V-Guard Industries Limited has received a GST audit objection from Central Goods and Services Tax (CGST) authorities involving a substantial amount of ₹17,75,91,297. The company disclosed this development through a regulatory filing dated February 1, 2026, in compliance with SEBI Listing Regulations.

GST Audit Objection Details

The audit objection was received from Superintendent, CGST Audit Group 12, Haldwani, Kashipur Circle, Uttarakhand, on January 31, 2026. The objection pertains to alleged excess availment of Input Tax Credit (ITC) under section 65 of the CGST Act.

Financial Implications

The GST audit objection carries significant financial implications for V-Guard Industries. The demand involves differential GST of ₹17,75,91,297 along with applicable interest and penalty provisions under section 74 of the CGST Act.

Company's Response Strategy

V-Guard Industries has indicated its intention to contest the audit objection. The company emphasized several key points regarding its response approach:

• Currently evaluating the intimation to formulate appropriate reply steps
• Clarified that this is not a demand order at present
• Expressed confidence in having strong grounds to challenge the objection
• Plans to contest the matter before the appropriate authority

The company's management appears confident about their position, suggesting they believe the GST authorities' objection may not withstand scrutiny during the appeals process. This regulatory disclosure ensures transparency with stakeholders while the company prepares its defense strategy against the alleged excess ITC availment charges spanning four financial years.

V-Guard Industries has reported its third quarter consolidated financial results, showing a decline in net profit compared to the same period last year. The electrical equipment manufacturer posted a consolidated net profit of ₹570 million for the quarter, representing a decrease from the ₹602 million recorded in the corresponding quarter of the previous fiscal year.

Financial Performance Overview

The company's quarterly performance indicates a year-on-year decline in profitability, with net profit dropping by ₹32 million compared to the same quarter last year. This translates to a decrease of approximately 5.3% in the company's bottom line performance.

Quarterly Results Analysis

The third quarter results reflect the operational challenges and market conditions that impacted V-Guard Industries during the period. The decline in consolidated net profit suggests that the company faced headwinds that affected its overall profitability compared to the strong performance in the same quarter of the previous year.

The electrical equipment sector, where V-Guard Industries operates, has been experiencing various market dynamics that influence company performance. The reported figures provide insight into how these factors have affected the company's financial outcomes during the quarter.

Market Context

V-Guard Industries' third quarter performance comes at a time when the electrical equipment industry continues to navigate various operational and market challenges. The year-on-year comparison provides stakeholders with a clear picture of the company's current financial trajectory relative to its historical performance in the same period.