Alok industries has informed stock exchanges about receiving a penalty order from GST authorities regarding alleged tax credit violations. The company disclosed this development under regulatory compliance requirements on February 10, 2026.

Penalty Details and Allegations

The Assistant Commissioner, CGST & Central Excise, Daman issued the penalty order dated February 10, 2026, imposing a financial penalty on the company. The order alleges incorrect availment of input tax credit by Alok Industries Limited.

Legal Framework and Provisions

The penalty has been imposed under Section 74(1) and other provisions of the Central Goods and Services Tax Act, 2017. The order also references applicable provisions of the Union Territory Goods and Services Tax Act, 2017 and the Integrated Goods and Services Tax Act, 2017.

Company's Response and Next Steps

Alok Industries Limited has announced its intention to file an appeal against the penalty order. The company received intimation of the order via email on February 10, 2026, at 3:47 p.m. (IST).

Financial and Operational Impact

The company has clarified the implications of the penalty order on its business operations and financial position.

The disclosure was made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary and Compliance Officer Anshul Kumar Jain signed the regulatory filing, ensuring proper corporate governance protocols were followed.

Alok Industries Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, showing continued losses despite some operational improvements. The textile company's performance reflects ongoing challenges in the industry while demonstrating resilience in certain operational metrics with notable improvement in consolidated loss figures.

Consolidated Financial Performance

The company's consolidated financial results for Q3FY26 showed improvement in loss management compared to the previous year:

On a consolidated basis, the company's performance included contributions from its subsidiaries and joint ventures. The consolidated revenue from operations reached ₹858.24 crores for the quarter, maintaining stability compared to the corresponding period.

Standalone Financial Performance Overview

The company's standalone financial results for Q3FY26 revealed mixed performance indicators across key metrics:

Nine-Month Performance Analysis

For the nine-month period ended December 31, 2025, Alok Industries demonstrated improved loss management compared to the previous year:

Expense Management and Operational Efficiency

The company demonstrated improved cost management across several expense categories. Finance costs decreased to ₹149.36 crores in Q3FY26 from ₹154.76 crores in Q3FY25. Power and fuel expenses were reduced to ₹165.09 crores from ₹177.25 crores year-on-year. Employee benefits expenses declined to ₹111.13 crores from ₹118.76 crores in the corresponding quarter.

Exceptional Items and Special Circumstances

The company recognized exceptional items worth ₹30.75 crores for the nine-month period, primarily related to insurance claims from tornado damage to spinning plants at Silvassa. The company received ₹25 crores from insurance and recognized exceptional gains from the sale of damaged assets.

Regulatory and Compliance Updates

The financial results were prepared in accordance with Indian Accounting Standards and reviewed by statutory auditors Chaturvedi & Shah LLP. The results were approved by the Board of Directors at their meeting held on January 15, 2026, which commenced at 2:15 p.m. and concluded at 4:30 p.m. The company operates primarily in the textiles segment, which constitutes its reportable business segment under Ind AS 108.