Sunlite Recycling Industries has received a demand order from the Office of the Deputy Commissioner of Income Tax, Central Circle-3, Vadodara, for ₹7.11 crore. The order, dated May 28, 2026, pertains to a block period from April 1, 2018, to April 23, 2025, and was issued under Section 156 and 158BC(1)(C) read with Section 143(3) of the Income Tax Act, 1961. The company received the intimation on May 30, 2026.

Details of the Demand

The Income Tax Department issued the demand for tax on undisclosed income identified during the specified block period. The order follows a scrutiny assessment under Section 143(3) of the Income Tax Act. The company disclosed this information in a filing submitted to the National Stock Exchange of India Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Company Response and Impact

Sunlite Recycling Industries stated that it intends to file an appeal against the order. The company cited procedural lapses, a lack of opportunity for proper representation, and an excessive and unjustified determination of tax as grounds for the appeal. It further clarified that the matter will be dealt with as per due legal process and that there has been no impact on the financials of the company as of now.

Sunlite Recycling Industries has announced comprehensive expansion plans during its recent conference call, outlining strategic investments to significantly enhance its production capabilities across copper and aluminium segments. The company's management has set clear growth targets and capacity enhancement goals for the coming years.

Major Capital Investment Plans

The company has committed to a substantial capital expenditure program over the next 1.5 years. Management plans to invest between INR 30 to INR 35 crores to achieve ambitious expansion objectives across multiple product lines.

New Copper Anode Plant Development

A significant component of the expansion strategy involves establishing a new copper anode manufacturing facility. This strategic addition will diversify the company's product portfolio and strengthen its position in the copper processing sector.

Growth Projections and Utilization Targets

Management has provided clear guidance on expected growth trajectories and capacity utilization across different segments. The company anticipates steady volume growth in the near term, with accelerated expansion once new facilities become operational.

Aluminium Segment Enhancement

The aluminium segment is positioned for substantial improvement in operational efficiency. Management expects a notable increase in capacity utilization, demonstrating the company's focus on optimizing existing assets while expanding new capabilities.

The targeted utilization rate of 70% to 75% for the aluminium segment represents a significant improvement from the 56% utilization recorded in FY 2026. This enhancement reflects management's confidence in market demand and operational improvements.

Operational Timeline and Expectations

The phased approach to capacity expansion reflects careful planning and risk management. New copper rod and busbar plants are expected to commence operations in FY 2028 with an initial utilization rate of 60%, while the copper anode plant will start with 50% utilization during the same period.