Grovy India Limited has filed an appeal before the Income Tax Appellate Tribunal (ITAT) against a significant tax demand, the company announced on February 27, 2026. The appeal challenges an order passed by the Commissioner of Income Tax (Appeals) under Section 250 of the Income-tax Act, 1961.

Tax Demand Details

The company faces a total tax demand of INR 119.24 Lakhs, which has been broken down into specific components. The demand structure reflects both principal tax liability and accumulated interest charges over the assessment period.

Appeal Process and Timeline

The appeal was filed against an order dated January 13, 2026, passed by the Commissioner of Income Tax (Appeals). This follows the company's earlier intimation dated January 14, 2026, indicating that the company had previously disclosed developments related to this tax matter. The Income Tax Appellate Tribunal will now review the case and determine the merits of Grovy India's challenge to the tax demand.

Regulatory Compliance

The disclosure was made in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company specifically referenced compliance with Schedule III of these regulations, which governs the disclosure of material events and information that could impact investor decisions. Company Secretary and Compliance Officer Simran Rajput signed the disclosure document, ensuring proper corporate governance protocols were followed.

Grovy India Limited has delivered robust financial performance in the third quarter of FY2025-26, showcasing strong growth across all key financial metrics. The real estate development and consultancy company, established in 1985 and specializing in South Delhi's premium property market, reported significant year-on-year improvements in revenue, profitability, and asset base.

Financial Performance Highlights

The company's Q3FY26 results demonstrate consistent operational excellence with substantial growth across core financial parameters:

Earnings per share showed remarkable quarterly improvement, increasing by 42.90% from ₹0.28 in Q2FY26 to ₹0.40 in Q3FY26, reflecting enhanced profitability and operational efficiency.

Business Model and Market Position

Grovy India operates through three distinct business models tailored to different client requirements. The Outright Model involves complete property purchase and construction for resale. The Collaboration Model functions as a joint venture where Grovy acquires partial land ownership in exchange for construction services. The Turnkey Model provides end-to-end construction services where property owners engage Grovy for complete design and build solutions.

The company has established itself as a creator of 'Boutique Properties' in South Delhi's premium real estate market, focusing on areas including Greater Kailash, Hauz Khas, East of Kailash, Anand Niketan, and Neeti Bagh. With over 40 years of combined experience, the company maintains teams of skilled engineers, architects, planners, and designers.

Project Portfolio and Development Pipeline

Grovy India currently manages an extensive project portfolio across South Delhi's most sought-after locations:

The company has successfully completed multiple projects totaling 67,000 sq. ft across East of Kailash and Greater Kailash locations, demonstrating consistent project execution capabilities.

Leadership Commentary and Strategic Outlook

Chairman PC Jalan expressed satisfaction with the quarterly performance, stating that the results reflect "healthy operational performance" and demonstrate the effectiveness of the company's business strategy and execution focus. He emphasized the company's commitment to enhancing long-term shareholder value through sustainable growth, prudent capital management, and continued emphasis on operational efficiency.

The company is actively evaluating capital raising options, having received in-principle board approval to explore fund-raising of up to ₹40 crore. This initiative focuses on maintaining prudent capital structure while optimizing funding costs and aligning with market conditions and growth objectives.

Future Growth Initiatives

Grovy India has commenced construction of two projects in collaboration with Golden Growth Fund (GGF) and intends to evaluate opportunities for increasing collaborative projects in coming months. The company plans to leverage its execution expertise, established market presence, and collaborative development model to drive scalable and sustainable growth in the premium South Delhi real estate segment.