Panasonic Energy India Co. Ltd. reported a 70.4% decline in net profit to ₹348.68 lakh for the financial year ended March 31, 2026, compared to ₹1,177.31 lakh in the previous year. Revenue from operations increased slightly to ₹27,003.18 lakh from ₹26,841.47 lakh in FY25. The company’s statutory auditors, BSR & Co, issued a modified report regarding the company's inability to estimate provisions for the Battery Waste Management Rules, 2022.

Financial Performance

The company recorded a total income of ₹27,372.18 lakh for FY26, up from ₹27,221.80 lakh in the prior year. Total expenses increased to ₹26,399.67 lakh from ₹25,452.27 lakh. Profit before tax for the year stood at ₹632.74 lakh, a significant decrease from ₹1,769.53 lakh in FY25. The decline in profitability was impacted by exceptional items amounting to ₹339.77 lakh, primarily due to the incremental impact of new labour codes.

For the quarter ended March 31, 2026, the company reported a profit after tax of ₹172.85 lakh, compared to ₹117.30 lakh in the corresponding quarter of the previous year. Revenue for the quarter was ₹7,165.94 lakh.

Dividend Declaration

The Board of Directors has recommended a dividend of 19.50%, or ₹1.95 per equity share, on fully paid-up equity shares of ₹10 each for the financial year 2025-26. This dividend is subject to approval by shareholders at the ensuing 54th Annual General Meeting and will be paid within 30 days of the meeting.

Auditor's Observations

BSR & Co, the statutory auditors, issued a qualified opinion in their report. The auditors highlighted the company's inability to comply with the Battery Waste Management Rules, 2022, specifically regarding Extended Producer Responsibility obligations. The company has filed representations with the Ministry of Environment, Forest & Climate Change seeking revisions to targets and timelines. Pending clarification, the company has not estimated or recognized any provision for environmental compensation, resulting in the qualified opinion.

Key Financial Metrics

Panasonic Energy India Co. Ltd. has received a demand order from the Assistant Commissioner Central GST and Central Excise, Vadodara, disallowing Input Tax Credit (ITC) of Rs 31,06,999. The order, received on May 27, 2026, also imposes a penalty of Rs 3,30,363 and a late fee of Rs 150, creating a financial liability for the company under the CGST and IGST Acts.

The tax authority issued the order under Section 73(1) of the CGST Act, 2017, read with Section 20 of the IGST Act, 2017. This section pertains to the determination of tax not paid or short paid for reasons other than fraud or wilful misstatement. The authority has confirmed interest under Section 50 of the CGST Act and levied the penalty under Section 122(2)(a) of the CGST Act.

Financial Implications

The order results in a total immediate financial impact comprising the disallowed ITC, the imposed penalty, and the late fee. The company disclosed that the penalty amount stands at Rs 3,30,363, while the late fee for delayed filing of GSTR 1 is Rs 150. The demand for recovery of the late fee is made under Section 47(1) of the CGST Act and SGST Act.

The company filed the intimation with the Bombay Stock Exchange on May 28, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was signed by Srishti Jain, Company Secretary.