Deepak Fertilisers & Petrochemicals Corporation Limited has informed stock exchanges about receiving a penalty order worth ₹5.28 crores from tax authorities. The company disclosed this development under Regulation 30 of SEBI listing regulations on December 31, 2025.

Penalty Order Details

The Deputy Commissioner of State Tax, Nodal-3, Pune issued the order on December 30, 2025, which the company received via email at 17:37 hours the same day. The comprehensive demand breakdown is structured as follows:

The order pertains to FY 2021-22 and carries reference number ZD271225174770A dated December 30, 2025.

Nature of Tax Dispute

The tax department has disallowed input tax credit claimed by the company, citing two primary reasons:

• Non-reflection in GSTR2A
• Ineligible credit claims

However, Deepak Fertilisers maintains that no violation or contravention has been committed on their part. The company has categorically stated that the department's action lacks merit.

Company's Response Strategy

The company has taken a strong legal position regarding the penalty order. Key aspects of their response include:

• Legal assessment concludes the demand is not tenable
• Plans to challenge the order at appropriate legal forums
• Confidence that the order is liable to be set aside in appeal

Financial Impact Assessment

Despite the substantial penalty amount, Deepak Fertilisers has assessed the situation and concluded there will be no material impact on the company's operations. The management's impact analysis reveals:

The company's confidence in challenging the order successfully appears to underpin this assessment of minimal business disruption.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 read with sub-para 20, Para A, Part A, Schedule III of SEBI Listing Regulations, 2015. The company has also made this information available on their official website at www.dfpcl.com , ensuring complete transparency with stakeholders.

The disclosure was signed by Rabindra Purohit, VP – Legal, Compliance & Company Secretary, demonstrating the company's commitment to timely regulatory compliance despite the challenging circumstances of the penalty order.

Deepak Fertilisers & Petrochemicals Corporation shares staged a notable recovery in Wednesday's trading session, climbing 5.1% to ₹1,270.20 after experiencing declines over the previous two sessions. The rebound signals renewed buying interest following the recent pullback in the stock.

Trading Performance and Market Dynamics

The stock exhibited significant intraday volatility during the session, with trading activity spanning a wide range. Key trading metrics for the day included:

Long-term Performance Analysis

While the stock has shown muted movement over the past year with gains of approximately 7%, the long-term performance trajectory remains substantially positive. The company has delivered impressive wealth creation for long-term investors despite the recent consolidation phase.

Valuation Metrics

The stock appears reasonably priced based on current valuation parameters, suggesting balanced pricing relative to its fundamentals:

Technical Analysis Overview

From a technical perspective, momentum indicators present a mixed picture. The 14-day Relative Strength Index (RSI) stands at 34.7, positioning close to the oversold zone and indicating that selling pressure may be nearing exhaustion. However, the broader trend remains cautious as the stock trades below five out of eight key simple moving averages, maintaining positions above only short-term averages while remaining below major long-term averages ranging from 30-day to 200-day SMA.

Financial Performance

The company demonstrated stable growth in its latest quarterly results for September 2025. Financial highlights include:

Institutional Holdings

Shareholding data reflects mixed institutional activity during the September 2025 quarter. Foreign portfolio investors (FPIs) slightly reduced their stake from 11.25% to 10.94%, while mutual funds increased their holdings marginally from 8.97% to 9.03%, indicating selective confidence among domestic institutional investors in the company's prospects.