Regaal Resources Receives Rs 149 Crore Tax Recovery Notice Amid Strong Q3 Performance
Regaal Resources faces regulatory challenge with Rs 149.00 crore tax recovery notice related to SGST subsidy misuse by distributors under Bihar Industrial Promotion Policy, even as company reports strong Q3FY26 performance with 25.55% revenue growth and has made Rs 66.57 million provision for the matter.
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Regaal Resources Limited disclosed receiving a notice from the Joint Commissioner of State Tax, Kishanganj Circle for recovery of Rs 149.00 crore related to wrong SGST subsidy reimbursement, even as the company reported strong quarterly financial performance with 25.55% revenue growth.
Regulatory Notice Details
The company received a notice regarding 'Notice for recovery of wrong reimbursement' from the Office of the Joint Commissioner of State Tax, Kishanganj Circle. The notice pertains to subsidy claimed under the Bihar Industrial Promotion Policy, 2016/2011 from April 2019 to December 2024.
| Parameter: | Details |
|---|---|
| Total Recovery Amount: | Rs 149.00 crore |
| Period Covered: | April 2019 to December 2024 |
| Policy: | Bihar Industrial Promotion Policy 2016/2011 |
| Expected Recovery from Distributors: | Rs 104.64 million |
| Provision Made: | Rs 66.57 million |
According to the notice, certain distributors utilized SGST credits inappropriately for IGST payments on interstate sales, which violates Resolution No.108 dated January 20, 2020 issued by the Department of Industries.
Financial Performance Overview
Despite regulatory challenges, the company demonstrated robust operational performance in Q3FY26. Revenue from operations reached Rs 3,229.70 million, marking a substantial increase of 25.55% compared to Rs 2,572.28 million in Q3FY25.
| Metric: | Q3FY26 | Q3FY25 | YoY Growth |
|---|---|---|---|
| Revenue from Operations: | Rs 3,229.70 million | Rs 2,572.28 million | +25.55% |
| Total Income: | Rs 3,233.31 million | Rs 2,572.84 million | +25.67% |
| Net Profit: | Rs 132.46 million | Rs 142.30 million | -6.92% |
| Basic EPS: | Rs 1.27 | Rs 1.80 | -29.44% |
Impact Assessment and Recovery Strategy
Based on current assessment, the company expects to recover Rs 104.64 million from concerned distributors due to breach of agreement clauses regarding SGST credit utilization. The balance amount, including pending subsidy till December 31, 2025, totaling Rs 66.57 million has been provided as an exceptional item in Q3FY26 financial results.
Nine-Month Performance and IPO Proceeds
For the nine-month period ended December 31, 2025, the company maintained strong momentum with revenue from operations of Rs 8,895.62 million compared to Rs 6,566.23 million in the corresponding period, representing growth of 35.47%. Net profit for the nine-month period stood at Rs 390.25 million.
The company has substantially utilized its IPO proceeds raised in August 2025, with Rs 1,857.31 million deployed out of Rs 1,871.40 million allocated for debt repayment and general corporate purposes.
Legal Response Strategy
Regaal Resources stated it is examining the notice and will take appropriate legal steps, including filing replies and appeals as advised. The company disclosed this information in compliance with SEBI Listing Regulations under Regulation 30 read with Para B of Part A of Schedule III.
Historical Stock Returns for Regaal Resources
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.45% | +4.65% | +9.19% | +6.82% | -0.22% | -33.12% |
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