Pokarna Limited received a show cause notice from the Commissioner of Central Tax on August 21, 2026, proposing a total demand of ₹4.70 crore. The notice, issued under Section 74 of the Central Goods and Services Tax Act, 2017, alleges short payments of tax on specific supplies and declarations.

The Office of the Commissioner of Central Tax, Guntur Commissionerate, Central GST Sub-Commissionerate, Nellore, issued the notice bearing O.R. No. 44/2026-GST. The proposed demand comprises a GST liability of ₹2.35 crore and an equivalent penalty of ₹2.35 crore, along with applicable interest. These amounts represent proposed demands and are not final liabilities.

Allegations in the Notice

The show cause notice cites two primary grounds for the proposed demand:

• Short payment of GST of ₹16.41 lakh due to alleged non-fulfilment of conditions under Notification No. 40/2017-Central Tax (Rate) and Notification No. 41/2017-Integrated Tax (Rate) regarding supplies to merchant exporters at concessional rates.
• Short payment of GST of ₹2.19 crore due to alleged short declaration of the quantity of black granite blocks dispatched during FY2020-21 and FY2021-22.

Company Response

Pokarna Limited stated that it is examining the allegations based on advice from its legal advisors. The company intends to contest the proposed demand by submitting a detailed response within the prescribed timeline. Management noted that there is no immediate impact on the financials, operations, or other activities of the company at this stage. The final financial implication will depend on the outcome of the adjudication proceedings.

Pokarna reported a sharp rise in consolidated net profit to ₹4,259.92 lakh for the quarter ended June 30, 2026 (Q1FY26), up from ₹2,829.44 lakh in the corresponding period last year. The Board of Directors approved the unaudited standalone and consolidated financial results on August 7, 2026, alongside the appointment of Mr. Om Jaiswal as Company Secretary and Compliance Officer, effective August 8, 2026. The strong bottom-line growth was primarily driven by robust revenue performance in the Quartz Surfaces segment, which contributed significantly to the overall margin expansion.

Financial Performance Overview

The company's total revenue reached ₹19,570.53 lakh in Q1FY26, compared to ₹17,373.92 lakh in Q1FY25. Revenue from operations stood at ₹18,941.48 lakh, reflecting healthy top-line momentum. The following table details the key financial metrics for the quarter:

Segment-wise Contribution

The Quartz Surfaces segment remained the primary growth engine, generating ₹17,668.78 lakh in revenue, up from ₹16,609.01 lakh in the year-ago quarter. This segment contributed ₹7,109.07 lakh to the pre-tax, pre-depreciation segment result, demonstrating strong operational leverage. In contrast, the Granites segment reported revenue of ₹1,272.70 lakh and a segment result of ₹318.45 lakh, recovering from a loss of ₹79.23 lakh in the previous year's quarter.

Standalone Results Turn Profitable

While the consolidated entity posted strong profits, the standalone results revealed a significant turnaround for the parent company. Pokarna Limited reported a standalone profit after tax of ₹95.36 lakh for Q1FY26, marking a return to profitability from a loss of ₹225.76 lakh in Q1FY25. Standalone revenue from operations rose sharply to ₹1,278.13 lakh from ₹504.02 lakh in the prior year quarter, indicating improved utilization or sales volume in the standalone granite business.

Key Managerial Personnel Changes

The Board noted the resignation of Mrs. Pratima Khandu Gulankar as Company Secretary and Compliance Officer, effective August 7, 2026, citing personal career opportunities. Pursuant to the recommendation of the Nomination and Remuneration Committee, Mr. Om Jaiswal (Membership No. ACS A81379) was appointed to the role with effect from August 8, 2026. Mr. Jaiswal holds a Bachelor of Commerce degree from the University of Delhi and has practical exposure in corporate secretarial and compliance functions under the Companies Act, 2013, and SEBI regulations.

What the Numbers Show

The 50.5% increase in consolidated net profit outpaced the 10.8% growth in revenue from operations, indicating improved operating efficiency. The EBITDA margin expanded to 35.88% from 32.12% in the year-ago quarter, supported by higher contribution margins in the Quartz Surfaces business. Additionally, finance costs decreased slightly to ₹516.75 lakh from ₹768.79 lakh in the prior year quarter, further aiding bottom-line expansion. The statutory auditors, M/s. S. Daga & Co., Chartered Accountants, issued an unqualified limited review report on the financial statements.