Polycab India Limited has received a significant update regarding its income tax assessment matter, with the demand amount substantially reduced following a rectification order. The company disclosed this positive development to stock exchanges, showing progress in resolving the tax dispute that initially involved Rs 327.45 crore.

Original Assessment and Rectification Process

The Office of the Deputy Commissioner of Income-Tax, Mumbai had initially issued an assessment order under Section 143(3) of the Income Tax Act, 1961 for Assessment Year 2024-25, relevant to Financial Year 2023-24. The original order contained disallowances and additions aggregating to Rs 41.87 crore but resulted in a disproportionately high demand of Rs 327.45 crore due to computational and clerical errors.

Successful Rectification Outcome

Following the company's rectification application under Section 154 of the Income Tax Act to correct computational and clerical errors, the Income Tax Authority issued a rectification order. This resulted in the aggregate income tax demand being substantially reduced to Rs 57.58 crore from the original Rs 327.45 crore, representing a reduction of Rs 269.87 crore.

Further Action Plan

Despite the significant reduction, Polycab India, in consultation with its tax advisors, believes the revised demand of Rs 57.58 crore is still due to certain issues, particularly the non-granting of advance tax credit. The company has identified this as rectifiable under Section 154 of the Act and has initiated the process for filing another rectification application before the jurisdictional Assessing Officer.

Company's Legal Strategy

The company maintains its position that the tax demand raised pursuant to the assessment order is not sustainable in law, based on advice from its tax consultants. Polycab India is proceeding with filing an appeal against the additions made in the assessment order under applicable provisions of the Income Tax Act, 1961.

Financial Impact Assessment

Polycab India has stated that it does not expect any material impact on its financial position or operations due to this assessment order. This disclosure represents a continuation of the company's earlier communications to exchanges, demonstrating ongoing resolution efforts through prescribed legal channels.

Polycab India Limited has announced the allotment of equity shares under its Employee Stock Option Performance Scheme 2018. The Finance and Operations Committee approved this corporate action during its meeting held on March 09, 2026.

Share Allotment Details

The committee approved the allotment of shares to eligible employees who exercised their stock options under the company's ESOP scheme. The following table summarizes the key details of this allotment:

Regulatory Communication

Polycab India has informed both major stock exchanges about this allotment as part of its compliance obligations. The communication was sent to:

• BSE Limited (Department of Corporate Services)
• National Stock Exchange of India Limited (Listing Department)

The notification was signed by Manita Carmen A. Gonsalves, Vice President-Legal and Company Secretary, ensuring proper corporate governance procedures were followed.

Employee Stock Option Scheme

The allotment represents the exercise of stock options by eligible employees under the Employee Stock Option Performance Scheme 2018. This scheme allows qualified employees to purchase company shares at predetermined prices, serving as an employee retention and motivation tool.

The company has maintained its commitment to transparent disclosure practices by promptly notifying the stock exchanges of this corporate action, ensuring all stakeholders are informed of the share allotment.