Neelamalai Agro Industries Limited has informed the stock exchanges about receiving an assessment order from the Income Tax Department regarding disallowance of certain exemption claims. The company made this disclosure under Regulation 30 of SEBI LODR on February 24, 2026.

Income Tax Assessment Details

The Assessment Unit of the Income Tax Department issued an order under Section 143(3) of the Income Tax Act, 1961, which the company received on February 23, 2026. The order specifically relates to the disallowance of exemption claimed on the sale of agricultural land.

Financial Implications

The company has disclosed expected financial implications of Rs.4.97 crores, excluding applicable interest and penalty, if any. This amount represents the potential tax liability arising from the disallowance of the agricultural land sale exemption worth Rs.17.70 crores.

Company's Response Strategy

Neelamalai Agro Industries has outlined its plan to address the assessment order. The company stated it will consult with tax consultants and advisors to file an appeal with the appropriate Income Tax authority within the prescribed timelines. This approach indicates the company's intention to challenge the disallowance through proper legal channels.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of SEBI LODR, specifically under Part A Para B.8 Schedule III. The company has declared that all information provided is true, correct, and complete to the best of their knowledge and belief, as required under Regulation 30(13) of SEBI LODR and the SEBI Master Circular dated January 30, 2026.

Key Disclosure Summary

The company has confirmed there are no other relevant details beyond those disclosed in the formal communication to the stock exchanges.

Neelamalai Agro Industries Limited , a prominent player in the plantation sector, has announced its financial results for the second quarter and first half of the fiscal year, revealing a mixed performance with notable changes in revenue and profitability.

Revenue and Profitability

The company reported a standalone revenue from operations of Rs 496.56 lakhs for Q2, marking a decrease from Rs 664.30 lakhs in the corresponding quarter of the previous year. Despite the revenue decline, Neelamalai Agro Industries saw a significant boost in other income, which included substantial dividend income from associates and joint ventures amounting to Rs 401.15 lakhs for the half-year period.

Net profit after tax stood at Rs 369.27 lakhs for Q2, compared to Rs 563.41 lakhs in the same quarter of the previous year. This represents a year-on-year decrease in profitability, which may be attributed to various factors including changes in operational costs and market conditions.

Half-Year Performance

For the first half of the fiscal year, Neelamalai Agro Industries recorded a revenue of Rs 1,292.50 lakhs, showing a slight increase from Rs 1,282.23 lakhs in the previous corresponding period. This marginal growth suggests stability in the company's core operations despite challenging market conditions.

Earnings Per Share and Dividend

The basic earnings per share (EPS) for Q2 was reported at Rs 17.30, a significant decrease from Rs 90.34 in the same quarter of the previous year. This reduction in EPS aligns with the lower net profit reported for the quarter.

In a positive development for shareholders, the company declared a final dividend of Rs 30 per equity share for the year ended March 31, which has been paid out.

Financial Position

As of September 30, Neelamalai Agro Industries maintains a strong balance sheet with total assets of Rs 8,367.61 lakhs, up from Rs 7,944.66 lakhs at the end of the previous fiscal year. The company's equity position remains robust, with total equity standing at Rs 7,265.09 lakhs.

Cash Flow and Investments

The company's cash flow statement reveals strategic movements in its investment activities. Notably, there was a dividend received on investment in associates and joint ventures amounting to Rs 401.15 lakhs, contributing significantly to the company's other income.

Management Approval and Audit Review

The financial results were approved by the Board of Directors at their meeting held on November 13, and have undergone a limited review by the statutory auditors, PKF Sridhar & Santhanam LLP.

Outlook

While the company faces challenges in terms of reduced revenue and profitability compared to the previous year, the stable half-yearly revenue and significant dividend income from its investments indicate a diversified approach to maintaining financial health. The management's decision to pay out a substantial dividend despite the profit decline suggests confidence in the company's long-term prospects and commitment to shareholder returns.

Investors and stakeholders will likely keep a close watch on how Neelamalai Agro Industries navigates the current market conditions and leverages its investments to drive growth in the coming quarters.