BSECompany Update3d ago · 17 Oct 2026, 06:23 pm

Intimation regarding temporary reduction in Production

Divyashakti Ltd · 526315

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Divyashakti Ltd has announced a temporary reduction in production levels due to increased input and logistics costs, including a 41% effective duty burden on Indian-origin products in the US market, and increased crude oil prices affecting the company's cost structure.

Analysis Scores

Earnings Impact4/10
Growth Catalyst2/10
Governance Concern1/10
Regulatory Risk3/10
Balance Sheet Risk6/10
Liquidity Impact4/10
Market Sentiment2/10

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Divyashakti Ltd - 526315 - Intimation Regarding Temporary Reduction In Production Levels Due To Increased Input And Logistics Costs.

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CIN : L99999TG1991PLCO12764 |VUdShdHti I_Imited @ divyashakti.com Q +91-40-23730240 info@divyashakti.com | +91-98493 02402 {Formerly Known as Divyashakti Granites Ltd.) Date: 17th October, 2026 The Deputy General Manager, Corporate Relationship Department, The Stock Exchange, Mumbai, 1st Floor, New Trading Ring, Rotunda Building, P.J. Towers, Dalal Street, Fort, Mumbai- 400 001. Fax: 022 22723121. Dear Sir/Madam, Sub: Intimation regarding temporary reduction in production levels due to increased input and logistics costs. Ref: Scrip Code: BSE: 526315 Pursuant (o Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the Company is facing significant challenges arising from substantial increases in raw material, consumable, freight and logistics costs, coupled with continuing disruptions in international trade and shipping. With effect from 1 September 2026, the additional tariff burden imposed by the United States on the affected Indian-origin products, comprising 12.5% and 25% tariffs and approximately 4% countervailing duty (CVD), as applicable, has resulted in an overall effective duty burden of approximately 41%. The consequent increase in the landed cost of these products has adversely affected their competitiveness in the US market and placed pressure on the Company’s export volumes, selling prices and margins. Further, ongoing geopolitical tensions and the resulting increase in crude oil prices have affected the Company’s cost structure. Crude oil prices have increased from around USD 45 per barrel to approximately USD 108 per barrel. This has had a direct and indirect impact on the prices of petroleum-based and other key raw materials. For instance, the cost of resin, one of the Company’s major raw materials, has increased from approximately 3100 per kg to 2172 per kg, an increase of approximately 72%. Prices of other raw materials, consumables and related inputs have also increased considerably. The Company has continued to absorb a significant portion of these cost increases to maintain operations. However, given the additional tariff burden and prevailing market conditions, it has become increasingly difficult to pass on the full increase in costs to customers. Consequently, the Company’s margins and cash flows remain under considerable pressure. Digitally signed HARI HARA by HARIHARA NALLAPAT] Date:2026.10.17 17:15:51 +05'30" Divyashakti Complex, Flat Nos. 1-301-304, 3rd Floor, 7-1-58, Ameerpet, Hyderabad, Telangana - 500 016. INDIA DIVYASHAKTI LIMITED Ocean freight rates have also increased significantly, from approximately USD 1,300 per container to as high as USD 9,000 per container, making exports considerably more expensive and contributing to delays in dispatches. In view of these circumstances, including prevailing cost pressures, export market conditions, raw material availability and logistics constraints, the Company has decided to temporarily reduce its production levels with effect from 29 September 2026. This operational measure is intended to align production with prevailing demand, input costs, raw material availability and logistics conditions. The Company will continue to monitor developments in the international trade environment and geopolitical situation, as well as raw material and consumable prices, container availability, freight rates and market conditions. As these conditions stabilise and costs move towards more sustainable levels, the Company will review the situation and progressively restore normal production levels. The Company remains committed to maintaining operational efficiency and taking appropriate measures to safeguard its business and the interests of its stakeholders. This is for your information and records. Thanking you, Yours faithfully, FOR DIVYASHAKTI LIMITED HARI HARA Digitally signed by HARI HARA PRASAD PRASAD NALLAPATI Date: 2026.10.17 NALLAPATI 171621 40530 N. HARI HARA PRASAD Managing Director DIN: 00354715