Shervani Industrial Syndicate Limited has disclosed receiving a significant GST demand order from tax authorities, marking a regulatory development that the company intends to challenge through the appellate process.

Order Details and Demand Amount

The company received Order Ref. No. ZD0903261671574 dated March 24, 2026, from the Assistant Commissioner, CGST & Central Excise Division-II, Allahabad. The order follows Show Cause Notice No. 167/AE/AC/2025-26 dated August 28, 2025.

Nature of Violation

The GST demand relates to non-payment of GST under reverse charge mechanism on the purchase of FAR (Floor Area Ratio) from the Prayagraj Development Authority. The violation covers multiple financial years spanning from 2019-20 to 2022-23.

The demand includes interest charges along with equivalent penalty under Section 74 and Section 50 of the CGST Act, 2017, read with corresponding provisions of the U.P. GST Act, 2017.

Company's Response and Impact Assessment

Shervani Industrial Syndicate has expressed its intention to challenge the order through the appellate process. The company stated it is aggrieved with the order and has decided to file an appeal against the demand within the timeline prescribed under the Act.

The company has maintained that there is no impact of the demand on its financial operations and other activities, suggesting confidence in its position for the upcoming appeal proceedings.

Regulatory Compliance

The disclosure was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in compliance with various SEBI circulars including the Master Circular dated November 11, 2024, and subsequent regulatory guidelines. Company Secretary Shkawan Kumar Shukla signed the disclosure, confirming the information provided is true, correct and complete to the best of his knowledge and belief.

Shervani Industrial Syndicate Limited has announced its unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025. The Board of Directors approved these results in their meeting held on February 12, 2026, with the statutory auditors providing their review report.

Standalone Financial Performance

The company's standalone operations showed mixed results for the third quarter of FY26. Revenue from operations declined significantly to ₹539 lakhs compared to ₹1,056 lakhs in the corresponding quarter of the previous year.

Nine-Month Performance Analysis

For the nine-month period ended December 31, 2025, the company's performance reflected similar trends with reduced revenue and profitability compared to the previous year.

Segment-wise Revenue Breakdown

The company operates through multiple business segments, with real estate being the primary contributor to revenue.

Q3 FY26 Segment Performance:

• Real Estate: ₹346 lakhs
• Information Technology: ₹193 lakhs
• Total Segment Revenue: ₹539 lakhs

Nine-Month FY26 Segment Performance:

• Real Estate: ₹1,333 lakhs
• Information Technology: ₹205 lakhs
• Total Segment Revenue: ₹1,538 lakhs

Consolidated Results

The consolidated financial results, which include the parent company and its subsidiary Farco Foods Private Limited, showed revenue from operations of ₹661 lakhs for Q3 FY26 compared to ₹1,171 lakhs in Q3 FY25. Consolidated net profit for the quarter was ₹3 lakhs against ₹52 lakhs in the previous year.

Key Financial Highlights

• Paid-up Equity Share Capital: ₹259 lakhs (Face value ₹10 per share)
• Tax Expenses: ₹112 lakhs for Q3 FY26 versus ₹15 lakhs in Q3 FY25
• Employee Benefit Expenses: ₹52 lakhs for the quarter
• Finance Costs: ₹9 lakhs for Q3 FY26

The company noted that revenue recognition follows the completed contract method of accounting, while provision for income tax is made by recognizing revenue on the percentage of completion method. The results reflect the company's diversified business model across real estate development, information technology services, and other ventures including hospital and resort operations.