I read that Damu Anna was blessed with children by Sai. What were his circumstances before this?

Yes, that's correct. Chapter 25 explains Damu Anna's circumstances before he was blessed with children. The text mentions that he was a well-to-do person from Ahmednagar and a devout follower of Sai Baba. However, despite having two wives, he had no children. This detail is included to highlight the specific suffering that was removed by Sai's grace. The chapter frames this blessing as a direct result of his faith, stating that by receiving Sai's blessings, he was blessed with sons, thereby fulfilling a significant desire and demonstrating Sai's power to remove the misfortunes of His devotees.