PSP Projects Limited has received a GST penalty order of ₹11,19,366 from the State Tax Officer in Ahmedabad, as disclosed in a regulatory filing on February 21, 2026. The penalty relates to alleged tax violations during the financial year 2019-20.

Details of the GST Penalty Order

The penalty order was issued in Form GST DRC-07 under Section 74 of the GGST Act, 2017 read with CGST Act, 2017 and Section 20 of IGST Act, 2017. The company received this order on February 20, 2026, from the Office of State Tax Officer under Jurisdiction Ghatak 6 (Ahmedabad), Range - 2, Division - 1, Gujarat.

Nature of Alleged Violations

The tax authority has alleged that PSP Projects claimed ineligible Input Tax Credit under section 16(2) during FY 2019-20. The specific violations cited include:

• Claiming Input Tax Credit from cancelled taxpayers
• Claiming credits from non-genuine and non-existent taxpayers
• Claiming credits from return/tax defaulters

Company's Response and Impact Assessment

PSP Projects has stated that there is no material impact on the company's financials or operations due to this order. The company has assessed the facts and prevailing law and is in the process of filing an appeal with the appellate authority to challenge this penalty order.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary and Compliance Officer Pooja Dhruve signed the regulatory filing, ensuring transparency with stakeholders regarding this development.

The company has provided comprehensive details as required under SEBI Listing Regulations and the Master Circular dated January 30, 2026, maintaining full regulatory compliance in its disclosure process.

PSP Projects has released the complete transcript of its Q3FY26 earnings conference call held on January 30, 2026, providing comprehensive insights into the company's strong financial performance and business developments.

Outstanding Financial Performance

The company delivered exceptional results for Q3FY26, demonstrating significant growth across key financial metrics:

Record Order Book and Strong Pipeline

PSP Projects reported a robust order book position as of December 31, 2025:

The company has emerged as the lowest bidder for the Ambaji Corridor Development Project valued at ₹965 crores, which will further strengthen its order book position.

Major Project Completions and Updates

During Q3FY26, PSP Projects successfully completed five significant projects, including the Veer Savarkar Sports Complex in Ahmedabad, one of the first stadiums for Commonwealth 2030 and aimed at Olympics 2036. The company also completed Terminal 1 and Terminal 2 forecourt area development at Ahmedabad Airport and industrial projects for the Waghbakri Group.

Favorable Arbitration Award

The company received a significant boost with a favorable arbitral award dated January 11, 2026, in the PSP versus Bhiwandi matter. The arbitral tribunal directed BMCMC to pay PSP Projects a principal amount of ₹61.44 crores plus interest at 9% per annum, with payment required within 60 days.

Strong Revenue Guidance and Future Outlook

Management confirmed their revenue guidance of ₹3,100-3,200 crores for FY26 and projected revenue of ₹4,000-4,500 crores for FY27. The company maintains a healthy bid pipeline of ₹6,600 crores, with 60% from group projects and 40% from external projects.

Balance Sheet Highlights

Key balance sheet metrics as of December 31, 2025, demonstrate the company's financial strength:

The earnings call transcript, filed under reference number PSPPROJECT/SE/78/25-26, provides stakeholders with detailed management commentary on business developments and strategic initiatives for the coming quarters.