BGR Energy Systems faces revised GST demand of Rs. 94.3 crore

BGR Energy Systems has received a rectification order from the Assistant Commissioner (ST), Ponneri Assessment Circle, under Section 161 of the TNGST Act, 2017, revising the tax demand to Rs. 94,29,93,514 for the assessment year 2018-19. The order, dated May 29, 2026, rectifies an earlier remanded order dated February 3, 2026. The revised demand comprises tax, interest, and penalty under the Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) heads.

The regulatory action follows a GST audit for FY 2018-19, where discrepancies were observed regarding tax liability on advances received and trade payables. The authority partly accepted the company's rectification application, revising the demand while confirming the balance liability concerning the specified contraventions.

Details of the Order

The disclosure was made to the exchanges pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The key particulars of the order are detailed below:

Particulars	Details
Name of the authority	Assistant Commissioner (ST) (FAC), Ponneri Assessment Circle
Nature of action	Rectification Order dated May 29, 2026, under Section 161 of the TNGST Act, 2017, for assessment year 2018-19
Date of order and receipt	May 29, 2026
Revised demand	Rs. 94,29,93,514 (including tax, interest, and penalty under CGST and SGST)

Violations and Impact

The alleged contraventions identified by the authority pertain to discrepancies observed during the GST audit. Specifically, these relate to tax liability on advances received and trade payables. While the authority revised the demand after considering the company's submissions, the balance demand regarding these items was confirmed.

BGR Energy Systems stated that there is no material financial impact on the company at this stage. Consequently, the company intends to file an appeal against the said rectification order to challenge the demand.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.30%	+2.32%	+18.29%	-17.78%	+192.56%	+443.60%

BGR Energy Systems reported a standalone net loss of ₹1,279.82 crore for the financial year ended March 31, 2026, widening from a loss of ₹981.05 crore in the previous year. Revenue from operations for the year stood at ₹2,996.9 crore, down from ₹4,511.9 crore in FY25. The company's statutory auditors, M/s Anand & Ponnappan, noted a material uncertainty related to the company's ability to continue as a going concern, although they did not modify their opinion on this matter.

The board approved the audited financial results for the fourth quarter and financial year ended March 31, 2026, on a standalone and consolidated basis. For the quarter ended March 31, 2026, the company reported a standalone net loss of ₹761.87 crore on a year-on-year basis compared to a loss of ₹330 crore in Q4 of the previous year, and compared to a loss of ₹193.2 crore in the preceding quarter ended December 31, 2025. Q4 revenue stood at ₹501 million rupees versus ₹1.3 billion rupees in the same quarter of the previous year. Total income for the quarter was ₹119.36 crore.

Key Financial Metrics (Standalone)

The following table summarises the company's standalone financial performance for FY26 against FY25:

Metric:	FY26 (₹ in Lakhs)	FY25 (₹ in Lakhs)
Revenue from Operations:	2,99,690	4,51,190
Total Income:	4,22,590	6,40,440
Total Expenses:	1,70,241	1,61,685
Net Profit / (Loss):	(1,27,982)	(98,105)
Earnings Per Share (Basic):	(177.35)	(135.95)

The auditors highlighted emphasis of matters regarding claims of ₹1,62,042 lakhs for the NUPPL Ghatampur contract and ₹76,980 lakhs for the NTTPS Vijayawada contract, which are pending customer approval. Costs amounting to ₹23,455 lakhs and ₹5,307 lakhs respectively were charged to the statement of profit and loss during the year.

Board Approvals and Corporate Actions

The board approved increasing the authorised share capital from ₹100 crore to ₹200 crore, divided into 20 crore equity shares of ₹10 each. This alteration to the capital clause of the Memorandum of Association is subject to shareholders' approval via postal ballot. Additionally, the board constituted a Rights Issue Committee to oversee a proposed rights issue in the future.

The company appointed M/s R Bupathy & Co Chartered Accountants as the Internal Auditor and M/s J.V Associates Cost & Management Accountants as the Cost Auditor for the financial year 2026-2027. These appointments were made to comply with the Companies Act, 2013, and SEBI (LODR) Regulations, 2015.

Auditor's Report and Going Concern

The statutory auditors issued an unmodified opinion on the standalone financial results. However, they drew attention to the assignment of the company's outstanding dues to the National Asset Reconstruction Company Limited (NARCL) by nine public sector banks. While the company is in discussions with NARCL for a resolution that may significantly reduce debt, the auditors stated that material uncertainty exists regarding the company's ability to continue as a going concern pending the finalization of these terms.

For the consolidated financial results, the auditors issued a qualified opinion due to the inclusion of unaudited financial results of material subsidiaries, BGR Boilers Private Limited and BGR Turbines Company Private Limited. The consolidated net loss for FY26 was ₹1,291.72 crore.

Regulatory Filing

Pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company submitted a corrected declaration for the standalone financial results for the year ended March 31, 2026. The company stated that the required declaration was available but was inadvertently missed in the initial PDF submission. The corrected documents were submitted to the exchanges on May 29, 2026.