Bhageria Industries Limited has received a significant GST demand order from tax authorities, with total implications of ₹2.92 crores across penalties and tax demands. The company disclosed this development to stock exchanges on December 30, 2025, pursuant to regulatory requirements under SEBI listing obligations.

GST Demand Order Details

The Additional Commissioner, CGST & Central Excise, Palghar Commissionerate issued the order addressing multiple Input Tax Credit (ITC) violations across different financial years. The order encompasses both penalty confirmations and tax demand confirmations spanning from FY 2018-19 to FY 2024-25.

Penalty Confirmations

The GST authorities have confirmed substantial penalties under Section 74(1) of the CGST Act, 2017:

These penalties relate to the availment of Input Tax Credit of Compensation Cess during the specified periods, indicating discrepancies identified by the tax authorities in the company's GST compliance.

Tax Demand Confirmations

Beyond penalties, the order confirms additional tax demands arising from excess ITC availment:

These demands include interest under Section 50 of the CGST Act and penalties equivalent to the tax amount under Section 122(2)(b) of the CGST Act, 2017.

Company's Response and Impact Assessment

Bhageria Industries has indicated its intention to challenge the order through proper legal channels. The company plans to file an appeal before the Commissioner (Appeals) against the said order before the due date. Management has assessed that there will be no impact on financial operations or other business activities due to this order.

The company received the order on December 30, 2025, and has promptly disclosed the matter to both NSE and BSE as required under regulatory compliance frameworks. This disclosure demonstrates the company's commitment to transparency in material developments affecting stakeholder interests.

Bhageria Industries Limited , a leading specialty chemicals manufacturer, has reported robust financial results for the second quarter of fiscal year 2026, demonstrating significant growth across key metrics. The company also announced its entry into the plasticizers segment, marking a strategic expansion of its product portfolio.

Financial Performance

For Q2 FY26, Bhageria Industries posted impressive year-on-year growth:

The company's performance for the first half of FY26 was equally strong:

Operational Highlights

• Plant utilization stands at 95-97% across facilities.
• Export markets remain robust, with healthy demand from Southeast Asia and Europe.
• The company maintains a strong focus on efficiency, integration, and sustainability.

Strategic Expansion

Bhageria Industries announced two significant developments:

1. Entry into Plasticizers Segment: The company plans to commence commercial production of plasticizers by December 2025 at its Tarapur facility. This move targets applications in PVC cables, flooring, and automotive components.

2. H-ACID Capacity Expansion: The company is increasing its H-ACID capacity from 400 to 500 metric tons per month at Tarapur, with an investment of ₹5 crore. This expansion is expected to generate additional annual revenue of ₹50-75 crore at current prices.

Future Outlook

Bhageria Industries remains confident in maintaining its growth trajectory through continued product innovation, capacity expansion, and export diversification. The company is well-positioned to capitalize on the structural shift in the Indian chemical industry, driven by global supply chain realignment and strong domestic demand.

Management Commentary

Suresh Bhageria, Chairman of Bhageria Industries, stated, "Our consistent performance this year underscores our resilient execution, efficient cost management, and proactive investment in capacity and new product segments. We have delivered another quarter of broad-based growth supported by healthy demand, robust exports, and improved product mix."

The company's focus on efficiency, integration, and sustainability continues to enhance both scale and profitability. With a solid balance sheet and a clear strategic roadmap, Bhageria Industries is committed to building a stronger, more diversified business that consistently delivers growth and value to its stakeholders.

As the chemical industry in India undergoes a structural shift, Bhageria Industries appears well-positioned to capture emerging opportunities through its expanding specialty portfolio and commitment to sustainable practices.