WeP Solutions Receives Favorable CESTAT Order, Service Tax Demand of Rs 4,25,14,108 Set Aside

wep solutions Limited has received a favorable order from the Customs, Central Excise and Service Tax Appellate Tribunal (CESTAT), Bangalore, setting aside a service tax demand pertaining to managed printing services. The communication was received by the company on 13th May 2026, and the development was disclosed to BSE Ltd on 14th May 2026 pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

CESTAT Order Details

The appellate order relates to a service tax demand for the period April 2011 to June 2012 under the category of Supply of Tangible Goods. The original order, which had been challenged before the CESTAT, pertained to demand of service tax on managed printing services. The tribunal has now set aside the entire demand in its ruling. The key details of the order are summarised below:

Parameter:	Details
Authority:	Customs, Excise & Service Tax Appellate Tribunal, Bangalore
Demand Period:	April 2011 to June 2012
Category:	Supply of Tangible Goods
Service Tax Demand Set Aside:	Rs 4,25,14,108
Additional Relief:	Applicable interest and penalty also set aside
Date of Receipt of Order:	13th May 2026
Nature of Original Dispute:	Service tax on managed printing services

Financial and Operational Impact

WeP Solutions has clarified that the favorable CESTAT order carries no impact on the financial, operational, or other activities of the company. The amount that was the subject matter of the appellate order had been reflected as a contingent liability in the company's financials. With the demand now set aside in its entirety—including applicable interest and penalty—the contingent liability stands resolved in the company's favour.

The disclosure was signed by Ankita Karnani, Company Secretary and Compliance Officer of WeP Solutions Limited, and submitted to the Department of Corporate Services, BSE Ltd.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-3.73%	-4.73%	+6.50%	-1.32%	-19.90%	+44.74%

WeP Solutions Limited's Board of Directors convened on Saturday, 9th May 2026, in Bengaluru, to consider and approve the Annual Audited Standalone Financial Results for the quarter and financial year ended March 31, 2026. The results were reviewed by the Audit Committee and audited by statutory auditors M/s. Guru & Jana LLP, Chartered Accountants, Bangalore (FRN: 006826S/S000214), who issued an unmodified audit opinion. The board meeting commenced at 11:30 A.M. (IST) and concluded at 3:30 P.M. (IST).

Key Corporate Announcements

Alongside the financial results, the board approved two additional significant resolutions during the meeting.

Dividend Recommendation: A final dividend of ₹0.50 (5%) per equity share of face value ₹10 each, fully paid, for the financial year 2025-26, subject to deduction of tax if any and approval of shareholders at the ensuing Annual General Meeting.
ESOP Grant: Grant of 2,12,000 options at an exercise price of ₹10 (Rupees Ten Only) per share to eligible employees under the Employee Stock Option Plan 2023.

Financial Performance Overview

The following table presents the key financial highlights for the quarter and year ended March 31, 2026, compared to corresponding prior periods (₹ in Lakhs except EPS data):

Metric:	Q4 FY26 (Mar 31, 2026) Audited	Q3 FY26 (Dec 31, 2025) Unaudited	Q4 FY25 (Mar 31, 2025) Audited	FY26 (Mar 31, 2026) Audited	FY25 (Mar 31, 2025) Audited
Net Sales/Income from Operations:	1,768.39	1,555.67	1,810.50	6,782.32	6,470.55
Other Operating Income:	2.43	3.24	2.88	8.76	8.73
Total Revenue from Operations:	1,768.82	1,559.91	1,813.38	6,791.08	6,479.28
Other Income:	49.81	33.41	54.91	169.37	159.92
Total Income (net):	1,818.63	1,593.32	1,868.29	6,960.45	6,639.20
Cost of Material Consumed:	98.78	101.38	451.82	473.77	482.94
Purchases of Stock-in-Trade:	336.74	425.63	306.22	1,621.35	2,008.94
Changes in Inventories:	187.19	62.09	(110.51)	271.30	(246.95)
Employee Benefits Expense:	307.40	302.49	267.56	1,155.40	1,051.14
Finance Costs:	38.70	59.77	34.83	205.10	133.84
Depreciation and Amortisation:	303.41	305.33	288.16	1,201.99	967.84
Other Expenses:	400.21	432.35	493.38	1,770.75	1,672.43
Total Expenses:	1,652.43	1,689.04	1,731.46	6,699.66	6,070.18
Profit Before Tax:	166.20	4.28	136.83	260.79	569.02
Current Tax:	19.91	7.57	(24.93)	72.22	104.17
Deferred Tax:	27.37	(5.79)	72.23	(17.32)	62.31
Net Profit/(Loss):	118.92	2.50	89.53	205.89	402.54
Other Comprehensive Income (net of tax):	7.79	0.35	(6.41)	12.88	(3.27)
Total Comprehensive Income:	126.71	2.85	83.12	218.77	399.27
Basic EPS (₹, not annualised):	0.32	0.01	0.24	0.55	1.10
Diluted EPS (₹, not annualised):	0.32	0.01	0.24	0.55	1.09

For FY26, total revenue from operations stood at ₹6,791.08 lakhs, compared to ₹6,479.28 lakhs in FY25. Total expenses for FY26 were ₹6,699.66 lakhs against ₹6,070.18 lakhs in FY25. Net profit for FY26 was ₹205.89 lakhs, compared to ₹402.54 lakhs in FY25. The paid-up equity share capital as at March 31, 2026, stood at ₹3,682.97 lakhs (face value of ₹10 per share).

Segment-wise Performance

WeP Solutions operates through two business segments — Partner Business and Enterprise Business. The segment-wise revenue, results, and capital employed are presented below (₹ in Lakhs):

Segment:	Q4 FY26 (Mar 31, 2026) Audited	Q3 FY26 (Dec 31, 2025) Unaudited	Q4 FY25 (Mar 31, 2025) Audited	FY26 (Mar 31, 2026) Audited	FY25 (Mar 31, 2025) Audited
Segment Revenue
Partner Business:	488.02	423.89	493.33	1,771.73	1,664.03
Enterprise Business:	1,280.80	1,236.02	1,320.05	5,019.35	4,815.25
Segment Results
Partner Business:	(4.87)	(72.21)	(50.02)	(194.47)	(250.91)
Enterprise Business:	189.08	110.34	187.47	541.92	828.56
Total Segment Results:	184.21	38.13	137.45	347.45	577.65
Less: Net Interest:	18.01	33.85	0.62	86.66	8.53
Total Profit Before Tax:	166.20	4.28	136.83	260.79	569.02
Capital Employed
Partner Business:	1,064.23	1,197.66	1,343.05	1,064.23	1,343.05
Enterprise Business:	6,441.91	6,788.51	6,402.01	6,441.91	6,402.01
Total Capital Employed:	7,506.14	7,986.17	7,745.06	7,506.14	7,745.06

The Enterprise Business remained the dominant revenue contributor, generating ₹5,019.35 lakhs in FY26 compared to ₹4,815.25 lakhs in FY25. The Partner Business reported a segment loss of ₹194.47 lakhs in FY26, an improvement from a loss of ₹250.91 lakhs in FY25.

Balance Sheet Highlights

The Statement of Assets and Liabilities as at March 31, 2026, reflects the following position (₹ in Lakhs):

Particulars:	As at March 31, 2026 Audited	As at March 31, 2025 Audited
Property, Plant and Equipment:	3,182.30	3,363.88
Capital Work-in-Progress:	415.40	312.62
Other Intangible Assets:	0.50	3.50
Other Financial Assets (Non-Current):	418.58	641.28
Deferred Tax Assets (net):	371.50	354.17
Non-Current Tax Assets:	69.40	43.07
Other Non-Current Assets:	37.27	45.81
Total Non-Current Assets:	4,495.04	4,794.33
Inventories:	1,128.84	1,444.23
Trade Receivables:	1,891.27	1,892.57
Cash and Cash Equivalents:	18.12	103.15
Bank Balances (other than above):	819.80	1,456.34
Other Financial Assets (Current):	94.52	66.02
Other Current Assets:	505.59	571.71
Total Current Assets:	4,458.26	5,564.62
Total Assets:	8,953.29	10,358.95
Equity Share Capital:	3,682.97	3,680.63
Reserves & Surplus:	2,678.06	2,609.92
Total Equity:	6,361.03	6,290.55
Borrowings (Non-Current):	590.39	496.81
Lease Liabilities (Non-Current):	28.29	22.25
Provisions (Non-Current):	34.24	101.55
Other Non-Current Liabilities:	0.17	—
Total Non-Current Liabilities:	702.94	621.08
Borrowings (Current):	554.73	957.70
Lease Liabilities (Current):	24.00	56.91
Trade Payables – MSME:	23.84	19.89
Trade Payables – Others:	154.72	201.64
Other Current Liabilities:	403.94	1,612.59
Other Current Liabilities (b):	590.50	491.80
Provisions (Current):	137.59	106.79
Total Current Liabilities:	1,889.33	3,447.32
Total Equity and Liabilities:	8,953.29	10,358.95

Cash Flow Summary

The Statement of Cash Flows for the year ended March 31, 2026, is summarised below (₹ in Lakhs):

Cash Flow Activity:	FY26 (Mar 31, 2026) Audited	FY25 (Mar 31, 2025) Audited
Profit/(Loss) before Income Tax:	260.80	569.02
Depreciation & Amortisation:	1,201.99	967.84
Provision for Doubtful Debts:	112.84	109.55
Employee Share Based Payment Expense:	33.39	31.18
Loss/(Profit) on Sale of Fixed Assets:	40.29	13.72
Net Exchange Differences:	5.82	(1.12)
Interest Income:	(130.82)	(128.04)
Interest Expense:	205.10	133.84
(Increase)/Decrease in Inventories:	315.50	(285.49)
(Increase)/Decrease in Trade Receivables:	(111.54)	(258.39)
(Increase)/Decrease in Financial & Other Assets:	287.19	(528.50)
(Increase)/(Decrease) in Trade Payables & Other Liabilities:	(1,125.99)	868.38
Income Taxes Paid:	(123.34)	111.83
Net Cash from Operating Activities:	971.23	1,380.47
Purchase of Property, Plant & Equipment (incl. CWIP):	(1,057.00)	(1,673.14)
Purchase of Intangible Assets:	—	(6.00)
Proceeds from Sale of Fixed Assets:	3.93	13.96
Interest Income (Investing):	130.82	128.04
Investment in Bank Deposits (>3 months):	(613.55)	(1,329.41)
Redemption/Maturity of Bank Deposits (>3 months):	1,281.86	594.18
Net Cash from Investing Activities:	(263.82)	(2,272.37)
Proceeds from Issue of Shares:	2.34	20.54
Interest Paid:	(205.10)	(133.84)
Proceeds/(Repayment) of Borrowings:	(502.47)	(43.07)
Repayment of Lease Obligations:	(104.37)	(93.15)
Proceeds of Term Loan:	500.00	450.00
Repayment of Term Loan:	(306.92)	(129.13)
Dividend Payment:	(184.03)	(183.00)
Amount Deposited towards Unpaid Dividend:	(1.89)	(2.35)
Net Cash from Financing Activities:	(802.44)	(114.03)
Net Increase/(Decrease) in Cash & Equivalents:	(85.03)	(1,005.93)
Cash & Equivalents at Beginning of Year:	103.15	1,109.09
Cash & Equivalents at End of Period:	18.12	103.15

Net cash inflow from operating activities was ₹971.23 lakhs in FY26, compared to ₹1,380.47 lakhs in FY25. Cash and cash equivalents at the end of FY26 stood at ₹18.12 lakhs, compared to ₹103.15 lakhs at the end of FY25. The financial results are available on the BSE website at www.bseindia.com and on the company's website at www.wepsol.com .