Munjal Showa Limited has received a Goods and Services Tax (GST) demand order worth ₹33.28 lakhs from tax authorities in Uttarakhand for the financial year 2021-22. The company disclosed this development to stock exchanges on December 23, 2025, in compliance with regulatory requirements.

GST Demand Order Details

The demand order was issued under Section 73(9) of the SGST CGST Act 2017 by the Deputy Commissioner's office in Haridwar, Uttarakhand. The order carries reference number ZD051225017995A and is dated December 22, 2025.

Nature of Violation

According to the company's disclosure, the demand order stems from a show cause notice issued under Section 73 of the SGST CGST Act 2017. The tax department alleged that no payment was made for the specified period, leading to the issuance of the demand order for FY 2021-22. The communication was received through email on December 22, 2025.

Company's Response Strategy

Munjal Showa Limited has indicated its intention to contest the GST demand order. The company stated it will challenge the order based on strong merits by filing a reply or appeal with the tax department. This suggests the company believes it has valid grounds to dispute the demand.

Impact Assessment

The company has assessed that there will be no material impact on its financial, operational, or other activities due to this GST demand order. This assessment indicates that the ₹33.28 lakh demand amount is not expected to significantly affect the company's business operations or financial performance.

Regulatory Compliance

The disclosure was made under Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company provided detailed information as required by regulatory guidelines, including the nature of the action, violation details, and potential impact assessment. Munjal Showa Limited manufactures automotive components including struts, shock absorbers, front forks, and gas springs in collaboration with Astemo Limited.

Munjal Showa Limited , a leading auto components manufacturer, has released its financial results for the quarter ended September 30, 2025, showcasing a mixed performance with revenue growth and increased expenses due to voluntary retirement scheme (VRS) costs.

Revenue and Profitability

The company reported a revenue from operations of Rs. 33,262.43 lakhs for Q2 FY2026, representing a 4.69% increase compared to Rs. 31,772.05 lakhs in the same quarter of the previous year. The profit after tax (PAT) for the quarter stood at Rs. 272.81 lakhs, a 32.89% increase from Rs. 205.37 lakhs in Q2 FY2025.

Financial Highlights

Expense Analysis

The company's total expenses for Q2 FY2026 increased to Rs. 33,205.90 lakhs, up by 1.84% from Rs. 32,606.46 lakhs in the corresponding quarter of the previous year. Notably, the expenses for the quarter were higher by Rs. 322.51 lakhs due to separation costs paid to employees opting for the Voluntary Retirement Scheme (VRS) under the existing program.

Operational Performance

Munjal Showa continues to operate as a single reportable segment in the auto components sector. The company manufactures struts, shock absorbers, front forks, and gas springs-window balancers in collaboration with Astemo Limited (formerly known as Hitachi Astemo Limited).

Management Commentary

Yogesh Chander Munjal, Managing Director of Munjal Showa Limited, stated, "Our Q2 results reflect the resilience of our business model in a challenging environment. While we have seen growth in our revenue, we have also invested in our future by implementing the VRS, which we believe will enhance our operational efficiency in the long term."

Key Appointments

The Board of Directors has approved two significant appointments:

1. Mr. Ravinder Sharma has been appointed as Company Secretary & Compliance Officer, designated as Key Managerial Personnel, effective November 14, 2025.
2. Mr. Vipin Yadav has been appointed as Vice President – Operations, bringing over 26 years of experience in manufacturing operations and leadership in the automotive sector.

Dividend Information

The Board had previously approved a final dividend of 225% (Rs. 4.5 per share with a nominal value of Rs. 2 each) for the financial year 2024-25, which was subsequently approved by shareholders at the Annual General Meeting held on August 20, 2025.

Conclusion

Munjal Showa's Q2 FY2026 results present a picture of growth tempered by strategic investments in workforce restructuring. The increase in revenue and profitability, despite higher VRS-related expenses, suggests that the company is navigating the current market conditions while positioning itself for future operational efficiencies.