Aksh optifibre LIMITED has announced a significant development regarding its tax proceedings, with the Deputy Commissioner, Rajasthan State Tax, Jaipur issuing a rectification order that substantially reduces the company's tax liability. This development follows the company's earlier disclosure made on December 30, 2025, under SEBI listing regulations.

Major Reduction in Tax Demand

The rectification order dated March 25, 2026, has brought substantial relief to the company by dramatically reducing the original tax demand. The revision represents one of the most significant reductions in recent corporate tax proceedings.

Regulatory Background

The original demand was raised under multiple sections of tax legislation, demonstrating the comprehensive nature of the assessment. The demand was issued under the following legal provisions:

• Sections 73, 50 and 73(9) of the Rajasthan Goods and Services Tax Act, 2017
• Central Goods and Services Tax Act, 2017
• Section 20 of the Integrated Goods and Services Tax Act, 2017
• Rules made under the aforementioned acts

The rectification order was issued by the Office of the Deputy Commissioner-B, Business Audit, Wing – VI, State Tax, Rajasthan, Jaipur, indicating the involvement of specialized audit wings in the assessment process.

Company's Response and Future Actions

Despite the substantial reduction in the tax demand, AKSH OPTIFIBRE LIMITED has indicated its intention to challenge the remaining liability. The company is currently in the process of filing an appeal against the balance demand of ₹94,22,212.

The management has assessed the potential impact of this development on the company's operations and has concluded that no material adverse effects are anticipated at this stage. This assessment covers the company's financial position, operational activities, and other business functions.

Compliance and Disclosure

The company has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The announcement also complies with requirements under SEBI Master Circular no. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, ensuring complete transparency with stakeholders and regulatory authorities.

Aksh Optifibre Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, revealing continued operational challenges with widening losses across both standalone and consolidated operations.

Financial Performance Overview

The company reported a standalone net loss of ₹380.66 crores for Q3FY26, significantly higher than the ₹292.52 crores loss recorded in Q3FY25. Revenue from operations declined 7.86% year-on-year to ₹2,623.47 crores from ₹2,847.09 crores in the corresponding quarter of the previous fiscal year.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, the financial deterioration was more pronounced. The company posted a net loss of ₹882.09 crores compared to ₹250.77 crores in the corresponding period of FY25. Revenue from operations for the nine-month period stood at ₹8,393.42 crores, down from ₹9,533.82 crores in the previous year.

Segment-wise Performance

The company operates through two primary segments - manufacturing and services. During Q3FY26, the manufacturing segment generated revenue of ₹1,331.09 crores but reported a segment loss of ₹342.15 crores. The services segment contributed ₹1,292.38 crores in revenue and achieved a segment profit of ₹69.31 crores.

Consolidated Results

On a consolidated basis, the company's performance was even more challenging. Consolidated net loss for Q3FY26 widened to ₹580.54 crores from ₹473.57 crores in Q3FY25. Consolidated revenue from operations increased marginally to ₹2,640.41 crores from ₹2,898.69 crores in the previous year quarter.

Key Financial Challenges

The company continues to face significant operational headwinds with total expenses of ₹3,157.88 crores exceeding total income of ₹2,646.33 crores during the quarter. Finance costs increased to ₹169.05 crores from ₹132.02 crores year-on-year, reflecting higher borrowing costs.

Legal and Regulatory Matters

Aksh Optifibre faces ongoing legal challenges with banking institutions. The company has received notices from Union Bank of India under SARFAESI Act provisions and has filed a stay application before the Debt Recovery Tribunal in Jaipur. Additionally, HDFC Bank has issued a notice under Section 13(2) of SARFAESI Act for a claim amount of ₹3,663 crores. The company has filed appropriate replies and continues to protect stakeholder interests through legal proceedings.