Remsons Industries Limited has submitted additional details to BSE Limited regarding the delayed disclosure of an Income Tax order involving Rs 4.91 crore expense disallowance. The company provided clarifications on 27th February, 2026, following queries from the stock exchange about compliance with SEBI regulations.

Income Tax Appeal Outcome

The National Faceless Appeal Centre (NFAC) dismissed the appeal filed by Remsons Industries against the Assessment Order for Assessment Year 2021-22. The order, dated 18th February, 2026, upheld the disallowance of certain expenses worth Rs 4.91 crore made by the Assessing Officer.

Disclosure Delay Explanation

Remsons Industries clarified that the company received the Income Tax order via email on 18th February, 2026, but the disclosure was made only on 26th February, 2026. The company explained that the concerned officer responsible for regulatory compliance was on leave when the email notification was received, resulting in an 8-day delay in processing the information.

The company emphasized that the delay was not intentional and stated there was no intent to withhold information or cause harm to members, investors, or the public. Management assured that there was no intention to evade obligations under Regulation 30 of the Listing Regulations.

Regulatory Compliance Response

BSE Limited had raised queries regarding two specific issues: additional details required under SEBI Circular dated November 11, 2024, and the material event not being disclosed within 24 hours. In response, the company resubmitted comprehensive disclosure details as Annexure A, providing complete information about the Income Tax order.

Company's Financial Impact Assessment

Remsons Industries maintained its earlier position that there is no material impact on the company's financials, operations, or other activities due to this order. The company confirmed that the order is appealable and management continues to evaluate the merits of the matter.

The company plans to exercise its right to file an appeal before the Hon'ble Income Tax Appellate Tribunal, Mumbai within the prescribed timelines. This indicates the company's continued intention to challenge the expense disallowance through available legal remedies.

The communication was signed by Rohit Hasmukhbhai Darji, Company Secretary & Compliance Officer, reaffirming the company's commitment to maintaining highest standards of corporate governance and regulatory compliance.

Remsons Industries Limited delivered impressive Q3FY26 results, reporting consolidated revenue of ₹123 crores, marking a significant 20% year-on-year increase. The automotive component manufacturer demonstrated strong operational efficiency with EBITDA growing 18% to ₹147 million and net profit surging 34% to ₹51 million.

Financial Performance Highlights

The company's quarterly performance showcased robust growth across key metrics. EBITDA margins remained stable at 12%, consistent with the previous year, while earnings per share improved substantially to ₹1.47 from ₹1.14 in Q3FY25.

For the nine-month period, the company reported consolidated revenue of ₹338 crores, representing 25% growth, with EBITDA reaching ₹386 million, showing substantial 46% growth compared to the corresponding period last year.

Strategic Business Developments and Order Wins

During the quarter, Remsons secured significant business wins that strengthen its long-term revenue visibility. The company received a ₹60 crore order from a leading Indian commercial vehicle OEM for gear shifters and push-pull cables, scheduled to commence in Q1 FY27 over a five-year period.

The company expanded manufacturing capabilities with a 30,000 sq. ft. facility in Chakan, Pune, for locomotive applications and identified additional 20,000 sq. ft. property in the National Capital Region to support its ₹900 crore revenue target by 2030.

Management Guidance and Strategic Vision

During the earnings conference call held on February 13, 2026, Whole Time Director Rahul Kejriwal outlined the company's transformation into "Remsons 2.0," positioning it as a technology-oriented mobility solutions provider. Management highlighted strong order book visibility with ₹500 crores of confirmed orders and ₹800-900 crores in the pipeline.

The company expects ₹15-20 crores revenue from the Stellantis order in the current financial year, with an annual run rate of ₹40-50 crores from FY27. Management provided revenue guidance of ₹520-570 crores for FY27, targeting EBITDA margins of 13-14% over the next 2-3 years.

Earnings Call Transcript Availability

Remsons Industries has made the complete Q3 FY2026 earnings call transcript available on stock exchange websites and its corporate website at www.remons.com under the Investor Relations section. The transcript, conducted under Regulation 30 compliance, provides detailed insights into the company's performance and strategic direction, ensuring transparency for stakeholders and investors.

Credit Rating and Financial Position

ICRA upgraded the company's credit rating outlook during the period, improving the long-term rating from BBB to BBB+ and short-term rating from A3+ to A2. The company maintains a disciplined balance sheet with net debt-to-equity at 0.63x, supporting its expansion plans while maintaining financial stability.