Regaal Resources Limited has received an adjudication order from the Registrar of Companies (ROC), Kolkata, imposing penalties under Section 454 of the Companies Act, 2013. The company disclosed this development on February 10, 2026, pursuant to Regulation 30 of SEBI Listing Regulations.

Adjudication Order Details

The company received the adjudication order dated February 9, 2026, from the Adjudication Authority, ROC Kolkata. This order follows the earlier show cause notice issued for e-adjudication of defaults under various sections of the Companies Act, 2013.

Specific Violation and Penalties Imposed

The adjudication order specifically addresses one key contravention related to filing irregularities. The company and its officers in default received penalties for violation of provisions regarding Filing of Return of Allotment (Form PAS-3) without attaching the required valuation report from a registered valuer as mandated under Rule 12(7) of the Companies (Prospectus and Allotment of Securities) Rules, 2014.

Previous Show Cause Notice Context

Prior to this adjudication order, the company had received a show cause notice addressing four specific contraventions including audit committee constitution delay, nomination committee delay, valuation report issues, and share allotment mode violations. The initial notice had outlined potential penalties of Rs 22,00,000 for the company and Rs 12,00,000 for officers, totaling Rs 34,00,000.

Company Assessment and Impact

Regaal Resources has assessed that there is no material impact on the company's financial operations or other activities on account of this adjudication order. The disclosure was made as a matter of abundant caution and transparency, signed by Tinku Kumar Gupta, Company Secretary and Compliance Officer.

The company communicated this development to both NSE (Symbol: REGAAL) and BSE (Scrip Code: 544485) as required under SEBI regulations, ensuring full compliance with disclosure requirements.

Regaal Resources Limited disclosed receiving a notice from the Joint Commissioner of State Tax, Kishanganj Circle for recovery of Rs 149.00 crore related to wrong SGST subsidy reimbursement, even as the company reported strong quarterly financial performance with 25.55% revenue growth.

Regulatory Notice Details

The company received a notice regarding 'Notice for recovery of wrong reimbursement' from the Office of the Joint Commissioner of State Tax, Kishanganj Circle. The notice pertains to subsidy claimed under the Bihar Industrial Promotion Policy, 2016/2011 from April 2019 to December 2024.

According to the notice, certain distributors utilized SGST credits inappropriately for IGST payments on interstate sales, which violates Resolution No.108 dated January 20, 2020 issued by the Department of Industries.

Financial Performance Overview

Despite regulatory challenges, the company demonstrated robust operational performance in Q3FY26. Revenue from operations reached Rs 3,229.70 million, marking a substantial increase of 25.55% compared to Rs 2,572.28 million in Q3FY25.

Impact Assessment and Recovery Strategy

Based on current assessment, the company expects to recover Rs 104.64 million from concerned distributors due to breach of agreement clauses regarding SGST credit utilization. The balance amount, including pending subsidy till December 31, 2025, totaling Rs 66.57 million has been provided as an exceptional item in Q3FY26 financial results.

Nine-Month Performance and IPO Proceeds

For the nine-month period ended December 31, 2025, the company maintained strong momentum with revenue from operations of Rs 8,895.62 million compared to Rs 6,566.23 million in the corresponding period, representing growth of 35.47%. Net profit for the nine-month period stood at Rs 390.25 million.

The company has substantially utilized its IPO proceeds raised in August 2025, with Rs 1,857.31 million deployed out of Rs 1,871.40 million allocated for debt repayment and general corporate purposes.

Legal Response Strategy

Regaal Resources stated it is examining the notice and will take appropriate legal steps, including filing replies and appeals as advised. The company disclosed this information in compliance with SEBI Listing Regulations under Regulation 30 read with Para B of Part A of Schedule III.