Zenith Fibres Limited , a company listed on the BSE, has recently received an Order-In-Original from the Office of the Commissioner of CGST and Central Excise Audit Commissionerate, Vadodara. This order, dated November 11, 2025, follows a Show Cause Notice issued earlier to the company.

Key Details of the Order

The Order-In-Original includes the following demands:

Background and Implications

Previous Notice

The company had initially received a Show Cause Notice proposing a GST demand of Rs 19,43,542, along with applicable interest and penalty for the period FY 2017-18 to FY 2022-23.

Current Order

The recent order demands recovery of Rs 14,78,179 for wrongly availed Input Tax Credit (ITC) under GST provisions. This amount is lower than the initially proposed figure in the Show Cause Notice.

Legal Recourse

Zenith Fibres has stated its intention to file an appeal challenging the GST imposition and penalty levy. The company has sought legal advice and plans to follow the procedure laid down under the CGST Act, 2017.

Financial Impact

The company considers it unlikely that this potential demand will materialize as a claim. However, they acknowledge the difficulty in assessing the financial impact until the matter's outcome from the Adjudicating Authority is known.

Disclosure Compliance

This disclosure was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, demonstrating the company's commitment to transparency.

Company's Stance

Zenith Fibres maintains that it is premature to quantify the financial impact of this order. The company has assured stakeholders that it will update the Stock Exchange on any material developments in this matter.

As the situation unfolds, investors and stakeholders of Zenith Fibres Limited should keep a close watch on further updates from the company regarding the progress of their appeal and any potential financial implications.

Zenith Fibres Limited , a manufacturer of manmade fibers and operator of wind turbines, has reported a net loss for the quarter ended September 30, 2025, reflecting challenging market conditions in the fiber industry.

Financial Performance

The company's financial results for Q2 FY26 reveal:

Zenith Fibres reported a net loss of Rs 5.78 crore for Q2 FY26, compared to a net profit of Rs 37.82 crore in the previous quarter and Rs 69.46 crore in the same quarter last year. The company's revenue from operations declined to Rs 934.79 crore from Rs 972.02 crore in the preceding quarter, representing a decrease of 3.83%.

Segment Performance

The company operates in two segments:

1. Manmade Fiber: This segment reported a loss before tax and interest of Rs 104.92 crore for the quarter.
2. Wind Mill: The wind power generation segment generated a profit of Rs 20.88 crore, providing some offset to the losses in the main business.

Expenses and Cost Pressures

Total expenses for the quarter stood at Rs 1,019.15 crore, with the cost of materials consumed being the largest component at Rs 583.52 crore. The increase in expenses, coupled with the decline in revenue, contributed to the quarterly loss.

Half-Year Performance

For the half-year period ended September 30, 2025:

• The company posted a net profit of Rs 32.04 crore
• Revenue from operations was Rs 1,906.81 crore

Balance Sheet Highlights

As of September 30, 2025:

• Total assets stood at Rs 6,070.40 crore
• Cash and cash equivalents were Rs 1,418.54 crore
• Total equity was Rs 5,677.18 crore

Market Conditions

The financial statements indicate that Zenith Fibres is facing headwinds in its core manmade fiber business, which may be attributed to broader market conditions affecting the textile industry.

Business Segment Analysis

The contrasting performance of the company's two business segments suggests that diversification into wind power generation may be providing some stability to overall operations. The manmade fiber segment's performance appears to be closely tied to global textile demand and raw material prices.