Deepak fertilisers & petrochemicals Corporation Limited has informed stock exchanges about an income tax demand order received by its wholly-owned subsidiary Mahadhan AgriTech Limited (MAL). The regulatory disclosure was made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Income Tax Demand Details

The Deputy Commissioner of Income Tax, Central Circle, issued a demand order worth ₹19.58 crores under section 170A of the Income Tax Act, 1961, for Assessment Year 2022-23. The order was received by MAL on December 25, 2025, at approximately 5:32 PM.

Nature of Disallowances

The Assessing Officer made certain disallowances while passing the order under section 170A of the Income Tax Act, 1961. However, the company noted that these disallowances were previously deleted by the Income Tax Appellate Tribunal (ITAT) in earlier years and are supported by other judicial pronouncements.

Company's Response Strategy

MAL has taken a legal view that the demand is not tenable and is liable to be set aside in appeal. The subsidiary plans to challenge the order at an appropriate forum, based on the expectation that similar disallowances have been successfully contested in the past.

Financial Impact Assessment

The company has assessed that there is no material impact on the financial, operational, or other activities of either Deepak Fertilisers and Petrochemicals Corporation Limited or its subsidiary MAL. This assessment is based on:

• Previous successful deletions of similar disallowances by ITAT
• Support from other judicial pronouncements
• The company's legal position that the demand lacks merit

Regulatory Compliance

The disclosure was made in compliance with the provisions of Regulation 30 read with sub-para 20, Para A, Part A, Schedule III of the SEBI Listing Regulations. The information has also been made available on the company's website at www.dfpcl.com for stakeholder access.

Deepak Fertilisers & Petrochemicals has disclosed receipt of an additional income tax demand order worth ₹21.51 crores from the Central Processing Centre, Bengaluru, bringing the total tax demands across the group to ₹128.17 crores. The latest demand pertains to Assessment Year 2024-25 and was received on December 24, 2025.

Latest Demand Order Details

The parent company received the demand order under Section 143(1) of the Income Tax Act, 1961:

The CPC increased the company's income by ₹10.34 crores without specifying details in the order and did not provide credit for TDS and TCS amounting to ₹14.33 crores and ₹2.80 lakhs respectively.

Previous Subsidiary Demands

Earlier, the company's material subsidiaries had received income tax demands totaling ₹106.66 crores:

Deepak Mining Solutions Limited (DMSL)

Mahadhan AgriTech Limited (MAL)

Company's Position and Expected Impact

Deepak Fertilisers maintains that no financial impact is expected from the latest demand, similar to its stance on previous subsidiary demands. The company stated that assessment proceedings for AY 2024-25 are in progress and will be completed by March 31, 2026. No contraventions are alleged in the order.

The company plans to seek clarification for differences in business income and will take necessary action during the ongoing assessment proceedings. The issues primarily relate to non-recognition of tax credits and TDS/TCS amounts rather than substantive tax violations.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, regarding demand orders from income tax authorities. The company has made the information available on its website at www.dfpcl.com as per regulatory requirements.