Schneider Electric Infrastructure Limited secured a reduction in its Goods and Services Tax (GST) penalty following a rectification order from the Joint Commissioner, Division-I Vadodara, Vadodara-I, CBIC. The order, received on June 2, 2026, lowered the penalty by ₹8,328,696 concerning the alleged wrong availment of ineligible Input Tax Credit for the financial year 2019–20. This adjustment provides financial relief while the disputed tax and interest liabilities remain upheld.

The development follows a previous intimation regarding Order-In-Appeal No. VAD-CGST-001-APP-JC559-2025-26, which had confirmed the tax position. The latest rectification order, accompanied by Form GST APL – 04, specifically addresses the penalty component. The company confirmed that the tax amount and interest charges remain unchanged from the figures established in the earlier appeal order.

The financial implications of the order are detailed below. The table illustrates the breakdown of the tax, interest, and penalty across IGST, CGST, and SGST components.

The violation cited by the authorities pertains to the wrong availment of ineligible Input Tax Credit during the specified financial year. Despite the reduction in the penalty, the aggregate demand for tax and interest totals ₹18,552,184. Schneider Electric Infrastructure Limited disclosed that there is no material impact on its financials, operations, or other activities as a result of this order.

Schneider Electric Infrastructure Limited reported a 20.7% decline in net profit to ₹213 crore for the financial year ended March 31, 2026, despite a 9.6% increase in revenue to ₹2,891 crore. Profitability was impacted by exceptional items totaling ₹31.8 crore year-on-year, primarily due to a gratuity liability adjustment of ₹14.2 crore following new Labour code implementation and a reversal of ₹17.6 crore in the previous year related to tax litigation. Orders grew 27.4% to ₹3,430 crore, and the backlog increased 50.1% to ₹1,911 crore. The company has disclosed the investor presentation on its audited financial results for the fourth quarter and financial year ended March 31, 2026, approved by the Board on May 28, 2026.

FY26 Financial Performance

For the full year FY26, the company recorded a net profit of ₹213 crore, down from ₹268 crore in the previous year. Revenue from operations rose to ₹2,891 crore from ₹2,637 crore. Profit Before Tax (PBT) before exceptional items stood at ₹306 crore, a decrease of 8.1% year-on-year. The company achieved a 27.4% growth in orders, reaching ₹3,430 crore, and reported a backlog of ₹1,911 crore as of March 31, 2026, an increase of 50.1%.

Q4FY26 Performance

In the fourth quarter of FY26, net profit fell 59.8% to ₹22 crore compared to the corresponding period of the previous year. Revenue remained relatively flat at ₹590 crore, a marginal increase of 0.5% year-on-year. PBT before exceptional items declined significantly by 66.0% to ₹25 crore, attributed to volatility in commodity prices and an adverse revenue mix. Orders for the quarter grew 1.4% to ₹772 crore. Exceptional items for the quarter included a gain of ₹10.4 crore from the actualization of Labour code impact.

Management Commentary and Strategic Outlook

Mr. Deepak Sharma, Zone President- Greater India, Schneider Electric, and Board Director, highlighted the company's resilient performance despite a dynamic operating environment, noting continued traction in Services and steady contributions from Cloud & Service Provider, Power & Grid, and Mobility sectors. Mr. Udai Singh, MD & CEO, emphasized the robustness of the business model and disciplined execution. The Board met on May 28, 2026, and approved the re-appointment of Mr. Udai Singh as Managing Director and CEO for a term of three years effective from September 15, 2026, subject to shareholder approval. The company also highlighted its ESG achievements, including an 83% reduction in Scope 1+2 CO2 emissions and 100% of electricity being sourced from renewables.

Business Update and Future Strategy

During the earnings conference call held on May 29, 2026, management addressed the flat revenue growth in Q4FY26, citing delivery deferrals by customers impacted by geopolitical uncertainties and commodity price volatility. Approximately 10% to 12% of orders were shifted for delivery to subsequent quarters. Mr. Omkar Prasad, CFO, noted that gross margins were impacted by a 1.5% to 1.6% drop due to commodity costs and revenue mix, though the company maintains a strong backlog.

Mr. Udai Singh outlined strategic growth drivers, including the energy transition, data centers, and manufacturing. He highlighted the company's new offerings, such as the Trihal dry-type transformer for data centers and metros, and the One Digital Grid solution for DISCOMs. Regarding the Battery Energy Storage System (BESS) segment, the company focuses on system design and integration, sourcing batteries from partners while manufacturing AC and DC power equipment in-house. The management indicated that data centers currently contribute about 10% to 12% of the order backlog, a share expected to increase.