2026, Rs.314.65 crore of proceeds have been utilised: Rs.203 crore went toward the full repayment of inter-corporate deposits, Rs.31.50 crore toward project development at the Altyn Tor Gold Mine, Rs.52.69 crore (reallocated after shareholder approval at the February 2026 EGM) to subscribe to the rights issue of associate Geomysore Services (India) Private Limited which holds the Jonnagiri gold project in Karnataka and the remainder toward general corporate purposes and issue expenses.
The rights issue drove consolidated equity up sharply to Rs.495.05 crore (Rs. 4,950.45 million) from Rs.240.86 crore in FY25, and paid-up equity share capital rose to Rs.197.90 million (19.79 crore shares) from Rs.156.92 million. Total consolidated assets grew to Rs.562.80 crore from Rs.401.17 crore.
Altyn Tor and the Avelum Loan Overhang
The Altyn Tor project in Kyrgyzstan held through subsidiary Avelum Partner LLC is the company’s nearest-term path to revenue. The auditors flagged, without modifying their opinion, that standalone unsecured loans to Avelum have grown to Rs.190.16 crore (Rs. 1,901.64 million) from Rs.50.73 crore in FY25 accumulating at 15 percent per annum with both principal and interest repayable only upon commencement of commercial production.
Management has guided that commercial production begins in FY2026-27, with the gravity circuit now commissioned and concentrate production targeted for June. If that timeline holds, the loan and interest recoverability concern resolves; if there are further delays, the carrying value of Rs.190.16 crore on the standalone balance sheet will face growing scrutiny.
Consolidated capital work-in-progress at Avelum stood at Rs.72.80 crore (Rs. 728.02 million) versus Rs.51.95 crore in FY25, and intangible assets under development (exploration costs capitalised) were Rs.47.13 crore at the consolidated level.
Geomysore Services (India) Private Limited, the associate holding the Jonnagiri gold project, contributed a share of profit of Rs.0.75 crore to the consolidated results along with a Rs.0.51 crore gain from a change in holding percentage. Given the Rs.52.69 crore subscribed in GMSI’s rights issue during FY26, the Jonnagiri asset now commands a larger share of total capital deployed and will be watched for any progress on mining lease approvals.
Promoter holding has continued its multi-year decline from 30.54 percent in June 2023 to 20.62 percent as of March 2026 reflecting dilution from successive equity issuances including the rights issue and ESOP allotments. Two new subsidiaries were incorporated during the year: Novadhatu Minerals Private Limited (India) and Deccan Mineracao Mozambique LDA both with no capital infused as yet.
Business Overview
Deccan Gold Mines Limited, incorporated in 1984 and listed on the BSE, is India’s only listed pure-play gold exploration and development company. It operates through Indian subsidiary Deccan Exploration Services Private Limited, foreign subsidiaries Avelum Partner LLC (Kyrgyzstan, holding the Altyn Tor project), Deccan Gold FZCO (Dubai), and Deccan Gold Tanzania Private Limited, and holds a stake in Indian associate Geomysore Services (India) Private Limited.
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