PI Industries Limited has received a GST demand order worth ₹3.90 crores from tax authorities in Bhatinda, Punjab, relating to alleged tax violations for the financial year 2021-22. The company disclosed this development through a regulatory filing on January 06, 2026, in compliance with SEBI listing regulations.

GST Demand Details

The demand order was issued by the Office of the Excise and Taxation Officer-cum-State Tax Officer, Jurisdiction – Bhatinda, under Section 73 of the Central Goods and Service Tax (CGST) Act, 2017 read with Punjab Goods and Services Tax (PGST) Act, 2017. The total demand amount includes tax, interest, and penalty components.

Nature of Alleged Violations

The tax authorities have raised the demand primarily on account of disallowance of input tax credits that were availed by the company during the financial year 2021-22. Input tax credit is a mechanism that allows businesses to claim credit for taxes paid on inputs used in the manufacture of goods or provision of services.

Company's Response and Impact Assessment

PI Industries has stated that there is no material impact on the company's financials, operations, or other activities due to this demand order. The company has sought legal advice on the matter and believes it has adequate grounds to contest the tax authorities' decision.

The company is currently in the process of filing an appeal before the appropriate authority to challenge the demand order. This indicates that PI Industries disputes the tax authorities' interpretation and application of GST provisions in their specific case.

Regulatory Compliance

The disclosure was made in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates listed companies to inform stock exchanges about material events that could impact investor decisions. The company provided detailed information in a structured format as required under the SEBI Master Circular issued in November 2024.

This development represents a routine regulatory challenge that companies often face during tax assessments, and the company's decision to contest the order suggests confidence in its tax compliance practices for the period in question.

PI Industries , a major Indian agrochemical company, may face potential challenges as its key client, Kumiai Chemical Industry, has released concerning financial projections for FY26. The Japanese chemical company anticipates significant hurdles ahead, with expectations of declining revenue and substantially reduced profitability.

Financial Performance Projections

Kumiai's financial outlook for FY26 presents a challenging scenario across key performance metrics:

The projected 32% decline in operating profit represents a particularly steep reduction, indicating potential margin pressures and operational challenges facing the Japanese chemical manufacturer.

Implications for PI Industries

Kumiai's status as a key client makes these projections significant for PI Industries' stakeholders. The relationship between the two companies positions Kumiai as an important business partner in PI Industries' client portfolio. The Japanese company's anticipated financial difficulties could have implications for future business arrangements and order volumes.

Market Context

The projected decline in both revenue and operating profit suggests Kumiai is preparing for a challenging business environment in FY26. The substantial difference between the revenue decline (5%) and operating profit decrease (32%) indicates that the company expects margin compression, possibly due to increased costs or competitive pressures in the chemical industry.

These financial projections highlight the interconnected nature of global chemical industry relationships and the potential ripple effects that client performance may have on supplier companies like PI Industries.