Storage Technologies & Automation Limited has received a GST order from the Karnataka GST Department for FY2021-22, with total financial implications of ₹2,30,584. The company disclosed this development through a regulatory filing under Regulation 30 of SEBI Listing Regulations on December 22, 2025.

GST Order Details

The order was received on December 18, 2025, from the Deputy Commissioner, DGSTO-S, Bengaluru, Karnataka, under Section 73 of the KGST Act. The company had initially filed the disclosure on December 20, 2025, but provided updated details in a subsequent filing dated December 22, 2025.

Nature of Violation

The GST order pertains to excess Input Tax Credit (ITC) claims made by the company during FY2021-22. The violation involves specific steel products that form part of the company's business operations.

Products Involved:

• Sheet Piling of Iron or Steel (whether or not drilled, punched or made from assembled elements)
• Welded Angles, Shapes and Sections of Iron or Steel

Regulatory Timeline and Compliance

The company received a Show Cause Notice dated September 25, 2025, prior to the final order. The penalty has been imposed in accordance with Section 73(9) of the Karnataka Goods and Service Tax Act, 2017 (KGST Act) and the Central Goods and Service Tax Act, 2017 (CGST Act), along with relevant sections of the GST (Compensation) Act, 2017.

In its updated disclosure, the company acknowledged a delay in filing the order, explaining that officials were internally evaluating the impact and finalizing the further course of action. The company noted that as per Schedule III, Part A, Clause 20(v)(ii) of the SEBI (LODR) Regulations, 2015, disclosure of fines or penalties below ₹1,00,000 are required to be disclosed on a quarterly basis, making this intimation voluntary.

Company's Response

Storage Technologies & Automation has indicated that it does not foresee any impact on the financial operation or other activities of the company from this GST order, describing it as not material. The company has stated it is examining the order and will take appropriate steps as required.

The information has been hosted on the company's website at www.racksandrollers.com in compliance with Regulation 46 of the Listing Regulations. The disclosure was signed by Cauveramma BB, Company Secretary and Compliance Officer.

Storage Technologies & Automation Limited (STAL), a company specializing in racking, shelving, and automation solutions, has reported mixed financial results for the first half of fiscal year 2026 (H1FY26). Despite a year-on-year revenue growth, the company faced challenges that led to a net loss.

Revenue Growth Amidst Challenges

STAL reported a 7.9% year-on-year increase in revenue from operations, reaching ₹470.53 crore in H1FY26 compared to ₹436.15 crore in H1FY25. However, on a sequential basis, revenue decreased by 7.4% from ₹508.01 crore in H2FY25. The company attributed this decline to elongated execution timelines for certain projects.

Financial Performance Overview

Here's a breakdown of STAL's key financial metrics for H1FY26:

Profitability Challenges

Despite the revenue growth, STAL faced significant profitability challenges:

1. EBITDA Decline: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) fell sharply to ₹3.25 crore, down from ₹40.36 crore in H1FY25. This resulted in an EBITDA margin contraction from 9.3% to 0.7%.

2. Net Loss: The company reported a net loss of ₹15.50 crore in H1FY26, compared to a profit of ₹12.45 crore in the same period last year.

3. Margin Pressure: The sharp decline in profitability was attributed to higher on-site manpower costs, increased rentals, and execution-related overheads on delayed projects.

Management Outlook

Despite the current challenges, STAL's management remains optimistic about the future:

1. Revenue Target: The company has set a revenue target of ₹1,200 crore for FY26.
2. Margin Recovery: Management expects margins to improve in the second half of FY26 as revenue scales up and cost overhangs ease.
3. Seasonal Strength: The company anticipates better performance in H2, which is historically a stronger period for the business.

Investor Presentation

In a voluntary disclosure to enhance transparency, STAL has prepared an investor presentation providing an overview of its operational and financial performance. This move demonstrates the company's commitment to keeping its shareholders and stakeholders well-informed.

As STAL navigates through these challenging times, investors and market watchers will be keenly observing how the company executes its strategies to return to profitability and achieve its revenue target for FY26.