Axel Polymers Limited reported a net loss of ₹112.64 lakhs for the financial year ended March 31, 2026, a significant increase from the net profit of ₹17.35 lakhs in the previous year. The company’s financial performance was impacted by lower operating revenues and increased competition. Furthermore, Axel Polymers is facing a GST Show Cause Notice for alleged wrongful availment of Input Tax Credit totaling ₹31.57 crore, along with ongoing investigations from SEBI and the Income Tax Department.
Financial Performance Decline
Axel Polymers Limited has announced its financial results for the fiscal year ended March 31, 2026. The company recorded a substantial net loss of ₹112.64 lakhs, a considerable downturn from a net profit of ₹17.35 lakhs in the previous fiscal year (FY 2024-25). This shift is attributed to a decrease in operating revenues, intensified competitive pressures, and fluctuations in raw material costs.
Revenue from operations for FY 2025-26 stood at ₹4,439.52 lakhs, down from ₹7,808.52 lakhs in FY 2024-25. Total income also saw a decline, amounting to ₹4,451.26 lakhs compared to ₹7,822.42 lakhs in the prior year. The company reported a loss before tax of ₹125.49 lakhs, versus a profit before tax of ₹31.14 lakhs in the preceding year.
Material Uncertainty: GST Show Cause Notice
A significant concern highlighted in the company’s report is a GST Show Cause Notice received on January 19, 2026. This notice pertains to the financial years 2021-22 to 2024-25 and alleges wrongful availment of Input Tax Credit (ITC) amounting to ₹31.57 crore, plus applicable interest and penalties. The company has stated that it has obtained legal advice and believes it has a strong case to contest the allegations.
Ongoing Investigations
Further to the GST proceedings, investigations have been initiated by the Securities and Exchange Board of India (SEBI) and the Income-tax Department. These proceedings are currently ongoing, and the company is cooperating fully with the authorities. The contingent liabilities arising from these matters are not yet quantifiable.
Other Legal Proceedings
Additionally, Axel Polymers is involved in legal proceedings with a vendor under Section 138 of the Negotiable Instruments Act, involving nine post-dated cheques aggregating to ₹18 crore. The company maintains these cheques were issued as security, not towards an existing debt, and is contesting the matter in court.
The company’s auditors noted a material uncertainty that may cast doubt on its ability to continue as a going concern, although their opinion on the financial statements remains unmodified.
Source: BSE
