Welspun Enterprises has accepted the resignation of Mr. Hardik Dhebar as the Head Finance & Investor Relations and Chief Financial Officer of its material subsidiary, Welspun Michigan Engineers Limited (WMEL). The resignation is effective July 08, 2026, and Mr. Dhebar will be relieved from his services at the close of business hours on August 14, 2026. The management changes are part of an organizational realignment aimed at strengthening the company's independent business verticals.

In a disclosure to the exchanges, the company stated that the Board approved the changes based on the recommendation of the Nomination & Remuneration Committee. Mr. Sandeep Garg, Managing Director of Welspun Enterprises, will assume interim leadership of the company’s Water vertical operations in addition to his existing roles. Mr. Saurin Patel, currently the Head of the Integrated Water Vertical and Managing Director of WMEL, will continue as the Managing Director of WMEL. He will focus on developing WMEL as a product and technology-led water solutions company.

The transition follows Mr. Dhebar's decision to pursue professional opportunities outside the Welspun Group, aligned with his long-term career objectives. In his resignation letter dated June 17, 2026, he committed to ensuring a smooth transition of his responsibilities during the notice period. The company will complete all applicable statutory and regulatory filings related to the change.

The following table summarizes the key management changes and their effective dates:

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The information has also been uploaded to the company’s website.

Welspun Sattanathapuram Nagapattinam Road Private Limited (WSNRPL), a subsidiary of welspun enterprises , has received Show Cause Notices (SCNs) from the Tamil Nadu State Goods and Service Tax (GST) Authority. The notices, dated May 20, 2026, were issued under Section 74 of the CGST Act, 2017, and were received by the subsidiary on May 21, 2026.

Details of the Show Cause Notice

The regulatory disclosure outlines that the Tamil Nadu GST Authority has issued six SCNs proposing a tax demand of ₹179,87,33,835. This amount includes the alleged tax short payment, applicable interest under Section 50 of the CGST Act, 2017, and a penalty equivalent to the tax amount. The dispute covers the financial years 2020-21 through 2025-26.

Nature of the Dispute

The issue primarily pertains to an alleged difference between the turnovers reported by WSNRPL in Form GSTR-3B and the reporting done by the client in Form GSTR-7, which is the statement of GST TDS deduction. The company explained that the client deducted and reported GST TDS for the complete project in Tamil Nadu, without considering that the project spans both the State of Tamil Nadu and the Union Territory of Puducherry. Consequently, the GST TDS ought to have been deducted and reported separately for the two states.

Company Response and Impact

Welspun Enterprises stated that WSNRPL has a strong case on merits, as it has rightly discharged tax on services provided in Tamil Nadu. The management noted that a similar issue was involved in an earlier show cause notice, wherein the demand was dropped or adjudicated by the jurisdictional tax authorities. WSNRPL plans to file a detailed reply against the SCN before the appropriate authority after conducting necessary reconciliation. The company affirmed that it does not foresee any material impact on the financial, operational, or other activities of the company or its subsidiary arising from these notices.