Paradeep Phosphates Limited announced on May 19, 2026, that the National Company Law Appellate Tribunal (NCLAT) has rejected its appeal regarding an Entry Tax exemption claim in Odisha. The dispute pertained to the company's eligibility for tax remission under a rehabilitation scheme sanctioned by the Board for Industrial and Financial Reconstruction (BIFR) for the period from 2007 to 2014.

The NCLAT order, dated May 18, 2026, upheld the previous ruling by the National Company Law Tribunal (NCLT). Consequently, the company's plea for exemption under the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA), has been dismissed. Paradeep Phosphates indicated that it is taking appropriate steps to file an appeal against the order before the Supreme Court.

Financial Implications and Provisions

Regarding the financial impact, the company disclosed that it has already fully provided for the liability in its books. The total demand and liability associated with the litigation amount to ₹76 crore. Against this, the company has deposited ₹26 crore under protest.

The company maintains its position that it is eligible for remission of Entry Tax for the period from 2007 to 2011, during which it was classified as a sick industrial company. It exited the sick industrial status following a BIFR order dated August 16, 2011. The company considers the deposit made to be adequate against the liability pertaining to the period from 2011 to 2014.

Future Course of Action

Paradeep Phosphates stated that no material impact on its financials is expected currently due to this development. Any additional impact arising from interest on the unpaid amount is also not anticipated to be material. The company is currently evaluating its legal options to challenge the NCLAT's decision at the Supreme Court.

Paradeep Phosphates has announced that the transcript of its post-results conference call with analysts and investors is now available on the company's official website. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, following the conference call held on May 13, 2026, to discuss the company's financial results for the fourth quarter and fiscal year 2026.

Conference Call Transcript and Recording Details

The transcript of the discussion held on May 13, 2026, has been uploaded to the official website of Paradeep Phosphates, complementing the audio recording that was made available earlier. Investors and analysts can access the transcript to review the management's commentary on the quarterly and annual performance in detail. The disclosure was signed by Company Secretary Sachin Patil on May 18, 2026.

Key Management Representatives

The conference call featured presentations from senior management team members, including the MD & CEO, Joint MD and COO, President & Chief Commercial Officer, and the Chief Financial Officer. They provided insights into the operational and financial highlights of the period.