Dollar Industries Faces Rs 10.95 Lakh GST Demand, Plans Appeal

Dollar Industries , a prominent player in the Indian textile industry, has received a demand order from the Commercial Tax Officer in Tiruppur, Tamil Nadu. The order, which pertains to Input Tax Credit (ITC) availed and discrepancies claimed by the GST authority, amounts to Rs 10.95 lakhs, including GST, interest, and penalty.

Financial Impact and Company's Response

Despite the demand order, Dollar Industries has stated that there is no material impact on its financials or operations. The company plans to contest the order by filing an appeal under the GST Act before the Commissioner Appeals-GST Appellate Authority.

Key Details of the GST Demand Order

Aspect	Details
Issuing Authority	Commercial Tax Officer, Tiruppur, Tamil Nadu
Nature of Demand	ITC availed and discrepancies claimed
Financial Year	2021-22
Total Demand Amount	Rs 10.95 lakhs
Components	GST, Interest, and Penalty

Company's Financial Position

To put this demand in perspective, let's look at Dollar Industries' recent financial position:

Financial Metric	FY 2025 (in Rs crore)	YoY Change
Total Assets	1,476.10	9.62%
Current Assets	1,182.20	11.14%
Total Equity	859.80	9.70%
Current Liabilities	564.70	10.27%

Given these figures, the GST demand of Rs 10.95 lakhs (approximately Rs 0.11 crore) appears relatively small compared to the company's overall financial position. This aligns with the company's statement that the demand does not have a material impact on its financials or operations.

Conclusion

While Dollar Industries faces this GST demand, the company's strong financial position and its decision to appeal suggest that this development is unlikely to significantly affect its operations or market standing. Investors and stakeholders may want to monitor the appeal process and any potential outcomes, but the immediate financial impact appears limited based on the available information.

It's advisable for investors to consider such regulatory developments alongside broader financial metrics and industry trends when evaluating their investment decisions.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.53%	-3.14%	-4.70%	-16.45%	-35.59%	+77.45%

Dollar Industries Limited , a leading player in the Indian hosiery sector, has reported robust financial results for the second quarter of fiscal year 2026, coupled with a significant strategic announcement.

Financial Highlights

The company delivered a strong quarterly performance, with key financial metrics showing notable improvement:

Metric	Q2 FY26	YoY Growth
Operating Income	Rs. 471.00 crores	5.60%
Operating EBITDA	Rs. 603.00 million	23.30%
EBITDA Margin	12.80%	183 bps expansion
Profit After Tax (PAT)	Rs. 352.00 million	32.70%
PAT Margin	7.40%	151 bps expansion

The company's performance was driven by stable demand across key categories and significant benefits from operating leverage and ongoing cost optimization initiatives.

Strategic Merger Announcement

Dollar Industries has announced a strategic merger of nine promoter group companies into the listed entity. This restructuring aims to:

Eliminate structural overlaps
Strengthen operational control
Significantly reduce related party transactions
Bring the Dollar brand fully under Dollar Industries Limited

The merger is expected to yield both monetary and non-monetary benefits, including savings on rent, compliance costs, and employee expenses. While the exact financial impact is yet to be quantified, initial estimates suggest potential savings of Rs. 5-6 crores annually.

Operational Highlights

Thermals Performance: The thermal category showed exceptional growth with 23.50% value and 28.10% volume increase year-on-year.
Premium Segment: Force NXT, the company's premium innerwear line, sustained its growth trajectory with 6.00% value and 19.20% volume growth.
Kids' Range: The Champion brand posted remarkable gains with 109.40% value and 73.90% volume growth.
New-Age Channels: Modern trade, e-commerce, and quick-commerce together contributed 10.20% of overall revenue, with quick-commerce scaling rapidly to contribute 4.00% of total sales.

Working Capital Management

The company reported improvements in working capital management:

Receivable days reduced to 116
Inventory days moderated to 119
Payable days increased to 68
Cash conversion cycle improved to 167 days from 173 days in June

Outlook

Dollar Industries maintains its guidance of 11-12% revenue growth for the fiscal year. The company aims to sustain its EBITDA margin in the 12-13% range for FY26, with a long-term target of reaching around 14% EBITDA margin in the coming years.

The management remains focused on strengthening free cash flow, reducing debt, and continuing its premiumization strategy. With the recent strategic moves and strong financial performance, Dollar Industries appears well-positioned to navigate the competitive landscape in the Indian hosiery sector.