Kamdhenu Limited has received a GST demand order of ₹63.40 lakhs from the Office of the Additional Commissioner of CGST, Alwar Commissionerate, as disclosed in a regulatory filing under SEBI Regulation 30 on January 2, 2026.

GST Demand Details

The demand order pertains to allegedly wrongly availed Input Tax Credit (ITC) for the period spanning from FY 2018-19 to FY 2021-22. The order was received by the company on January 1, 2026.

Nature of Alleged Violations

The GST demand order has been issued under the relevant provisions of the CGST Act, 2017, RGST Act, 2017, IGST Act, 2017 and relevant rules. The order specifically relates to:

• Wrongly availing input tax credit
• Other alleged contraventions of provisions of the GST Acts and Rules

The total demand includes both the principal amount of ₹63.40 lakhs towards the allegedly wrongly availed ITC and an equal amount of ₹63.40 lakhs as applicable interest and penalty.

Company's Response and Impact Assessment

Kamdhenu Limited has stated that it believes it has sufficient factual and legal basis to reasonably support its position in this matter. The company does not anticipate any material impact on its financial position, operations, or other activities arising from the said order at this stage.

Legal Remedy Plans

The company has announced its intention to take necessary legal remedy against the GST demand order. Kamdhenu plans to file an appeal before the Appellate Authority (Commissioner Appellate), GST, Alwar to contest the demand.

This disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with stakeholders regarding regulatory developments that could potentially impact the company.

Kamdhenu Limited , India's largest manufacturer and seller of branded TMT Bars in the retail segment, has reported robust financial results for the first half of fiscal year 2026, along with key corporate decisions.

Financial Highlights for H1FY26

• Revenue from operations reached ₹387.00 crore
• Profit before tax (PBT) margins expanded to 14.00% from 10.90% in the previous year, a 310 basis points improvement
• Profit before tax grew 33% to ₹54.00 crore
• Profit after tax increased 28% to ₹40.00 crore
• Royalty income witnessed robust growth of 27% year-on-year to ₹286.00 crore, including a one-time royalty payment

Operational Performance

• Revenue from own facilities stood at ₹301.00 crore with sales volumes of 61,400 MT
• Franchise volumes rose 8% to 18 lakh MT
• The company operates through a franchise business model with over 10,000 dealers and over 500 distributors across India

Q2 FY2026 Results

Kamdhenu Limited reported a revenue from operations of ₹190.14 crore for the quarter ended September 30, 2025, compared to ₹195.78 crore in the previous quarter, marking a slight decrease of 2.88%. The company's net profit after tax stood at ₹19.80 crore, down 7.00% from ₹21.29 crore in the prior quarter.

Market Challenges

Chairman and Managing Director Satish Kumar Agarwal noted that some key operating regions experienced abnormal weather conditions and extended rainfall during the quarter, temporarily impacting volumes and revenue growth. Average selling prices were softer due to weaker steel prices, affecting realizations.

Corporate Actions and Fund Allocation

The Board of Directors approved modifications to the fund allocation for preferential issue proceeds. This decision came in light of some warrant holders not exercising their conversion option:

1. Out of 27.50 lakh convertible warrants allotted, 14.97 lakh warrants lapsed, resulting in the forfeiture of ₹13.21 crore.

2. The company received ₹57.44 crore against the initially targeted ₹97.08 crore from the preferential issue.

3. The Board approved reallocating ₹11.00 crore, originally designated for office premises construction, to other objectives of the preferential issue.

4. The timeline for fund utilization has been extended from December 31, 2025, to December 31, 2026, subject to shareholder approval through postal ballot.

Future Outlook

Despite temporary challenges in Q2, Kamdhenu Limited's overall performance in H1FY26 demonstrates strong growth and profitability. The modifications in fund allocation and the extension of the utilization timeline indicate Kamdhenu's adaptive approach to changing business needs and market conditions. These strategic decisions aim to optimize capital allocation and potentially drive future growth.

As Kamdhenu Limited navigates through these financial and strategic changes, stakeholders will be closely monitoring how these decisions impact the company's performance in the coming quarters. The company's ability to maintain steady revenue and profitability in a dynamic economic environment will be crucial for its long-term success and value creation.