Raj Packaging Industries Ltd received a rejection of its Goods and Services Tax (GST) appeals for fiscal years 2022-23 and 2023-24 from the Appellate Authority in Telangana. The orders were passed on September 22, 2026, upholding demands raised by the Assistant Commissioner (ST), Aghapura Circle.

The company had filed appeals on July 19, 2025, under Section 107 of the CGST/TGST Act, 2017, to dispute the tax demands. The rejection signifies that the initial administrative review did not favor the company’s position regarding the assessed liabilities for these periods.

Management's stance on the rejection

Raj Packaging stated that it has reviewed the order and believes the Authority failed to duly consider all supporting documents, explanations, and relevant materials submitted during proceedings. The management asserts that the findings are not adequately supported by the applicable legal position.

The company maintains that the rejection does not conclusively determine the merits of the matter. It is currently exploring all available legal remedies to challenge the order before an appropriate higher appellate judicial forum.

Next steps and disclosure

Raj Packaging indicated that it will take further legal steps as advised after obtaining professional counsel. Any material developments will be disclosed to shareholders in accordance with regulatory requirements.

This intimation is filed under Regulation 30 of SEBI (LODR) Regulations, 2015, continuing previous disclosures regarding these litigation matters.

Raj Packaging Industries returned to profitability in FY26, reporting a net profit of ₹34.98 lakh compared to a net loss of ₹71.51 lakh in the previous year. The company's revenue from operations grew 7.8% year-on-year to ₹3,278.62 lakh, driven by improved operational efficiency and cost control measures.

The turnaround was supported by a significant reduction in finance costs and disciplined financial management. The Board has not declared any dividend for the financial year ended March 31, 2026.

Financial Performance

Total expenses rose by ₹91.45 lakh to ₹3,235.02 lakh, primarily due to higher cost of materials consumed (₹2,530.36 lakh vs ₹2,342.42 lakh) and other expenses (₹468.96 lakh vs ₹406.94 lakh). However, these were offset by a decrease in employee benefits expense to ₹219.39 lakh from ₹243.07 lakh and lower finance costs at ₹37.77 lakh against ₹46.49 lakh in the prior year.

What the Numbers Show

The shift from loss to profit was largely driven by a reversal in deferred tax positions rather than just operational gains. While the company generated a profit before tax of ₹47.15 lakh, the net profit after tax stood at ₹34.98 lakh. This divergence is explained by a deferred tax expense of ₹12.17 lakh in FY26, compared to a deferred tax credit of ₹23.84 lakh in FY25. In the previous year, the tax credit helped cushion the bottom line despite a significant pre-tax loss; this year, the tax charge reduced the final profit figure relative to the pre-tax result.

Balance Sheet and Cash Flow

The company reduced its total borrowings during the year. Non-current borrowings fell to ₹167.44 lakh from ₹255.30 lakh, while current borrowings decreased to ₹205.23 lakh from ₹243.25 lakh. Net debt declined to ₹372.67 lakh from ₹498.55 lakh, improving the debt-to-equity ratio to 0.29 from 0.39.

Cash generated from operations turned positive at ₹164.11 lakh, reversing a cash outflow of ₹162.07 lakh in FY25. This improvement was driven by better working capital management, including an increase in trade payables by ₹58.20 lakh. However, inventory levels rose by ₹73.08 lakh, indicating continued investment in stock.

Corporate Governance Updates

The company will hold its 39th Annual General Meeting on September 28, 2026, via video conferencing. Key agenda items include:

• Re-appointment of Ms. Neepa Kankaria as Executive Director.
• Regularization of Mr. Chandra Shekhar Agrawal as an Independent Director.
• Revision of remuneration for Ms. Neepa Kankaria from ₹2.10 lakh per month to ₹2.60 lakh per month, effective August 1, 2026.

Mr. Dayaniwas Sharma resigned as an Independent Director on September 1, 2025. Ms. Khushboo Joshi was appointed as Company Secretary and Compliance Officer on August 14, 2026, succeeding Ms. Swarupa Rani K.