Timex Group India Limited has informed the stock exchanges about receiving a significant order from the GST Appeals Commissioner regarding reassessment of its tax returns for the financial year 2019-20. The development was communicated to BSE Limited on February 18, 2026, under Regulation 30 of SEBI listing requirements.

GST Appeals Commissioner Order Details

The company received the order on February 17, 2026, from the Office of the Commissioner (Appeals), Central Goods & Services Tax Appeals Commissionerate, Chandigarh. This order came in response to an appeal filed by Timex Group on October 24, 2024, against an earlier order passed by the Assistant Commissioner, CGST Division, Baddi on July 30, 2024.

Nature of GST Assessment Issues

The Appeals Commissioner has directed a remand-back order to the Assistant/Deputy Commissioner Baddi for reassessment covering multiple GST compliance areas. The order specifically addresses discrepancies in the company's GST returns for FY2019-20, focusing on documentation verification and input tax credit claims.

Key Assessment Areas

The reassessment covers the following specific issues:

• Difference in outward taxable supplies between GSTR1 and E-way bill documentation
• Ineligible input tax credit (ITC) claims identified by the department
• Excess input tax credit availed in GST returns beyond permissible limits

Financial Impact Assessment

The order carries significant financial implications for Timex Group India, with the total impact quantified in the regulatory disclosure.

Company Response and Next Steps

Timex Group India is currently assessing the comprehensive impact of the Appeals Commissioner's order with assistance from legal counsel. The company has indicated its intention to file the necessary response and documentation as required under the remand-back order.

The reassessment process will involve detailed documentation review with the Assistant Commissioner, CGST Division, Baddi, to address the identified discrepancies in the FY2019-20 GST returns. The company's legal team is preparing the required submissions to support its position on the contested tax matters.

This disclosure follows the company's earlier communications to the stock exchanges dated January 3, 2024, and August 1, 2024, regarding ongoing GST proceedings, indicating the extended timeline of these tax assessment matters.

Timex Group delivered exceptional financial performance in Q3, demonstrating strong operational growth across key financial metrics. The company reported significant improvements in profitability, revenue generation, and operational efficiency compared to the corresponding quarter of the previous year.

Comprehensive Financial Performance

The company's Q3 financial results showcased remarkable growth momentum across multiple parameters. Both EBITDA and net profit experienced substantial expansion, while revenue figures indicated strong market demand and enhanced operational efficiency.

EBITDA Performance Excellence

Timex Group's EBITDA performance emerged as the standout highlight of the quarter. The company achieved ₹96 million in EBITDA, representing an impressive 129% increase from ₹42 million recorded in the same quarter of the previous year. This substantial improvement demonstrates the company's enhanced operational leverage and cost optimization initiatives.

Margin Expansion Success

The company's EBITDA margin showed remarkable improvement, expanding to 6.33% in Q3 from 3.51% in the corresponding quarter of the previous year. This 282 basis points expansion reflects improved operational efficiency, better cost management, and enhanced pricing strategies across the business portfolio.

Profitability and Revenue Growth

Timex Group's net profit performance complemented its EBITDA gains, achieving ₹32 million in net profit, a significant 68% increase from ₹19 million in the previous year's corresponding quarter. The company's revenue performance remained robust, generating ₹1.5 billion during Q3, compared to ₹1.2 billion in the same period last year, reflecting 25% year-on-year growth.

Overall Performance Assessment

The Q3 results demonstrate Timex Group's exceptional operational execution and financial discipline. The company's ability to achieve triple-digit EBITDA growth while expanding margins significantly indicates strong business fundamentals and effective strategic implementation during the reporting period.