Grindwell Norton Limited has received a favorable order from the Customs, Excise & Service Tax Appellate Tribunal, resulting in the complete dropping of a service tax demand to nil. The company disclosed this development to stock exchanges on February 20, 2026, under Regulation 30 of SEBI listing regulations.

Tribunal Order Details

The appellate tribunal's order pertains to a previous demand from the Commissioner Central Goods and Services Tax - Thane Rural. The original order required payment of tax and penalty amounting to ₹7.98 lakhs for matters related to service tax credit against job work invoices during the 2016-17 period.

Nature of the Dispute

The case involved service tax credit against job work invoices, where the company had faced allegations of contraventions related to these credits. The appellate tribunal reviewed the matter following submissions and representations made by Grindwell Norton Limited.

Financial Impact

The company has stated that there is no material impact on its financial, operational, or other activities following this favorable outcome. The complete dropping of the demand provides relief from the original tax and penalty obligation of ₹7.98 lakhs.

Regulatory Compliance

The disclosure was made by Company Secretary Girish T. Shajani under the mandatory reporting requirements for listed companies. This development represents a positive resolution to a tax dispute that had been pending since the 2016-17 assessment period.

Grindwell Norton has announced its Q3FY26 financial results for the quarter ended December 31, 2025, showcasing strong operational performance alongside significant corporate developments. The company reported consolidated net profit of ₹955.80 million, representing a robust 12.50% increase from ₹879.68 million in the corresponding quarter last year.

Financial Performance Highlights

The company's Q3FY26 results demonstrate solid growth across key financial metrics. Consolidated revenue reached ₹7.53 billion compared to ₹7.03 billion in Q3FY25, marking a healthy 7.14% year-on-year growth. The standalone operations showed even stronger performance with net profit of ₹939.99 million versus ₹835.54 million in the previous year.

Operational Excellence and Margin Expansion

Grindwell Norton's operational efficiency continues to improve with enhanced profitability metrics. The company's ability to deliver double-digit profit growth while maintaining steady revenue expansion reflects effective cost management and operational leverage. The standalone operations particularly benefited from improved operational efficiency during the quarter.

Strategic Corporate Developments

The Board of Directors approved several strategic initiatives during their February 6, 2026 meeting. Key decisions include an investment of up to ₹1.10 crore in a Special Purpose Vehicle of Sunsure Energy Private Limited for renewable energy sourcing through an Intra-State Transmission System based solar power generation facility.

Leadership Appointment

The company appointed Mr. Girish T. Shajani as Company Secretary, Compliance Officer, and Nodal Officer effective February 8, 2026. Mr. Shajani brings over two decades of experience in corporate governance and compliance, having previously served with Saint-Gobain Group companies and Tata Consultancy Services Limited.

Segment Performance Analysis

The company's diversified business portfolio continued to deliver balanced growth across segments. The Abrasives segment generated revenue of ₹3.59 billion, while Ceramics & Plastics contributed ₹3.21 billion. Digital Services and other segments added ₹569.04 million and ₹243.45 million respectively, demonstrating the strength of the company's multi-segment approach.

Grindwell Norton's Q3FY26 performance reflects strong business fundamentals with improved profitability metrics and strategic investments in renewable energy infrastructure, positioning the company well for sustainable growth.