Innovision Limited has received a favorable order from the tax authorities, significantly reducing a penalty related to GST compliance. The Additional Commissioner, Central Goods & Service Tax Commissionerate, Dehradun, modified the separate record-keeping penalty under Section 122(1)(xvi) of the Central Goods and Services Tax Act, 2017 (“CGST Act”) and the UKGST Act to a fixed amount of ₹10,000. The company received the order on August 11, 2026, concluding a dispute initiated by an order dated March 20, 2026, which Innovision received on March 30, 2026.

The resolution eliminates significant potential liabilities that had been cited during the proceedings. According to the filing, the original dispute involved tax payable amounts of ₹15,70,378 under CGST and an equal amount under SGST for FY 2019-20, with associated penalties of ₹31,40,756 each. For FY 2023-24, the cited tax payable was ₹3,33,98,202 under each head, with penalties of ₹6,67,96,404 each. The total liability referenced in the dispute stood at ₹94,22,268 for FY 2019-20 and ₹20,03,89,212 for FY 2023-24 under both CGST and SGST heads. The final order reduced the specific record-keeping penalty to ₹10,000.

The company disclosed the development under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The intimation was submitted to the Listing Departments of BSE Limited and National Stock Exchange of India Limited on August 12, 2026. The disclosure aligns with Clause 20 of Para A of Part A of Schedule III of the LODR Regulations, read with SEBI Circular No: SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023, and SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.

Innovision Limited further addressed the pendency of litigation requirements under Clause 8 of Para B of Part A of Schedule III of the LODR Regulations. This disclosure was made in accordance with Clause 8.1 of the SEBI circular dated January 30, 2026. Based on the company’s assessment, prevailing laws, and advice from counsel, management determined that the outcome of the litigations is not reasonably expected to have any material financial impact on the listed entity. The details were provided as required under Clause 8 of Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Circular No: SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023, and SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

The dispute originated from issues raised by the GST Department regarding filed GSTR returns for the relevant periods. The final status of the litigation is recorded as "Decided in Favour of the Appellant Company-Innovision Limited," superseding the previous status of "Set Aside." There are no adverse financial implications on the company arising from this order.

Innovision Limited reported a consolidated net loss of ₹73.55 million for the quarter ended June 30, 2026, marking a significant turnaround from the net profit of ₹123.87 million recorded in the corresponding quarter of FY25. While top-line growth remained robust with revenue rising 18.3% year-on-year to ₹2,638.15 million, profitability was eroded by a sharp decline in EBITDA, which swung to a negative ₹100.77 million from a positive ₹160.22 million in the prior year period. The results were approved by the Board of Directors at a meeting held on August 12, 2026, and reviewed by statutory auditors S R G A & Co.

The standalone entity also posted a net loss of ₹67.05 million for the quarter, compared to a net profit of ₹126.93 million in Q1FY25. Standalone revenue from operations increased 18.3% to ₹2,637.86 million. The reversal in profitability across both standalone and consolidated structures highlights margin pressure despite higher sales volumes. The financial statements were prepared in accordance with Indian Accounting Standards (Ind AS) and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Segment Performance

The Toll segment remained the primary revenue driver, contributing ₹1,757.13 million in the quarter, up from ₹1,287.51 million in Q1FY25. However, this segment’s EBITDA deteriorated significantly to a negative ₹90.19 million, down from a positive ₹177.74 million in the previous year. The Security segment generated ₹870.26 million in revenue, slightly lower than the ₹917.62 million reported in Q1FY25, while its EBITDA improved to ₹13.53 million from a negative ₹19.59 million. The Skill, training and development segment saw revenue contract to ₹10.48 million from ₹24.91 million, with EBITDA turning negative at ₹(17.93) million.

Key Financial Metrics

Consolidated total income stood at ₹2,672.95 million, while total expenses rose to ₹2,778.01 million. Direct expenses accounted for the largest portion of costs at ₹1,798.00 million, followed by employee benefits expense at ₹868.55 million. Finance costs remained relatively stable at ₹34.05 million. The company recorded a deferred tax credit of ₹31.51 million, which partially offset the pre-tax loss of ₹105.06 million. Basic earnings per share (EPS) came in at a loss of ₹2.85, compared to earnings of ₹6.71 in the same quarter last year.

What the Numbers Show

The divergence between revenue growth and operating performance is notable. While Innovision achieved an 18.3% increase in consolidated revenue, the EBITDA margin turned sharply negative. This suggests that cost inflation or pricing pressures in the high-revenue Toll segment outweighed volume gains. The Toll segment’s EBITDA swing of over ₹260 million year-on-year indicates structural changes in operational efficiency or cost structure within that division. Meanwhile, the Security segment demonstrated resilience, improving its EBITDA position despite flat revenue, pointing to potential cross-segment margin disparities.

Corporate Developments

During the quarter, Ms. Sudha Hooda resigned as an Independent Director effective April 6, 2026. Mr. Aditya Jha was appointed as an Independent Director effective April 10, 2026, with shareholder approval obtained at the Extra-Ordinary General Meeting held on July 8, 2026. Additionally, the company resolved pending GST demand orders for FY 2019-20 and FY 2023-24 after appellate authorities decided in its favor. Unutilized IPO proceeds amounting to ₹1,425.09 million were largely invested in fixed deposits, with ₹1,424.95 million placed in scheduled commercial banks.