Mumbai: Shares of Polycab India Ltd closed lower on Wednesday after the company said it has received an income tax demand of Rs 327.45 crore for assessment year 2024-25.
The order was issued by the office of the Deputy Commissioner of Income Tax, Mumbai and was received by the company on March 3, 2026.
This demand comes after an assessment order which includes disallowances and additions of Rs 41.87 crore.
However, Polycab said that after consulting its tax advisor, it believes the total demand appears to be higher than the addition stated in the order due to possible computational or clerical errors.
The company said that these mistakes can be corrected under the rules of the Income Tax Act and it has started the process of filing rectification application with the Jurisdictional Assessing Officer. Polycab also said that it does not believe the tax demand is legally justified and is preparing to appeal against these increases under the Income Tax Act, 1961.
The company also said that it does not expect this order to have any significant impact on its financial position or operations.
Despite the tax issue, the company reported good quarterly earnings. Its revenue increased 46.1 percent year-on-year to Rs 7,636.1 crore in the December quarter.
Earnings before interest, tax, depreciation and amortization (EBITDA) rose 34.2 per cent to Rs 966.7 crore from Rs 720 crore a year ago.
However, EBITDA margin declined to 12.66 percent from 13.8 percent last year.
The company’s advertising and sales promotion expenses more than doubled to Rs 91 crore from Rs 37.3 crore in the same quarter last year.
Finance costs also rose to around Rs 69 crore from Rs 50 crore a year ago, according to earlier stock exchange filings.
Segment wise, revenue from core wires and cables business increased to Rs 6,852 crore from Rs 4,450 crore last year.
Fast-moving electrical goods (FMEG) segment revenue rose to nearly Rs 500 crore from Rs 423.1 crore, while the EPC segment reported revenue of Rs 407 crore as against Rs 392 crore a year ago.
Following these developments, shares of Polycab India Ltd closed at Rs 8,274.50, down Rs 273.90 or 3.20 per cent on the BSE.
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