Chairman’s Statement at 136th AGM – 28th September, 2026
Dear Shareholders,
It gives me immense pleasure to extend a very warm welcome to all of you to the 136th AGM of DCM Limited.
I sincerely thank you for joining us through video conferencing and for your continued support.
I would now like to brief you on the economic scenario and your Company’s business performance during the financial year 2025-26.
ECONOMIC SCENARIO
India’s economy demonstrated resilience during financial year 2025-26 despite global geopolitical tensions, global trade and supply chain uncertainties, inflationary pressures and commodity market volatility, with real GDP growth estimated at 7.7%, including 7.8% in Q4 which was supported by strong domestic demand, government capital expenditure, services growth and structural reforms.
(Source: press release dated June 5, 2026 by Ministry of statistics and programme implementation)
Looking ahead, India’s outlook for the financial year 2026-27 remains positive, driven by favorable demographics, urbanization, digital adoption, expanding manufacturing and continued investment, with the RBI projecting GDP growth of around 6.6% and inflation at 5.1% (approx.).
(Source: RBI Monetary Policy Statement, June 5, 2026)
COMPANY’S BUSINESS PERFORMANCE
Let me now take you through the performance of your Company during financial year 2025-26:
Our businesses are broadly classified under three segments- Real Estate, IT-Infrastructure and Engineering Division.
Real Estate
The Company had signed a Joint Development Agreement (JDA) with GCD Prime (“Developer”) on August 11, 2022, for development of 68.35 acres of land situated at Village Bir Hisar, Sector-23, Hisar, Haryana, for setting up an affordable residential plotted colony under the Deen Dayal Jan Awas Yojana-2016 (“Project”), subject to fulfilment of applicable terms and receipt of regulatory approvals.
The Company received License No. 179 of 2022 on November 10, 2022, for joint development with the Developer of 67.275 acres of the said Hisar land under the Regulation of Urban Area Act, 1975. Under the JDA among other obligations, the Developer was responsible for obtaining and maintaining all statutory approvals, including the said license.
In April 2023, the Director General, Town and Country Planning, Haryana, suspended License No. 179 of 2022, noting that an enquiry had been initiated by the Deputy Commissioner in respect of the Company’s land at Hisar.
Due to inordinate delay in the matter and continuing breaches of obligations by the Developer in obtaining revocation of the suspension order from the Haryana Government, the Company issued a notice of forfeiture and termination of the JDA on November 1, 2025, notifying the Developer that the amount paid by them would stand forfeited upon expiry of 15 days from receipt of the notice, following which the JDA would stand terminated and the Developer’s rights under the JDA would be revoked.
The Developer filed a petition under Section 9 of the Arbitration & Conciliation Act, 1996, before the Delhi High Court seeking, inter alia, a stay on the said termination notice and restraint against Company from creating third-party rights in respect of the project land. The said petition was dismissed by the Hon’ble Court on July 28, 2026.
The Developer filed an appeal against the said judgment dated July 28, 2026, of the Single Bench. In the appeal, the Divisional Bench has passed an Interim Order dated August 12, 2026, for status quo be maintained with respect to the property forming the corpus to the JDA. The appeal is presently pending for final adjudication.
The Developer also invoked arbitration under Section 21 of the Arbitration & Conciliation Act, 1996. Arbitration proceedings have commenced before a Sole Arbitrator who was appointed with the consent of both parties.
As per the legal advice, the Company has a strong arguable case on merits for termination of JDA and forfeiture of advance of Rs. 5,000 lakhs received from the Developer.
Subject to the outcome of the appeal and arbitration proceedings, the Company will evaluate appropriate steps in relation to the project land, including exploring other options as may be available in accordance with the applicable laws.
Pending adjudication of the appeal and conclusion of the arbitration proceedings, and without prejudice to the Company’s right to forfeit the advance of ₹5,000 lakh, no adjustment has been made in the financial statements in respect of the said advance.
IT Infrastructure
The Company is engaged in the business of providing IT Infrastructure services specializing in networking, analytics, cloud and digital technologies through its wholly owned subsidiary namely DCM Infotech Limited (hereinafter referred to as ‘Material unlisted Subsidiary Company’/’DCM Infotech’).
During the year under review, the turnover and other income generated by DCM Infotech was Rs. 74.09 Crores (previous year Rs. 70.43 Crores) and Profit before Tax (PBT) was Rs. 9.92 Crores as compared to (previous year Rs. 10.61 Crores).
During the year, DCM Infotech has continued to strengthen its presence in the emerging field of Agentic AI based automation solutions and has secured multiple customer engagements across the healthcare and financial services sector across India. The Company is focused on providing recurring support to some of the existing, while also exploring the introduction of these solutions in the US market.
DCM Infotech continues to pursue growth opportunities in automation, AI-led business transformation and IT operations and cybersecurity, where customer demand is increasingly driven by productivity enhancement, operational efficiency, regulatory compliance and cost optimisation. During the year under review, DCM Infotech has also made investments to enhance its capabilities in these areas which are consequently expected to support its ability to address evolving customer requirements and support sustainable growth. It believes that, notwithstanding near-term economic uncertainties, the long-term growth drivers for digital transformation, automation, and AI-enabled enterprise solutions remain strong and continue to present significant opportunities for future growth.
Engineering Division
The Engineering Business Undertaking (“Engineering Division”) of the Company, situated at Village Asron, District Shaheed Bhagat Singh Nagar (Punjab), was engaged in the manufacture and supply of castings for various segments of the automotive industry, including cars, multi-utility vehicles, tractors, light commercial vehicles, heavy commercial vehicles and earth moving equipment.
Since 2016, the Engineering Division has been operating in a challenging environment due to persistent labour unrest, which adversely affected its ability to manufacture quality products in a cost-effective manner. In view of the continued industrial unrest, the Company declared a temporary lockout of the Engineering Division with effect from October 22, 2019.
The lockout was opposed by the workmen of the Engineering Division, and the matter is presently sub-judice before the competent labour authorities.
Based on the legal advice received, the management believes that the lockout is legal and justified. The lockout of the Engineering Division continues as on date. The Company is evaluating and pursuing various options concerning its Engineering business/ operations. As and when anything is finalized, it shall seek requisite approval from the stakeholders. In the interim, the Company is continuing with its factory upkeep endeavors and to rationalize the workmen force.
ACKNOWLEDGEMENT
On behalf of your Company’s Board, I want to thank all the stakeholders, business associates, employees, banks and the Central and State Governments, who have extended their support to the Company. The Company believes that by focusing / managing of its real estate operations and/or Company’s plan of restructuring of its Engineering business undertaking as well as other interim measure, the Company will be able to continue and sustain the current business operations and will move forward towards its growth path.
Thank you.
Speech by Mr. Jitendra Tuli, Chairman, at the 136th Annual General Meeting of DCM Limited held on Monday, the 28th day of September, 2026 through Video Conferencing (VC).