Arrow Greentech Ltd has informed stock exchanges about receiving a significant income tax demand order, marking a regulatory development that requires mandatory disclosure under SEBI listing regulations.

Income Tax Demand Details

The company disclosed receiving a demand order for outstanding liabilities worth ₹6.03 crores from the Commissioner of Income Tax, Mumbai. The demand pertains to assessment year 2017-18 and follows the dismissal of the company's appeal with the Commissioner of Income Tax (Appeal).

Nature of Tax Dispute

The demand order stems from disallowances of certain expenditure and deductions claimed by Arrow Greentech under various provisions of the Income Tax Act. The company's initial appeal to the Commissioner of Income Tax (Appeal) was dismissed, leading to the current demand for payment of outstanding liabilities.

Company's Response and Impact Assessment

Arrow Greentech has stated that the demand notice will not materially impact its financials, operations, or other business activities. The company has taken proactive steps to address the matter through legal channels.

The company's response includes:

• Filing an appeal with the Income Tax Appellate Tribunal (ITAT) against the order
• Submitting a letter to the Commissioner of Income Tax requesting to hold recovery proceedings
• Seeking suspension of recovery until the outcome of ITAT proceedings

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary Poonam Bansal signed the regulatory filing, ensuring compliance with mandatory disclosure requirements for listed entities facing significant tax demands.

Arrow Greentech has announced strong financial results for the second quarter of fiscal year 2026, demonstrating significant growth across key metrics.

Financial Highlights

• Revenue: The company delivered revenue of Rs. 611.00 million in Q2 FY26, marking a substantial 47% quarter-on-quarter growth from Rs. 416.00 million in Q1 FY26.
• EBITDA: Q2 FY26 EBITDA stood at Rs. 208.00 million, up 46.5% from Rs. 142.00 million in the previous quarter.
• Profit After Tax (PAT): PAT for Q2 FY26 reached Rs. 157.00 million, a 44.2% increase from Rs. 109.00 million in Q1 FY26.
• PAT Margin: The company maintained a PAT margin of 25.3% in Q2 FY26.

Segment Performance

Arrow Greentech's growth was driven by strong performance across its business segments:

• Green Products: This segment generated revenue of Rs. 123.00 million.
• High-Tech Segment: Contributed significantly with revenue of Rs. 488.00 million.

Management Commentary

Shilpan P. Patel, Chairman and Managing Director of Arrow Greentech, stated, "Our Q2 FY26 results reflect the strong operational momentum across our diversified business segments. The substantial growth in revenue and profitability underscores the effectiveness of our strategic initiatives and the growing demand for our products."

Balance Sheet Strength

As of September 30, 2025, Arrow Greentech reported:

Future Outlook

While specific forward-looking statements were not provided, the company's strong Q2 performance and healthy balance sheet position it well for continued growth. Arrow Greentech's focus on green products and high-tech segments aligns with growing market trends towards sustainability and technological advancement.

Investors and stakeholders are encouraged to review the detailed financial statements available on the company's website for a comprehensive understanding of Arrow Greentech's financial position and performance.

Note: All financial figures are in Indian Rupees (INR) unless otherwise stated.