Aditya Birla Fashion and Retail Limited has received a substantial tax demand order from Haryana's State Goods and Services Tax (SGST) authorities, totaling ₹13.29 crores. The company disclosed this development through a regulatory filing under Regulation 30 of the SEBI Listing Regulations on December 31, 2025.

Tax Demand Details

The Deputy Excise and Taxation Commissioner, SGST, Gurugram (East), Government of Haryana, issued the order in Form DRC-07 on December 30, 2025. The company received the order on December 31, 2025. The updated demand breakdown shows a significant increase from the previous amount:

Nature of Violations

The tax demand order arose from the conclusion of audit proceedings, with the dispute covering multiple areas of GST compliance. The violations include discrepancies related to Input Tax Credit (ITC) on imports, place of supply mismatches, outward liability declared in GSTR1 returns, and ITC reversal on credit notes. This represents a broader scope compared to the initial dispute which focused primarily on GSTR1 versus GSTR3B discrepancies.

Issuing Authority Details

The order was issued by the Office of Deputy Excise and Taxation Commissioner, SGST, Gurugram (East), Government of Haryana, located at 2nd Floor, Sansadhan Bhawan, Sector-32, Gurugram. This represents an escalation in the authority level handling the case.

Company's Response and Impact Assessment

Aditya Birla Fashion and Retail Limited maintains that the demand will have no impact on its financial position, operations, or other business activities. The company firmly believes that the tax demand is not legally tenable under current law. Management has indicated its intention to file a suitable appeal against the order before "The Appellate Authority" to contest the enhanced demand.

Regulatory Compliance

The disclosure was made in compliance with SEBI Listing Regulations and SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The filing was signed by Rajeev Agrawal, Company Secretary & Compliance Officer (ACS 18877), ensuring proper regulatory adherence and transparency with stakeholders.

Pilani Investment and Industries Corporation Limited, part of the promoter group of Aditya Birla Lifestyle Brands , has disclosed the acquisition of 2.44 crore shares representing 2.00% of the company's total share capital. The transaction was executed through open market purchases between December 23-29, 2025, as disclosed under Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Transaction Overview

The acquisition demonstrates significant promoter confidence in the company's business prospects and strategic direction. The shares were purchased at prevailing market prices over a seven-day period, representing a substantial financial commitment by the promoter group.

Shareholding Pattern Changes

The acquisition has resulted in a notable increase in the promoter group's shareholding in the company. Prior to this transaction, Pilani Investment held 4.48 crore shares, representing 3.67% of the total share capital.

Regulatory Compliance

The disclosure was made in compliance with SEBI regulations governing substantial acquisitions of shares. The company's total equity share capital stands at ₹1,220.29 crores, comprising 122.03 crore equity shares of ₹10 each, fully paid up. The acquisition strengthens the promoter group's stake while maintaining transparency through proper regulatory filings.

Market Implications

Open market purchases by promoter groups are typically viewed positively by market participants, as they signal management's confidence in the company's fundamental strength and long-term value creation potential. The timing of this substantial acquisition during the year-end period reflects the promoter group's strategic commitment to increasing their ownership in the lifestyle brands business.