JK Lakshmi Cement Limited announced that the GST appellate authority has ruled in its favour for FY 2019-20, setting aside a total tax demand of Rs. 1626.41 Lakhs. The Office of the Additional Commissioner (Appeal) of State Tax, Chhattisgarh, issued an order on June 11, 2026, overturning the earlier demand raised by the Office of the Joint Commissioner of State Tax, Durg Division, Chhattisgarh.

The company had previously received orders on August 29, 2024, and August 30, 2024, which raised a demand involving tax, interest, and penalty. The appellate decision removes this financial liability, resulting in no expected financial implications for the company.

Breakdown of Original Demand

The original demand contested by the company included significant components for tax, interest, and penalty related to the Reverse Charge Mechanism (RCM) and Input Tax Credit.

The dispute primarily concerned the application of the Reverse Charge Mechanism on inter-state purchases on a pro-rata basis, disallowance of Input Tax Credit, and certain other matters. Following the company's challenge, the appellate authority accepted the arguments, leading to the demand being set aside.

The disclosure was submitted to the exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

JK Lakshmi Cement Limited has approved an investment of up to ₹24 crore to acquire 26% equity stakes in two Special Purpose Vehicles (SPVs) — DynoSpark Private Limited and Elevate Solar Energy Private Limited — to secure captive solar power for its manufacturing units. The Committee of Directors sanctioned the proposal on 4 June 2026, enabling the company to reduce power costs through renewable energy sourcing. The total investment involves up to ₹16 crore for DynoSpark and up to ₹8 crore for Elevate Solar, with both transactions expected to be completed by 31 October 2026.

Strategic Expansion into Renewable Energy

The initiative involves setting up solar power plants at the company's Udaipur and Durg units under the captive power route. For the Udaipur Unit, the project entails a 25 MW (AC)/36.25 MW (DC) Solar Power Plant with a 20 MWh Battery Energy Storage System (BESS). The Durg Unit will host a 17.14 MW (AC)/24 MW (DC) Solar Power Plant. Oriana Power Limited will serve as the project implementor for the Udaipur facility, while M/s Evolve Energy Group will handle the Durg facility. These projects will allow JK Lakshmi Cement to procure solar power at competitive market rates.

Financial Details of Target Entities

DynoSpark Private Limited, incorporated on 27 July 2025, reported a turnover of nil and a net worth of ₹0.34 Lakh for the financial year ended 31 March 2026. Elevate Solar Energy Private Limited, incorporated on 16 January 2025, has no operational history yet. Both entities operate in the power generation sector using solar energy. The acquisitions are not related party transactions and do not require specific governmental or regulatory approvals beyond standard compliance.

The following table summarises the key details of both investments:

The move aligns with the company's strategy to increase the sourcing of renewable power across its plant locations.