Xelpmoc Design & Tech Limited has filed an appeal against a significant GST demand order, seeking relief from tax demands totaling Rs.66,93,513/- for the financial year 2021-22. The company submitted its appeal on February 13, 2026, to challenge the order issued by tax authorities.

GST Demand Order Details

The demand order was issued by the Assistant Commissioner of Commercial Taxes (Audit)-4.5, DGSTO-4, Bengaluru, Karnataka, under Section 73 of CGST Act/KGST Act, 2017 read with Section 20 of IGST Act, 2017. The company had previously disclosed receiving a show cause notice on September 29, 2025, and provided details of the demand order on December 30, 2025.

Nature of Dispute

The GST authorities have alleged two primary violations in their demand order:

• Incorrect Classification: Non-payment of GST on outward supplies due to incorrect classification of such supplies as zero-rated as per Section 2(6) of the IGST Act
• Short Payment under RCM: Short payment of taxes under the Reverse Charge Mechanism (RCM) on inward supply of services under Section 9(3) of the CGST Act

Appeal Process

Xelpmoc Design & Tech Limited has filed its appeal with the Joint Commissioner of Commercial Taxes (Appeals)-4, BMTC Complex, Shanthinagara, Bangalore. The appeal seeks to set aside the tax, interest, and penalty demands imposed in Order No. File No. ACCT(Audit) 4.5/DGSTO-4/S-73-197/25-26 dated December 30, 2025.

Financial Impact Assessment

The company has clarified that while the financial impact of the order extends to Rs.66,93,513/-, there is no impact on operations or other activities of the company due to this order. The total quantum of claims stands at Rs.66,93,513/-.

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in accordance with SEBI Master circular no. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. Company Secretary and Compliance Officer Vaishali Shetty signed the regulatory filing on February 13, 2026.

Xelpmoc design & tech Limited has unveiled its investor presentation for Q3FY26 and the nine months ended December 31, 2025, highlighting significant growth in revenue and strong performance across its portfolio companies. The Bengaluru-based innovation catalyst specializes in providing technology solutions through design thinking, data science, and artificial intelligence.

Financial Performance Shows Strong Growth

The company delivered robust financial results for Q3FY26, demonstrating its ability to scale operations and generate increased revenue from its technology services business.

The company's revenue growth reflects its expanding client base and successful execution of technology projects across startups, corporates, and government sectors. As of December 31, 2025, Xelpmoc serves 65 clients with a team of 59 professionals.

Portfolio Companies Demonstrate Strong Traction

Xelpmoc's portfolio of 12 investee companies showed remarkable performance during the quarter, with the fair value of investments reaching approximately Rs 703.4 million as of December 31, 2025.

Key Portfolio Highlights

Mihup Communications emerged as a standout performer with significant business developments:

• Revenue of approximately Rs 83.3 million for 9MFY26
• Contracted value exceeding Rs 1,000 million
• Multi-million dollar contract signed with Tata Motors
• Successfully onboarded HDFC Bank onto its platform
• Serves major clients including Tata Motors, Canara HSBC, Angel Broking, and Pine Labs

Woovly achieved substantial growth in its social commerce platform:

• Current Annual Recurring Revenue (ARR) of $3.3 million
• 245+ brands on platform
• Notable enterprise clients include Henkel, Shiseido, L'Oréal, Samsonite, Titan Group, Decathlon, Unilever, Schwarzkopf, and Diageo

The Star In Me (TSIM) expanded its corporate client base:

• Gross revenues booked for 9MFY26: Rs 3.25 crores
• New clients include AXA and 7-Eleven
• Received Gold Award in 'Startup of the Year' category at ET Human Capital Annual Awards 2025

Strategic Business Developments

The company announced several strategic initiatives during the quarter, including the Board's approval for partial disposal of its investment in Mihup Communications Private Limited. The proposed transaction involves transferring 11,782 Series Seed CCPS at Rs 8,487.32 per share, aggregating to Rs 100 million.

Emerging Technology Focus Areas

Xelpmoc continues to strengthen its capabilities in high-growth technology sectors:

• Artificial Intelligence and Machine Learning: Specializing in Natural Language Processing and Data Analytics
• Agetech Solutions: Through Reverely® Agetech venture studio, focusing on elder care innovations
• Blockchain Technology: Developing decentralized ledger solutions for various industries
• Government Technology: Expanding capabilities in public service delivery platforms

Business Model and Market Position

The company operates through a multi-dimensional approach, serving three primary segments: startups, corporates, and government entities. This diversified model enables Xelpmoc to leverage its technology expertise across various sectors while building a network of innovative companies.

Xelpmoc's unique positioning as an "innovation catalyst" allows it to participate in the growth of portfolio companies through equity stakes while generating revenue from technology services. The company's global engagements span multiple countries, demonstrating its ability to deliver solutions at international standards.

Source: Company Investor Presentation