Vindhya Telelinks Limited has disclosed receiving a GST appeal order that confirms a significant tax demand for the financial year 2019-20. The Joint Commissioner of GST (Appeal-II), Tamil Nadu, passed the order on February 25, 2026, which the company received on March 2, 2026.

GST Appeal Order Details

The Joint Commissioner partially allowed the company's appeal, resulting in a confirmed GST demand that is substantially lower than the original assessment. The order addresses excess availment of Input Tax Credit (ITC) amounting to Rs 62,35,037/- for 2019-20 due to non-reflection in GSTR-8A.

Note: Interest calculated up to March 2, 2026

Reduction in Original Demand

The appeal resulted in a significant reduction in the GST component of the demand. While the original GST demand stood at Rs 1,54,88,073/-, the Joint Commissioner's order confirmed a reduced demand of Rs 62,35,037/- under the provisions of Section 73 of Central Goods and Services Tax Act, 2017 / Tamil Nadu Goods and Services Tax Act, 2017 read with Integrated Goods and Services Act, 2017.

Company's Response and Next Steps

Vindhya Telelinks Limited has indicated that the financial impact cannot be determined at this stage. The company has stated its intention to file an appeal against the said order, suggesting it will continue to contest the confirmed demand through available legal remedies.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has also uploaded the information on its website at www.vtlrewa.com as part of its transparency and compliance obligations.

The order represents a continuing tax matter for the telecommunications equipment manufacturer, with the company maintaining its position to challenge the confirmed demand through further legal proceedings.

Vindhya Telelinks Limited has announced its unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025. The company's Board of Directors approved these results at their meeting held on February 6, 2026, marking a challenging quarter with significant financial headwinds.

Standalone Financial Performance

The company reported a standalone net loss of ₹1,966.49 lakhs for Q3FY26, a sharp reversal from the net profit of ₹2,691.76 lakhs recorded in Q3FY25. This represents a significant deterioration in profitability amid challenging market conditions.

Revenue from operations declined significantly by 31.46% year-on-year to ₹71,055.21 lakhs from ₹103,712.27 lakhs in the corresponding quarter of the previous year. The company's total expenses stood at ₹73,732.14 lakhs, resulting in a loss before tax of ₹2,595.33 lakhs compared to a profit before tax of ₹3,562.27 lakhs in Q3FY25.

Segment-wise Performance Analysis

The company operates through two primary business segments: Cables and Engineering, Procurement & Construction (EPC). The segment-wise performance reveals contrasting trends across these business verticals.

The cables segment demonstrated resilience with improved segment results of ₹1,152.94 lakhs compared to ₹936.12 lakhs in Q3FY25, despite a marginal revenue decline. However, the EPC segment faced significant challenges, reporting negative segment results of ₹67.46 lakhs against a positive ₹5,089.65 lakhs in the previous year, alongside a substantial revenue decline.

Nine Months Performance Overview

For the nine months ended December 31, 2025, the standalone performance showed more stability with net profit of ₹3,294.12 lakhs compared to ₹7,732.63 lakhs in the corresponding period of FY25. Revenue from operations for the nine-month period stood at ₹256,126.56 lakhs versus ₹282,318.56 lakhs in the previous year.

Consolidated Results

On a consolidated basis, the company reported a net loss of ₹103.91 lakhs for Q3FY26 compared to a net profit of ₹3,909.32 lakhs in Q3FY25. The consolidated revenue from operations was ₹71,655.98 lakhs for the quarter. For the nine months period, consolidated net profit stood at ₹11,670.50 lakhs with total comprehensive income of ₹15,471.21 lakhs.

Impact of Labour Code Changes

The company's employee benefits expense for Q3FY26 includes an incremental impact of gratuity liability amounting to ₹823.53 lakhs. This adjustment stems from the four Labour Codes that became effective from November 21, 2025, implemented in accordance with guidance from the Institute of Chartered Accountants of India and clarifications from the Ministry of Labour & Employment.

Financial Position and Outlook

The company maintains a paid-up equity share capital of ₹1,185.09 lakhs with a face value of ₹10 per share. The results were reviewed by the statutory auditors V. Sankar Aiyar & Co., who provided an unmodified limited review report. The financial statements reflect the company's ongoing efforts to navigate challenging market conditions while maintaining operational efficiency across its business segments.