Kabra Extrusiontechnik Faces Rs 1.66 Crore GST Notice, Plans Legal Challenge

Kabra Extrusiontechnik Limited , a prominent player in the extrusion technology sector, has received a significant tax notice from the Goods and Service Tax (GST) authorities. The company is now gearing up for a legal challenge to contest the claims.

Key Details of the GST Notice

Aspect	Details
Issuing Authority	Office of the Deputy Commissioner, Ghaziabad, Uttar Pradesh
Legal Provision	Section 130 of the Goods and Service Tax Act, 2017
Total Amount	Rs 1,65,73,048 (Tax and Penalty)
Date of Notice Receipt	November 10, 2025

Company's Response

Kabra Extrusiontechnik has taken a proactive stance in addressing this regulatory challenge. The company has stated that it is currently examining the notice in detail. Following this examination, it plans to take appropriate legal steps to challenge the notice.

Financial Implications

The company has provided assurance to its stakeholders regarding the potential impact of this notice:

No additional financial implications beyond the stated amount of Rs 1.66 crore
No material impact expected on the company's operations or financial position

Regulatory Compliance

In line with its obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Kabra Extrusiontechnik has promptly disclosed this development to the stock exchanges. This transparency ensures that investors and market participants are kept informed of significant events that could potentially affect the company's performance.

Looking Ahead

As Kabra Extrusiontechnik prepares its legal strategy, stakeholders will be keenly watching for further developments in this case. The company's ability to successfully contest the notice could have implications not just for its own finances, but potentially for other firms in similar situations, highlighting the importance of robust tax compliance and dispute resolution mechanisms in the current business landscape.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.02%	-6.50%	-8.78%	-12.15%	-49.62%	+199.38%

Kabra Extrusiontechnik Ltd. , a leading Indian extrusion machinery manufacturer and emerging battery pack player, has reported a significant improvement in its financial performance for the quarter ended September 30.

Financial Performance

The company's financial results for Q2 show:

Operating revenues of ₹1,346.00 million, representing a 56.6% quarter-over-quarter growth
EBITDA improved to ₹90.00 million from negative ₹30.00 million in the previous quarter
Profit After Tax reached ₹3.00 million compared to a loss of ₹76.00 million in Q1

Business Segments

Kabra Extrusiontechnik operates in two business segments:

Extrusion Machinery Division
- Contributed ₹887.00 million with 48.0% QoQ growth
Geon Division (formerly Battrixx)
- Generated ₹470.00 million with 56.3% QoQ growth

Analysis

Chairman Managing Director Anand Kabra noted strong performance from both divisions but highlighted challenges in export demand due to global macroeconomic factors and rising tariffs. Domestic demand faces temporary moderation due to extended monsoon and delayed government spending.

The Geon division showed exceptional growth driven by battery pack sales, E-3Wheeler batteries, electric commercial vehicle batteries, and Battery Energy Storage Systems. Geon is expanding into the B2C market with lithium-ion inverter batteries and is currently in an investment phase to enhance R&D capabilities.

While Kabra Extrusiontechnik has shown significant improvement in its quarterly performance, the company continues to face challenges in the export market. The strong growth in both divisions and the return to profitability indicate positive momentum, but the company will need to navigate ongoing market conditions and potential challenges in its operating sectors.