Panchmahal Steel Ltd received orders from the Deputy Commissioner of State Tax, Appeal-5, Vadodara on July 13, 2026, concerning appeals filed under the CGST/SGST Act, 2017. The orders address the disallowance of Input Tax Credit during the tax period from July 1, 2017, to March 31, 2018. The company stated that there is no material impact on its financials or operations as a result of these orders.

The first order, related to Appeal ARN No. AD240324058081I dated March 14, 2024, was partially allowed. This appeal was against an order issued by the Assistant Commissioner of State Tax, Unit-46, Range-12, Division-5, Vadodara under Section 73 of the CGST/SGST Act. The total demand in this case was Rs. 79,18,336, but relief of Rs. 76,92,015 was granted, leaving a pending demand of Rs. 2,26,321.

The second order, related to Appeal ARN No. AD240722008501M dated July 22, 2022, was rejected. This appeal was against an order issued by the State Tax Officer, Unit-46, Range-12, Division-5, Vadodara under Section 74 of the CGST/SGST Act. The total demand of Rs. 31,62,776 was upheld with no relief granted to the appellant.

Financial Impact and Next Steps

The company disclosed that the orders are appealable and it is currently reviewing both orders to evaluate the next steps. The following table summarizes the financial implications of the orders:

The disclosure was submitted pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Deepak Nagar, AVP (Legal) & Company Secretary, signed the intimation on behalf of Panchmahal Steel Limited.

Panchmahal Steel Limited has reported a net loss of ₹226.34 lakh for the financial year ended March 31, 2026, a reversal from the net profit of ₹332.53 lakh recorded in the previous year. Total income for the year stood at ₹38,722.37 lakh, up from ₹38,581.40 lakh in the prior year, while total expenses increased to ₹38,648.75 lakh from ₹38,125.69 lakh. The company's basic and diluted earnings per share (EPS) for the year were reported at a loss of ₹1.19 per share, compared to a profit of ₹1.74 per share in the previous year.

For the quarter ended March 31, 2026, the company reported a net loss of ₹211.88 lakh, compared to a net loss of ₹202.93 lakh in the corresponding quarter of the previous year. Total income for the quarter rose to ₹10,648.92 lakh from ₹9,176.86 lakh in the same period last year.

Financial Performance

The Board of Directors approved the re-appointment of M/s Kiran J. Mehta & Co., Cost Accountants, as Cost Auditors for the financial year 2026-27. Additionally, M/s Keyur Patel & Co., Chartered Accountants, were re-appointed as Internal Auditors for the financial year 2026-27.