Deepak Fertilisers & Petrochemicals has disclosed that its wholly owned subsidiary, Mahadhan Agri Tech Limited (MAL), has received a Goods and Services Tax (GST) demand order from the Joint Commissioner of State Tax, Maharashtra. The order, which pertains to the period from July 2017 to March 2018, raises financial implications for the subsidiary.

Demand Order Details

The GST demand order, as revealed in the company's regulatory filing, comprises the following components:

Reason for the Demand

The demand order cites the inadmissibility of credit claimed in GSTR3B compared to the credit quantum reflected on the GST portal. This discrepancy has led to the demand raised by the tax authorities.

Company's Stance

Deepak Fertilisers & Petrochemicals has stated that there is no material impact on the financials or operations of either the parent company or its subsidiary, MAL. The company further elaborated that MAL believes the demand is not tenable and plans to challenge the order at an appropriate forum.

Timeline and Next Steps

1. The appeal order was received by the company via email on 31st October 2025.
2. MAL has taken a legal view that the demand is not sustainable and may be set aside upon appeal.
3. The company has expressed its intention to challenge the order at an appropriate forum.

While the GST demand order represents a significant amount, Deepak Fertilisers & Petrochemicals' stance and immediate disclosure to the stock exchanges demonstrate the company's commitment to transparency and its belief in the strength of its position. Investors and market watchers may keep a close eye on the developments as the company proceeds with its challenge to the order.

As this situation unfolds, it could have implications for other companies in the sector, potentially highlighting the complexities of GST compliance and credit claims in the fertilizer and petrochemical industries.

Deepak Fertilisers & Petrochemicals Corporation Limited (DFPCL) has taken a significant step towards sustainable energy by investing ₹13.18 crore in renewable energy projects. The company has signed agreements with Sunsure Energy for both solar and wind power initiatives, aiming to enhance its green energy portfolio.

Investment Breakdown

The total investment of ₹13.18 crore is divided into two key projects:

Project Details

Solar Power Investment

• DFPCL has entered into a Share Subscription and Shareholders Agreement (SSSA) with Sunsure Energy Private Limited and Murli Solar Energy Private Limited (MSEPL).
• The company will invest ₹4,78,44,000 in one or more tranches.
• This investment will secure a minimum 26% stake in MSEPL's equity share capital.
• The project aims to facilitate solar power captive consumption for DFPCL.

Wind Power Investment

• A similar SSSA has been signed with Sunsure Energy Private Limited and Sunsure Solarpark Fifty One Private Limited (SSFOPL).
• DFPCL will invest ₹8,40,00,000 in one or more tranches.
• This will also result in a minimum 26% stake in SSFOPL's equity share capital.
• The investment is targeted at wind power captive consumption.

Strategic Importance

These investments align with DFPCL's commitment to sustainable practices and reducing its carbon footprint. By securing stakes in both solar and wind power projects, the company is diversifying its energy sources and moving towards more environmentally friendly operations.

Regulatory Compliance

The agreements comply with the provisions of the Electricity Act, 2003, ensuring that Deepak Fertilisers & Petrochemicals adheres to all necessary regulations in its pursuit of renewable energy adoption.

Market Impact

This move by DFPCL demonstrates the company's proactive approach to addressing environmental concerns and energy security. It also positions Deepak Fertilisers & Petrochemicals as a forward-thinking player in the industry, potentially enhancing its appeal to environmentally conscious investors and stakeholders.

Future Outlook

As the renewable energy sector continues to grow, DFPCL's investments in solar and wind power projects may serve as a blueprint for other companies in the fertilizer and petrochemical industries looking to transition towards more sustainable energy sources.

The completion of these projects is expected to significantly boost Deepak Fertilisers & Petrochemicals' green energy capabilities, potentially leading to reduced operational costs and a smaller environmental impact in the long term.