Eicher Motors Limited has informed stock exchanges that its material subsidiary VE Commercial Vehicles Limited received a GST demand order worth ₹96.18 crores from tax authorities on December 29, 2025. The order was issued by the Commissioner, CGST & Central Excise, Ujjain Commissionerate, Ujjain, Madhya Pradesh.

Background of the GST Matter

This development follows an earlier disclosure made on July 10, 2025, when VE Commercial Vehicles Limited received a show cause notice (SCN) from the same tax authority. The original notice alleged contraventions of the CGST Act, 2017 provisions pertaining to Financial Year 2017-18 and involved a GST amount of ₹168.19 crores along with equivalent penalty amounts.

The subsidiary submitted its response to the show cause notice, and following adjudication proceedings, the final demand order was issued with a reduced amount.

Details of the Demand Order

The key aspects of the GST demand order are presented below:

The demand order was issued under the Central Goods and Services Tax Act, 2017, read with Madhya Pradesh Goods and Services Tax Act, 2017, and Integrated Goods and Services Tax Act, 2017. In addition to the principal demand amount, the order includes equivalent penalty amounts and applicable interest.

Company's Response and Next Steps

VE Commercial Vehicles Limited has assessed the matter in consultation with legal counsel and concluded that the demand order lacks merit. The company has indicated its intention to file an appeal before the appropriate forum within the prescribed timelines.

The subsidiary's position reflects confidence in its compliance procedures and suggests that the alleged contraventions may not have substantial grounds for enforcement.

Financial Impact Assessment

Eicher Motors Limited has explicitly stated that the GST demand order will have no impact on the financial, operational, or other activities of the company. This disclosure indicates that the parent company does not anticipate material adverse effects from this regulatory matter on its business operations or financial performance.

The reduction in demand amount from ₹168.19 crores to ₹96.18 crores suggests that the adjudication process resulted in a partial favorable outcome for the subsidiary, though the company maintains its position that the entire demand lacks merit.

HSBC has upgraded its rating on Eicher Motors to Buy, accompanied by a target price of ₹8,000.00 per share. This rating change signals the brokerage's increased confidence in the automobile manufacturer's business prospects and stock performance potential.

Analyst Rating Details

The upgrade to Buy rating represents a positive shift in HSBC's assessment of Eicher Motors. The accompanying target price provides investors with the brokerage's valuation benchmark for the stock.

Market Implications

The HSBC upgrade adds to the analyst coverage of Eicher Motors, providing market participants with updated research perspectives on the company's investment merit. Such rating changes often influence investor sentiment and can impact trading activity in the stock.

Brokerage upgrades typically reflect analysts' positive assessment of a company's financial performance, business strategy, or sector outlook. The specific target price of ₹8,000.00 provides a quantitative measure of HSBC's valuation expectations for Eicher Motors shares.