Panasonic energy India Co. Ltd. has disclosed receiving an income tax assessment order through a regulatory filing with the Bombay Stock Exchange on December 18, 2025. The communication was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Assessment Order Details

The income tax department, specifically the office of the Deputy Commissioner of Income Tax Circle 2(1)(1), Vadodara, issued the assessment order to the company. The order was received on December 18, 2025, and pertains to violations related to tax deduction at source compliance.

Financial Demand Breakdown

The assessment order presents a comprehensive demand structure across multiple components:

Nature of Violation

The assessment order addresses delayed deduction of Tax Deducted at Source (TDS) under Section 194J of the Income Tax Act. Section 194J specifically covers payments made for professional or technical services, and the company appears to have faced compliance issues in timely deduction of such taxes.

Company's Response and Impact Assessment

Panasonic Energy India has indicated that the matter is subject to further action by the company, suggesting potential appeal or resolution procedures may be pursued. The company has provided a clear assessment of the potential impact on its business operations.

Regarding the financial and operational implications, the company has stated that the financial impact is limited to the extent of the demand and interest imposed. Importantly, the company has confirmed that there is no impact on its operational activities, indicating that normal business functions remain unaffected by this regulatory matter.

Regulatory Compliance

The disclosure was made through proper regulatory channels, with Company Secretary Srishti Jain signing the communication to the Bombay Stock Exchange. This filing demonstrates the company's commitment to maintaining transparency with stakeholders regarding material developments that could affect investor interests.

Panasonic Energy India Co. Ltd. has released its unaudited financial results for the quarter and six months ended September 30, 2025, revealing a mixed performance with revenue growth but a decline in profitability compared to the previous year.

Revenue Growth Amid Challenging Market Conditions

The company reported revenue from operations of ₹6,864.26 crore for Q2 FY2026, showing a significant increase from ₹5,800.50 crore in the previous quarter. This represents an 18.34% quarter-on-quarter growth. However, for the six-month period ended September 30, 2025, the revenue stood at ₹12,664.76 crore, slightly lower than the ₹13,162.78 crore reported in the corresponding period last year.

Profitability Under Pressure

Despite the revenue growth, Panasonic Energy India experienced a decline in profitability. The profit after tax for Q2 FY2026 was ₹192.09 crore, more than double the ₹83.80 crore reported in the previous quarter. However, when compared to the same quarter last year (₹404.13 crore), it represents a significant year-on-year decrease of 52.47%.

For the six-month period, the profit after tax stood at ₹275.89 crore, substantially lower than the ₹818.19 crore reported in the same period last year, marking a 66.28% decline.

Financial Performance Overview

Here's a tabular representation of the key financial metrics:

Operational Highlights and Challenges

The company's performance reflects a challenging operating environment. While there's been a recovery in revenue compared to the previous quarter, the year-on-year figures indicate ongoing pressures. The significant decline in profitability suggests increased costs or competitive pressures in the battery market.

Balance Sheet Position

As of September 30, 2025, Panasonic Energy India's total assets stood at ₹15,783.45 crore, slightly higher than the ₹14,751.46 crore reported on March 31, 2025. The company maintains a strong equity position with total equity of ₹10,345.08 crore.

Dividend Announcement

The company's shareholders approved a final dividend of ₹9.42 per equity share for the financial year ended March 31, 2025, at the Annual General Meeting held on September 24, 2025. As of September 30, 2025, this dividend had not yet been disbursed to eligible shareholders.

Future Outlook and Regulatory Challenges

Panasonic Energy India, along with other battery manufacturers, is navigating the implications of the Battery Waste Management Rules issued by the Ministry of Environment, Forest and Climate Change. These rules aim to regulate the collection, recycling, and disposal of battery waste under the Extended Producer Responsibility (EPR) framework. The company has made representations to the Ministry regarding practical challenges and associated costs, and is awaiting further guidance.

The management has also revised its accounting estimates for depreciation, which is expected to impact financial results going forward. This change includes a shift from the Written Down Value (WDV) method to the Straight Line Method (SLM) for depreciation calculation.

As Panasonic Energy India adapts to these regulatory and operational changes, investors and market observers will be keenly watching how the company navigates these challenges while striving to improve its financial performance in the coming quarters.