Vedant Fashions Limited has received an Order-in-Appeal dated May 13, 2026, passed by the Office of the Additional Commissioner (Appeal), Kolkata Appeal-I, CGST & CX, Kolkata, rejecting the company's appeal against the Order-in-Original (OIO) dated February 02, 2025. The order was received by the company via email on May 13, 2026, at around 02:43 P.M. (IST). The appellate authority has upheld the OIO in its entirety without any modification, confirming the demand and penalty previously raised against the company.

Background and Nature of the Dispute

The matter was originally disclosed by the company on February 07, 2025, when it reported receipt of the Order-in-Original. The OIO pertained to the period covering FY 2017-18 to FY 2019-20 and involved allegations of non-compliance related to Input Tax Credit (ITC) under GST laws. The company had subsequently filed an appeal before the appellate authority under Section 107 of the CGST Act, 2017, which has now been rejected through the Order-in-Appeal dated May 13, 2026.

Details of the Confirmed Demand

The Order-in-Appeal has confirmed the following demands without any modification:

The demand pertains to recovery of proportionate ITC attributable to exempted, nil-rated, or non-GST supplies for the period FY 2017-18 to FY 2019-20. In addition to the ITC recovery and penalty, interest as applicable on the ITC amount has also been confirmed by the appellate authority.

Company's Response and Next Steps

Vedant Fashions has stated that, except for the amounts mentioned above, there is no other impact on the financial or operational activities of the company. The company is currently evaluating the Order-in-Appeal and has indicated it will take necessary steps, including seeking appropriate relief, within the prescribed timelines. The intimation was submitted under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, and was signed by Navin Pareek, Company Secretary and Compliance Officer.

Vedant Fashions Limited, the company behind the Manyavar brand, announced its audited financial results for the quarter and financial year ended March 31, 2026, following a Board of Directors meeting held on May 08, 2026. The statutory auditors, M/s B S R & Co. LLP, Chartered Accountants (FRN: 101248W/W-100022), issued an unmodified opinion on the financial results, which were reviewed by the Audit Committee and approved by the Board at their respective meetings on the same date. In compliance with Regulation 47 read with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company published newspaper advertisements of its audited financial results on May 9, 2026 in the following publications:

Annual Financial Performance

For the financial year ended March 31, 2026, Vedant Fashions reported revenue from operations of INR 14,354.79 million, compared to INR 13,864.83 million in the previous financial year. Total income, including other income of INR 935.18 million, stood at INR 15,289.97 million for FY26, against INR 14,716.40 million in FY25. The following table summarises the key income statement metrics for the full year:

Earnings per equity share (face value of INR 1 each) on a basic basis stood at INR 15.46 for FY26, compared to INR 15.99 in FY25. Diluted EPS was INR 15.45 for FY26 versus INR 15.98 in FY25.

Quarterly Performance — Q4 FY26

For the three months ended March 31, 2026, revenue from operations was INR 3,994.27 million, compared to INR 3,674.36 million in the corresponding quarter of the previous year and INR 4,917.09 million in the quarter ended December 31, 2025. Net profit for Q4 FY26 stood at INR 1,143.03 million, against INR 1,011.05 million in Q4 FY25. The table below presents the key quarterly metrics:

Note: EPS figures are not annualised for the quarterly periods.

Balance Sheet Highlights

As at March 31, 2026, total assets stood at INR 28,527.17 million, compared to INR 27,465.75 million as at March 31, 2025. Total equity increased to INR 19,643.36 million from INR 17,863.10 million in the prior year. Key balance sheet figures are presented below:

Cash Flow Summary

For the year ended March 31, 2026, net cash generated from operating activities was INR 4,814.44 million, compared to INR 3,886.01 million in the previous year. Net cash used in investing activities was INR 1,020.05 million, while net cash used in financing activities amounted to INR 3,855.87 million. Cash and cash equivalents at the end of the year stood at INR 110.63 million, against INR 172.11 million at the beginning of the year. The following table summarises the cash flow position:

Dividend Recommendation and Other Key Disclosures

The Board of Directors recommended a final dividend of ₹7.75 per fully paid-up equity share of ₹1 each for the financial year ended March 31, 2026, subject to shareholder approval at the ensuing Annual General Meeting. During the year ended March 31, 2026, 29,094 equity shares were issued to employees against stock options exercised by them. The company operates in a single reportable segment — Branded Fashion apparel and accessories — and does not have any investments in subsidiary, associate, or joint venture entities for the year ended March 31, 2026, making consolidated financial results not applicable. Additionally, the company recognised an incremental impact of Rs. 16.17 millions under employee benefits expense for the three months ended December 31, 2025, pertaining to the four Labour Codes notified by the Government of India on November 21, 2025.

Analyst Conference Call Audio Recording

Pursuant to Regulation 30 and Regulation 46 read with Part A of Schedule III of the SEBI Listing Regulations, Vedant Fashions informed the stock exchanges that the audio recording of the Conference Call with Analysts and Investors, held on Monday, May 11, 2026, in connection with the financial results for the quarter and financial year ended March 31, 2026, has been made available on the company's website. The recording can be accessed at the company's investor relations page. The disclosure was signed by Navin Pareek, Company Secretary and Compliance Officer (ICSI Memb. No.: F10672).