SRF Limited has secured a significant reduction in its outstanding income tax liability for Assessment Year 2022-23, with the Income Tax Department lowering the demand from ₹327.44 crore to ₹9.46 crore via a rectification order. The development resolves a major portion of a litigation risk previously flagged by the company, confirming that the initial massive demand was driven by a technical error rather than substantive tax disputes. SRF Limited is now reviewing the remaining liability to determine appropriate legal recourse.

The update follows an earlier disclosure dated April 7, 2026, filed under Schedule III, Part A, Para B, Clause 8 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. In that filing, SRF Limited had informed investors that the Income Tax Department’s final assessment order under Section 143(3) of the Income Tax Act, 1961 contained a technical error, leading to the inflated demand. The company subsequently filed a rectification application to reverse the erroneous amount.

Key Details of the Rectification Order

The rectification order explicitly reaffirms the company’s position that the original demand of ₹327.44 crore was not based on valid taxable income but on a computational or procedural mistake within the assessment framework. This acknowledgment by the tax authorities significantly de-risks the company’s financial outlook for this specific assessment year.

Next Steps and Legal Recourse

While the reduction from ₹327.44 crore to ₹9.46 crore represents a substantial mitigation of potential cash outflows, SRF Limited has not yet settled the remaining balance. Management stated it is currently analyzing the rectification order to decide on suitable legal recourse for the residual ₹9.46 crore demand. The company will provide further updates as per regulatory requirements if material developments occur.

What the Numbers Show

The dramatic drop in the tax demand highlights the importance of procedural accuracy in tax assessments. The fact that the Income Tax Department accepted the rectification application indicates that the core dispute was administrative rather than interpretative. For investors, this reduces uncertainty around potential large-scale cash outlays related to this specific assessment year, although the remaining ₹9.46 crore liability still requires monitoring for potential further appeals or settlements.

SRF Ltd. witnessed a notable block trade on the National Stock Exchange (NSE), with approximately 2,65,197 shares transacted at a price of ₹2659.20 per share, aggregating to a total deal value of ₹70.52 crores.

Block Trade Details

The transaction represents a sizeable single-deal activity on the NSE. The key parameters of the block trade are summarised below:

Block trades are large-volume transactions typically executed outside the open market order book to minimise price impact, and are commonly associated with institutional investors such as mutual funds, foreign portfolio investors, or other large market participants.