Munjal Showa Limited has received an Income Tax demand notice imposing a penalty of ₹37.35 lakhs for assessment year 2015-16, the company disclosed to stock exchanges on April 13, 2026.

Tax Notice Details

The company received the demand notice on April 12, 2026, under section 156 of the Income-Tax Act, 1961, along with Order 143(3) read with section 271(1)(c) of the Income-tax Act, 1961. The notice carries DIN & Notice No. TBA/PNL/F/271(1)(c)/2025-26/1087837368(1).

Nature of Violation

According to the assessment order for AY 2015-16 passed under section 143(3) of the Income Tax Act, 1961, excess MAT credit of ₹37.35 lakhs was disallowed. The penalty of ₹37.35 lakhs has been levied under section 271(1)(c) of the Income Tax Act, 1961 for alleged furnishing of inaccurate particulars of income.

Company's Response Strategy

Munjal Showa Limited has indicated its intention to challenge the penalty notice based on strong merits. The company plans to file an appeal before the Commissioner of Income Tax Appeals to contest the demand.

Regulatory Compliance

The disclosure was made under Regulation 30 read with Schedule III of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. The information was provided as per Para A of Part A of Schedule III read with Regulation 30 of the Listing Regulations and SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

The company secretary and compliance officer Ravinder Sharma signed the disclosure document, ensuring compliance with stock exchange notification requirements for both BSE and NSE where the company's shares are listed.

Munjal Showa Limited has delivered strong financial performance for the third quarter of fiscal year 2026, with the auto components manufacturer reporting significant growth in both revenue and profitability. The company's Board of Directors approved the unaudited financial results for the quarter and nine months ended December 31, 2025, during their meeting held on February 07, 2026.

Strong Quarterly Performance

The company demonstrated robust quarterly performance with substantial improvements across key financial metrics. Revenue from operations increased to Rs. 34,968.17 lakhs in Q3 FY26, marking a growth of 9.59% compared to Rs. 31,908.48 lakhs in the corresponding quarter of the previous year.

Nine-Month Performance Overview

For the nine months ended December 31, 2025, Munjal Showa Limited maintained its growth trajectory with consistent performance improvements. The company reported revenue from operations of Rs. 96,834.66 lakhs compared to Rs. 94,755.83 lakhs in the corresponding period of the previous year, representing a growth of 2.19%.

Exceptional Items and Special Provisions

The company reported exceptional items charge of Rs. 220.02 lakhs during the quarter, related to the implementation of new Labour Codes. The Government of India notified provisions of various labour codes on November 21, 2025, which resulted in an increase in gratuity liability arising from past service cost. The company presented this incremental amount as an exceptional item due to its non-recurring nature.

Additionally, total expenses for the nine months ended December 31, 2025, were higher by Rs. 322.51 lakhs due to separation costs paid to employees opting for the Voluntary Retirement Scheme (VRS).

Operational Efficiency and Cost Management

The company maintained effective cost management while scaling operations. Cost of materials consumed increased proportionally with revenue growth, reaching Rs. 26,859.36 lakhs in Q3 FY26 compared to Rs. 24,881.32 lakhs in the previous year. Employee benefits expense stood at Rs. 3,187.69 lakhs for the quarter, reflecting the company's investment in human resources.

Corporate Governance and Compliance

The financial results have been prepared in accordance with Indian Accounting Standard 34 "Interim Financial Reporting" and comply with SEBI Listing Regulations. The results were reviewed by the Audit Committee and subjected to limited review by statutory auditors Deloitte Haskins & Sells LLP. The company operates within a single primary business segment of auto components and has no subsidiary, associate, or joint venture companies as of December 31, 2025.