Pitti Engineering Limited , a key player in the Indian engineering sector, has witnessed a significant change in its shareholding structure. The company's promoter group, led by Sharad B Pitti and persons acting in concert, has reduced their collective stake in the company.

Shareholding Changes

The promoter group's shareholding has decreased from 51.11% to 49.33%, following the sale of 6,72,176 shares between December 11-12, 2024. This reduction represents a notable shift in the company's ownership structure.

Key Details of the Transaction

• Akshay S Pitti, a member of the promoter group, sold his entire stake of 6,72,176 shares, which accounted for 1.79% of the total equity.
• The transaction was conducted through open market sales over two days.
• The company's total equity share capital remains unchanged at 3,76,53,588 shares.

Promoter Group Composition

The promoter group of Pitti Engineering Limited includes:

• Sharad B Pitti
• Akshay S Pitti
• Madhuri Pitti
• Sharad B Pitti HUF
• Pitti Electrical Equipment Private Limited
• Catalyst Trustee Private Limited

This change in shareholding pattern may be of interest to investors and market analysts tracking Pitti Engineering Limited. It's important to note that such changes can sometimes indicate shifts in company strategy or individual investment decisions within the promoter group.

Pitti Engineering has received a positive order from the Commissioner of Income Tax (Appeals) -12, Hyderabad, marking a significant victory in its ongoing tax dispute. The ruling, dated August 19, 2025, overturns a previous tax demand of ₹923.08 lakhs (approximately ₹9.23 crore) imposed by the Assessing Officer for the Assessment Year 2017-18.

Background of the Tax Dispute

The tax controversy originated from an order issued on December 29, 2019, under section 143(3) by the Assessing Officer. This order sought to include certain unsecured loans received by Pitti Engineering as taxable income. In response, the company filed an appeal before the Commissioner of Income Tax (Appeals) on January 21, 2020, challenging the assessment.

Favorable Ruling Details

The recent order, downloaded from the Income Tax portal on August 20, 2025, rules in favor of Pitti Engineering. Key points of the ruling include:

• The Commissioner of Income Tax (Appeals) has deleted the additions made by the Assessing Officer.
• The disputed demand of ₹923.08 lakhs, which had been disclosed in the company's financial statements since FY2019-20, is now effectively nullified.

Impact on Financial Reporting

Pitti Engineering had been reporting the disputed amount in its Standalone and Consolidated Financial Statements since the fiscal year 2019-20. The favorable ruling is likely to have a positive impact on the company's financial position, potentially allowing for the reversal of any provisions made for this tax liability.

Market Implications

The resolution of this tax dispute removes a significant contingent liability from Pitti Engineering's books. This development may be viewed positively by investors and could potentially influence the company's market valuation.

Compliance and Disclosure

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Pitti Engineering promptly informed the stock exchanges about this material development. The disclosure was made in accordance with the SEBI circular dated November 11, 2024, demonstrating the company's commitment to transparent communication with its stakeholders.

As the markets digest this information, investors and analysts will likely be keen to understand the full financial implications of this favorable tax ruling on Pitti Engineering's future performance and financial health.