Everest Industries Limited has received substantial relief from State Goods and Service Tax (SGST) authorities in Madhya Pradesh regarding a tax dispute that originated from a Show Cause Notice dated May 30, 2025. The company informed stock exchanges on December 30, 2025, about the favorable outcome following their response to the notice from the Deputy Commissioner of State Goods and Service Tax, Jabalpur Division, Madhya Pradesh.

Massive Reduction in Tax Demand

The SGST authorities in Jabalpur issued an order on December 29, 2025, at 2:51 p.m. (IST), providing exceptional relief to the company. The order resulted in a dramatic reduction of ₹8,26,07,908 from the original demand under the State GST provisions.

Complete Tax Demand Waiver

The most significant aspect of this order is the complete waiver of the tax demand component of ₹2,58,31,923. The company will only need to pay a minimal amount of ₹51,786, comprising interest of ₹1,786 and penalty of ₹50,000, representing a relief of over 99% from the original demand.

Company's Compliance Response

Everest Industries has confirmed that it will pay the residual amounts as per the order. Unlike previous cases where the company indicated intentions to contest remaining demands, the company appears to accept this minimal liability given the substantial relief received.

Regulatory Timeline and Background

This development follows the company's earlier intimation dated May 30, 2025, when it first informed exchanges about receiving the Show Cause Notice from the Madhya Pradesh SGST authorities. The company had responded to the SCN and participated in hearings before receiving the final favorable order. This regulatory disclosure was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The order was signed by Company Secretary & Compliance Officer Amruta Avasare on December 30, 2025, demonstrating the company's prompt compliance with disclosure requirements. This substantial relief showcases the effectiveness of the company's defense strategy in GST matters across different jurisdictions.

Everest Industries Limited , a key player in the building solutions sector, has experienced a significant setback as Crisil Ratings downgraded its credit ratings on November 25, 2025. This development reflects the company's ongoing financial challenges and slower-than-anticipated business recovery.

Credit Rating Downgrade Details

The total bank loan facilities rated amount to Rs. 440.00 crores.

Reasons for the Downgrade

The downgrade primarily stems from:

1. Weaker than expected recovery in business operations
2. Significant impact on the company's profitability

Financial Performance Analysis

An examination of Everest Industries' balance sheet reveals some interesting trends:

While the company has shown growth in total assets and current assets, the increase in liabilities and modest growth in equity suggest potential financial strain.

Implications for Investors and Stakeholders

1. Increased Borrowing Costs: The downgrade may lead to higher interest rates on future loans, potentially impacting the company's financial flexibility.
2. Investor Confidence: This rating action could affect investor sentiment, possibly leading to increased scrutiny of the company's financial health and recovery strategies.
3. Business Operations: The downgrade reflects challenges in business recovery, which may require management to reassess and potentially restructure certain aspects of operations.

Looking Ahead

Everest Industries will need to focus on improving its business performance and profitability to regain its previous credit standing. Stakeholders should monitor the company's upcoming financial reports and any strategic initiatives announced to address these challenges.

As the building solutions sector navigates through various market pressures, Everest Industries' ability to adapt and improve its financial metrics will be crucial in determining its future credit outlook and market position.