Is Hitachi Energy India Facing a Tax Demand of Rs 26 Crore?
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Synopsis
Hitachi Energy India Limited has been issued a tax demand notice for Rs 26.07 crore by the Income-tax Department for the assessment year 2022–23. The company plans to contest this demand, arguing it is unjustified. Despite this challenge, Hitachi Energy reported a remarkable financial performance recently, with profits surging over fivefold. Read more for insights.
Key Takeaways
- Hitachi Energy India faces a tax demand of Rs 26.07 crore.
- The company plans to appeal the demand, citing it as unjustified.
- Recent financial results show a significant profit increase.
- Revenue has risen by 18% year-on-year.
- The EBITDA margin has improved substantially.
Mumbai, Jan 24 (NationPress) Hitachi Energy India Limited announced on Saturday that it has been issued a tax demand notice by the Income-tax Department for the assessment year 2022–23, requesting the company to pay Rs 26.07 crore.
This sum comprises Rs 16.40 crore as income tax and Rs 9.67 crore as interest, as detailed in the company's exchange filing.
The company received the order from the Assessment Unit on January 23, 2026, at approximately 3:39 pm.
According to Hitachi Energy India, the tax demand is associated with disallowances concerning interest on delayed receivables and group management fees.
“The company has received the order from the aforementioned authority for the alleged disallowance of interest on delayed receivables and group management fee,” it stated in its regulatory filing.
The company contends that the tax demand and the interest charged are arbitrary, unjustified, and unsustainable under the law.
“Based on an assessment of facts and the prevailing law, the company believes that the tax demand and interest imposed are arbitrary, unjustified, and unsustainable in law,” Hitachi Energy India added.
Hitachi Energy India plans to contest the order and intends to file an appeal with the Income-tax Appellate Tribunal (ITAT) within the designated timeframe.
“The company will submit the necessary appeal to the Income Tax Appellate Tribunal (ITAT) regarding this matter within the allowable timeline,” it noted.
In other news, the company reported impressive financial results for the quarter ending September 30, 2025.
Its net profit surged more than fivefold to Rs 264 crore, compared to Rs 52 crore in the same quarter of the previous financial year.
Revenue for the quarter increased by 18 percent year-on-year (YoY) to Rs 1,832.5 crore. Earnings before interest, tax, depreciation, and amortization (EBITDA) more than doubled to Rs 299.3 crore, up from Rs 108.8 crore a year earlier.
The EBITDA margin also significantly improved to 16.3 percent, compared to 7 percent during the same period last financial year.
On the stock exchange, shares of Hitachi Energy India Limited closed at Rs 16,504.10 on the BSE, down Rs 357.40, or 2.12 percent, for the day.
Point of View
The situation surrounding Hitachi Energy India's tax demand is noteworthy. While the company asserts that the demand is arbitrary, the ongoing legal processes will be crucial in determining the outcome. As such matters unfold, it highlights the intricate relationship between corporations and regulatory frameworks, a subject of national interest.
NationPress
24/01/2026
Frequently Asked Questions
What is the tax demand amount Hitachi Energy India is facing?
Hitachi Energy India is facing a tax demand of Rs 26.07 crore, which includes Rs 16.40 crore as income tax and Rs 9.67 crore as interest.
When did Hitachi Energy India receive the tax demand notice?
The tax demand notice was received by Hitachi Energy India on January 23, 2026.
What is Hitachi Energy India's response to the tax demand?
Hitachi Energy India plans to appeal the order, asserting that the tax demand and interest charged are arbitrary and unjustified.
How has Hitachi Energy India's financial performance been recently?
The company reported a net profit increase of more than five times to Rs 264 crore for the quarter ending September 30, 2025.
What was the stock market response to Hitachi Energy India's performance?
Shares of Hitachi Energy India Limited closed at Rs 16,504.10 on the BSE, falling Rs 357.40, or 2.12 percent for the day.
