Taparia Tools Limited , a leading player in the hand tools segment, has reported strong financial results for the second quarter of fiscal year 2026, demonstrating significant growth in both revenue and profitability.

Financial Highlights

The company's performance for Q2 FY26 and H1 FY26 showcases impressive year-on-year growth:

Operational Performance

Taparia Tools has maintained its focus on the hand tools business segment, which continues to be the company's sole operational area. The robust growth in revenue indicates strong demand for the company's products and effective market strategies.

Dividend Declaration

The Board of Directors has approved an interim dividend of Rs 32.50 per equity share, representing a 325% dividend on the face value of Rs 10 per share. The record date for determining eligibility for this dividend has been set as November 19, 2025.

Financial Position

As of September 30, 2025, Taparia Tools maintains a strong financial position:

• Total Assets: Rs 45,073.16 lakhs
• Total Equity: Rs 40,817.35 lakhs
• Cash and Cash Equivalents: Rs 282.70 lakhs

Outlook

The significant growth in both revenue and profitability, coupled with a generous interim dividend, indicates that Taparia Tools is in a strong position within its market. The company's exclusive focus on the hand tools segment appears to be yielding positive results, as reflected in the financial performance.

Note: All financial figures are based on standalone unaudited results for the quarter and half-year ended September 30, 2025.

Taparia Tools Limited , a prominent tool manufacturer based in Nashik, has received a Show Cause cum Demand Notice from the Commissioner of Central GST & Central Excise, Nashik Commissionerate. The notice, dated September 12, 2025, alleges ineligible input tax credit amounting to ₹1,30,76,422.00 for the period from FY 2019-20 to FY 2023-24.

Details of the GST Notice

The notice, issued under Section 122 of the CGST Act, 2017, questions the eligibility of input tax credit claimed by Taparia Tools over a five-year period. The company, known for its wide range of hand tools and equipment, now faces scrutiny over its GST compliance.

Company's Response

In response to the notice, Taparia Tools has stated that it plans to submit an appropriate reply to the concerned authority within the prescribed timeframe. The company maintains its stance on compliance, affirming that it abides by all applicable rules and regulations under the law.

Regulatory Compliance

In line with its obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Taparia Tools has promptly disclosed this development to the BSE Limited.

Management's Statement

Vinayak Shrikrishna Datey, Company Secretary of Taparia Tools Limited, stated in the regulatory filing, "The Company will keep the Exchange informed of any material developments in this matter." This commitment to transparency underscores the company's approach to addressing the GST notice.

Potential Impact

While the alleged ineligible input tax credit of ₹1.31 crore is significant, the full impact on Taparia Tools' financials remains to be seen. The outcome will likely depend on the company's response and the subsequent assessment by the GST authorities.

Investor Considerations

Shareholders and potential investors of Taparia Tools Limited should closely monitor further developments regarding this GST notice. The resolution of this matter could have implications for the company's financial position and regulatory compliance status.

Taparia Tools Limited, with its registered office and works located at 52 & 528, MIDC Area, Satpur, Nashik - 422007, continues to operate its business as usual while addressing this regulatory challenge. The company's management has expressed confidence in its compliance practices and is prepared to engage with the tax authorities to resolve the matter.

As this situation unfolds, stakeholders are advised to stay tuned for updates from the company through official channels and regulatory filings.