Panasonic Energy India Co. Ltd. announced its unaudited financial results for the quarter and nine months ended December 31, 2025. The Board of Directors approved these results in their meeting held on February 09, 2026, with the statutory auditors issuing an unmodified review report.

Financial Performance Overview

The company's financial performance for Q3 FY26 showed challenging results compared to the previous year. Revenue from operations declined while the company moved from profit to loss during the quarter.

Nine-Month Performance Analysis

For the nine-month period ended December 31, 2025, the company's performance showed a decline across key metrics compared to the corresponding period in the previous year.

Exceptional Items and Regulatory Impact

The company reported exceptional items of ₹339.77 lakhs for Q3 FY26, primarily related to the impact of new Labour Codes notified by the Government of India on November 21, 2025. This impact includes gratuity provisions of ₹324.91 lakhs and leave encashment provisions of ₹14.86 lakhs. These changes arise due to modifications in wage definitions under the consolidated labour laws.

Accounting Changes and Depreciation

During the nine-month period ended December 31, 2025, the company revised its accounting estimates for depreciation. Key changes include method change from Written Down Value to Straight Line Method, removal of residual value for certain assets, and increase in useful life of certain existing assets based on technical evaluation. These changes resulted in an increased depreciation charge of ₹45.24 lakhs for the period, with an expected annual increase of ₹55.14 lakhs.

Regulatory Compliance and Future Outlook

The company continues to monitor developments related to Battery Waste Management Rules issued by the Ministry of Environment, Forest and Climate Change. These rules regulate collection, recycling, and disposal of battery waste under Extended Producer Responsibility framework. The company has made representations regarding practical challenges and awaits further guidance from the Ministry to assess potential financial impacts.

Panasonic energy India Co. Ltd. has disclosed receiving an income tax assessment order through a regulatory filing with the Bombay Stock Exchange on December 18, 2025. The communication was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Assessment Order Details

The income tax department, specifically the office of the Deputy Commissioner of Income Tax Circle 2(1)(1), Vadodara, issued the assessment order to the company. The order was received on December 18, 2025, and pertains to violations related to tax deduction at source compliance.

Financial Demand Breakdown

The assessment order presents a comprehensive demand structure across multiple components:

Nature of Violation

The assessment order addresses delayed deduction of Tax Deducted at Source (TDS) under Section 194J of the Income Tax Act. Section 194J specifically covers payments made for professional or technical services, and the company appears to have faced compliance issues in timely deduction of such taxes.

Company's Response and Impact Assessment

Panasonic Energy India has indicated that the matter is subject to further action by the company, suggesting potential appeal or resolution procedures may be pursued. The company has provided a clear assessment of the potential impact on its business operations.

Regarding the financial and operational implications, the company has stated that the financial impact is limited to the extent of the demand and interest imposed. Importantly, the company has confirmed that there is no impact on its operational activities, indicating that normal business functions remain unaffected by this regulatory matter.

Regulatory Compliance

The disclosure was made through proper regulatory channels, with Company Secretary Srishti Jain signing the communication to the Bombay Stock Exchange. This filing demonstrates the company's commitment to maintaining transparency with stakeholders regarding material developments that could affect investor interests.