Deepak builders & engineers India Limited has disclosed receiving a GST summons from tax authorities, marking a significant regulatory development for the construction company. The disclosure was made to stock exchanges under SEBI regulations on February 2, 2026.

GST Summons Details

The company received a summons issued under Section 70 of the Central Goods and Service Tax Act, 2017, through email dated January 30, 2026. The summons requires the company to appear before a GST Officer on February 3, 2026, at 11:30 AM at the Directorate General of GST Intelligence, Ludhiana Zonal Unit.

Nature of Inquiry

The summons relates to an inquiry concerning the availment and utilisation of ineligible Input Tax Credit (ITC) under the Central Goods and Service Tax Act, 2017. The GST officer ADITYA, designated as Senior Intelligence Officer, is conducting the investigation.

The summons specifically requires the company to:

• Give evidence and/or produce documents
• Tender statement before the investigating officer
• Appear either in person or through an authorized representative

Regulatory Compliance

The company has made the requisite disclosure under Regulation 30 of SEBI Listing Regulations, along with SEBI circular SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The disclosure was signed by Anil Kumar, Company Secretary & Compliance Officer.

Background Context

This development follows earlier search proceedings conducted by the Directorate General of Goods & Services Tax Intelligence (DGGI) in December 2025, as referenced in the company's previous communication dated December 4, 2025.

Financial Impact Assessment

The company has stated that since only a summons has been issued and the inquiry is at a preliminary stage without alleging specific violations or contraventions, it cannot determine the impact on financial operations in monetary terms at this time. The investigation remains in its initial phase, with no quantifiable financial implications disclosed.

Deepak Builders & Engineers India Limited (DBEIL) has released its financial results for the second quarter, revealing a mixed performance marked by revenue decline and improved profitability margins.

Revenue and Profit

The company reported a significant year-over-year decline in revenue for Q2. DBEIL's revenue stood at ₹451.00 crore, down from ₹1,227.56 crore in the same quarter of the previous year, representing a 63.3% decrease.

Net profit also saw a substantial drop, falling to ₹50.00 crore from ₹151.00 crore year-over-year, a decrease of 66.9%.

Improved EBITDA Margin

Despite the revenue and profit decline, DBEIL managed to improve its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin. The EBITDA margin increased to 28.28% in Q2, up from 22.71% in the corresponding quarter of the previous year. However, the absolute EBITDA decreased to ₹127.00 crore from ₹277.00 crore, reflecting the overall revenue decline.

Financial Position

As of September 30, DBEIL's balance sheet showed:

Operational Challenges

The company attributed the decline in revenue and profits to operational challenges. In a statement, DBEIL noted, "The pace of construction at running projects has been slow due to heavy rain during the months of July and August and non-availability of blocked sites." This suggests that weather conditions and project site issues significantly impacted the company's performance during the quarter.

Dividend Declaration

On a positive note, DBEIL has declared a final dividend of ₹1 per share (10% of face value) for the year ending March 31. This decision was approved by shareholders at the Annual General Meeting held on September 27.

Looking Ahead

While the Q2 results show a challenging period for Deepak Builders & Engineers, the improved EBITDA margin suggests that the company has been focusing on operational efficiency. The management's ability to enhance profitability margins in a difficult quarter may be seen as a positive sign for potential recovery as external challenges subside.

Investors and stakeholders will likely be watching closely to see how DBEIL navigates the ongoing challenges in the construction sector and whether the company can leverage its improved operational efficiency to drive growth in the coming quarters.