Himatsingka Seide Limited has disclosed receiving a significant tax demand notice from the Income Tax Department following an assessment order for the assessment year 2023-24. The textile manufacturer announced this development through a regulatory filing under SEBI listing regulations on April 1, 2026.

Assessment Order Details

The Income Tax Department, Kolkata, passed an assessment order under Section 143(3) read with Section 144C(3) of the Income Tax Act, 1961. The company received the communication of this order on March 31, 2026, after filing its return of income within the due date for the assessment year 2023-24.

Financial Impact and Additions

The Assessing Officer has proposed substantial additions to the company's income, resulting in a significant tax demand. The assessment order includes specific monetary implications that affect the company's tax liability.

Company's Response and Next Steps

Himatsingka Seide has expressed disagreement with the assessment order, stating that the additions made by the Assessing Officer to the income are not justified. Consequently, the company considers the resultant tax demand as not payable and is preparing its legal response.

The company is in the process of filing an appeal against the assessment order. Management has indicated that there is no immediate impact on the company's financials, operations, or other activities due to this order, as they contest the validity of the demand.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 read with Schedule III of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The company also referenced SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2//3762/2026 dated January 30, 2026, in making this announcement to the stock exchanges.

Himatsingka Seide Limited has announced its unaudited financial results for Q3FY26, reporting consolidated revenue from operations of ₹611.37 crores for the quarter ended December 31, 2025. The company's Board of Directors approved these results during their meeting held on February 11, 2026, under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Q3FY26 Financial Performance

The company's consolidated financial results show challenging performance compared to the previous year. Total income for the quarter reached ₹637.26 crores, including other income of ₹25.89 crores, primarily driven by net foreign exchange gains of ₹24.51 crores due to Indian Rupee depreciation against the US Dollar.

Nine-Month Performance Overview

For the nine months ended December 31, 2025, the company demonstrated resilience with consolidated revenue from operations of ₹1,897.88 crores and net profit of ₹60.51 crores.

Capacity Utilization and Business Update

During Q3FY26, the company's manufacturing facilities operated at varying capacity levels, with the spinning division achieving 99% utilization while sheeting and terry towel divisions operated at 58% and 65% respectively.

The revenue decline is primarily attributed to tariff overhang affecting revenue streams from US markets. Despite the reduction of US Tariff from 50% to 18%, the company continues focusing on enhancing revenue streams from non-US jurisdictions.

Strategic Focus and Market Expansion

The Indian market remains a high priority, with the company serving through three brands - Himeya, LIV, and Atmosphere - in addition to private label requirements. The company is expanding presence in multi-brand outlets, large format stores, e-commerce, and quick commerce channels. Executive Vice Chairman and Managing Director Mr. Shrikant Himatsingka noted that new regulatory frameworks will unleash growth opportunities as the company recalibrates its strategy for emerging market dynamics.

Corporate Governance and Earnings Call

During the Board meeting, directors approved the re-appointment of Grant Thornton Bharat LLP as Internal Auditors for Financial Year 2026-27. The company conducted an earnings call on February 12, 2026, at 15:00 hrs IST, moderated by Elara Securities (India) Private Limited, featuring senior management including Mr. Shrikant Himatsingka and Group CFO Mr. M Sankaranarayanan.