Ramco Industries Limited has informed stock exchanges about receiving a penalty order from the Income Tax Department, disclosing the development under regulatory compliance requirements. The company received the order on March 26, 2026, at 14:41 PM from the Assessment Unit of the Income Tax Department.

Penalty Details

The penalty order pertains to Assessment Year 2017-18 and involves significant financial implications for the company. The following table summarizes the key aspects of the penalty:

Nature of Violation

The penalty has been imposed under Section 270A of the Income Tax Act. The violation stems from a difference in interpretation concerning the disallowance made under Section 14A of the Income Tax Act. This section typically deals with expenditure incurred in relation to income that does not form part of total income.

Regulatory Compliance

The disclosure has been made in compliance with Regulation 30 of SEBI LODR, specifically under sub-para 20 of para A of Part A of Schedule III, which mandates disclosure of imposition of fine or penalty. The company has provided comprehensive details about the authority, nature of action, violation details, and financial impact as required under the regulatory framework.

Company's Response

Ramco Industries has indicated its intention to file an appeal against this penalty order. The company appears to contest the interpretation that led to the penalty imposition, suggesting disagreement with the tax authority's assessment regarding Section 14A disallowance provisions.

Financial Impact

The penalty amount of ₹23.79 lakhs represents the direct monetary impact on the company. This amount reflects 200% of the underlying tax amount of ₹11.89 lakhs, as prescribed under the penalty provisions of Section 270A of the Income Tax Act.

Ramco Industries Limited announced its unaudited consolidated financial results for the third quarter ended December 31, 2025, demonstrating strong operational performance across all business segments. The Chennai-based diversified company reported robust revenue growth and enhanced profitability, with consolidated results showing significant improvement over the corresponding quarter of the previous year.

Consolidated Financial Performance

The company delivered impressive consolidated results for Q3FY26, with revenue from operations reaching ₹388.63 crores compared to ₹343.68 crores in the corresponding quarter of the previous year. This represents a growth of 13.1% year-on-year, reflecting the company's strong market position and operational efficiency.

Standalone Results Overview

On a standalone basis, the company reported revenue from operations of ₹305.29 crores in Q3FY26 compared to ₹272.17 crores in Q3FY25, marking growth of 12.2%. Standalone net profit after tax reached ₹16.59 crores versus ₹12.93 crores in the corresponding quarter last year, representing an increase of 28.3%.

Nine-Month Performance Analysis

For the nine-month period ended December 31, 2025, the consolidated revenue from operations stood at ₹1,280.94 crores compared to ₹1,240.01 crores in the previous year, showing growth of 3.3%. Consolidated net profit after tax for the nine-month period reached ₹87.87 crores compared to ₹65.06 crores, representing an increase of 35.1%.

On a standalone basis, nine-month revenue from operations was ₹1,036.84 crores compared to ₹1,045.70 crores in the previous year, showing a marginal decline of 0.8%. However, standalone net profit after tax improved to ₹85.10 crores from ₹74.94 crores, marking growth of 13.5%.

Associates Performance Impact

A significant contributor to the consolidated performance was the share of net profit after tax from associates accounted for using the equity method. This contributed ₹90.38 crores in Q3FY26 compared to ₹73.27 crores in Q3FY25, representing an increase of 23.3%. For the nine-month period, associates contributed ₹130.76 crores compared to ₹80.12 crores in the previous year.

Capital Structure and Equity

The company maintained a stable capital structure with paid-up equity share capital of ₹8.66 crores, consisting of shares of Re.1 each. Other equity stood at ₹4,224.01 crores, reflecting the company's strong financial position and accumulated reserves.

Sequential Performance Trends

Comparing Q3FY26 with the previous quarter (Q2FY26), consolidated revenue from operations increased from ₹365.48 crores to ₹388.63 crores, showing sequential growth of 6.3%. However, consolidated net profit after tax decreased from ₹27.36 crores in Q2FY26 to ₹21.69 crores in Q3FY26.

On a standalone basis, revenue increased from ₹272.67 crores in Q2FY26 to ₹305.29 crores in Q3FY26, while net profit after tax decreased from ₹35.93 crores to ₹16.59 crores during the same period.