Vashu Bhagnani Industries says no tax demand after search

Vashu Bhagnani Industries Limited said that, as of its November 14, 2026 results date, it had received no tax order, demand, show-cause notice or other communication following a September 28 to October 4 search, and had made no adjustment to current or prior financial results. The disclosure followed seizure of electronic records by Mumbai tax authorities.

What did Vashu Bhagnani Industries disclose about the tax search?

Vashu Bhagnani Industries said the Income Tax Department, Mumbai conducted search and seizure activity at certain company offices and residences of certain directors from September 28, 2026 to October 4, 2026. The search was conducted under the Income Tax Act, 2025, according to Note 6 accompanying the unaudited results for the quarter and half year ended September 30, 2026.

Vashu Bhagnani Industries said the Department seized certain electronic records, including information held electronically and on computer systems. The filing does not quantify the records seized, identify individual offices or directors involved, or state any allegation. It instead records the dates of the activity and the categories of material taken during the seven-day period.

Has Vashu Bhagnani Industries received a tax demand or notice?

Vashu Bhagnani Industries said it had received no order, demand, show-cause notice or other communication related to the search as at November 14, 2026. That date is also when the board approved the unaudited standalone and consolidated results for the three and six months ended September 30, 2026, following Audit Committee review.

Vashu Bhagnani Industries said it provided the Department with requested cooperation, documents and details, and had informed stock exchanges primarily on October 4, 2026 and further on October 12, 2026. The absence of a communication as of the reporting date describes the company’s reported status at that point; the filing says the company will continue monitoring developments and take appropriate actions.

Did Vashu Bhagnani Industries change its financial results after the search?

Vashu Bhagnani Industries said it had not identified a need to adjust either current-period or prior-period financial results after considering information and facts available as of November 14, 2026. This is an accounting assessment disclosed alongside results prepared under Indian Accounting Standard 34, Interim Financial Reporting, and is not presented as a conclusion to the tax process.

The company’s standalone profit after tax for the quarter ended September 30, 2026 was Rs 8.98 lakh, compared with Rs 18.64 lakh in the preceding quarter ended June 30, 2026 and Rs 8.94 lakh a year earlier. For the half year ended September 30, 2026, standalone profit after tax was Rs 27.62 lakh, up from Rs 11.67 lakh in the corresponding half year of 2025, without any search-related adjustment identified in the filing.

Vashu Bhagnani Industries reported that the financial statements were subject to limited review, with auditors issuing an unmodified report. The September-quarter standalone profit before tax of Rs 19.72 lakh was Rs 1.28 lakh below the June-quarter figure of Rs 21 lakh, even as total revenue rose by Rs 16.91 lakh quarter on quarter.

What affected Vashu Bhagnani Industries' September-quarter results?

Vashu Bhagnani Industries reported standalone total revenue of Rs 68.24 lakh for the quarter ended September 30, 2026, compared with Rs 15.33 lakh in the year-earlier quarter. Other income contributed Rs 48.45 lakh, while revenue from operations was Rs 19.79 lakh, showing that other income represented the larger portion of reported quarterly revenue.

The company said Rs 47.97 lakh of September-quarter other income came from writing back long-standing trade payables that were no longer payable. That write-back was close to the reported Rs 48.45 lakh of standalone other income, while revenue from operations increased from Rs 13.78 lakh in the quarter ended September 30, 2025 to Rs 19.79 lakh in the latest quarter.

Vashu Bhagnani Industries identified Films Distribution/Production as its only primary reportable segment under Indian Accounting Standard 108, Operating Segments. It therefore provided no separate segment information, meaning the filing does not split the Rs 19.79 lakh quarterly operating revenue or Rs 47.97 lakh payable write-back between film distribution and film production activities.

What other balance-sheet and operational matters did Vashu Bhagnani Industries report?

Vashu Bhagnani Industries said a loan to its wholly owned subsidiary, Modern Productions FZ LLC, UAE, was fully repaid on July 23, 2026. In the standalone balance sheet, investments were Rs 69.0639 crore at September 30, 2026, compared with Rs 64.4354 crore at March 31, 2026, while total standalone assets rose to Rs 155.5456 crore from Rs 151.6582 crore.

Standalone cash and cash equivalents stood at Rs 8.389 crore at September 30, 2026, versus Rs 6.3553 crore at March 31, 2026. The half-year cash-flow statement showed net cash inflow from operating activities of Rs 3.6315 crore for the half year ended September 30, 2026, compared with an operating cash outflow in the corresponding 2025 period.

The company also said its reporting-date employee headcount was below 10, the threshold referenced under Section 53 of the Code on Social Security, 2020 for gratuity obligations. The Code was implemented nationwide on November 21, 2025; management said it would initiate an actuarial valuation under Indian Accounting Standard 19 if headcount reaches 10 and would then recognise the liability.

Conclusion

The filing places the search disclosure alongside results in which standalone half-year profit after tax increased to Rs 27.62 lakh from Rs 11.67 lakh a year earlier, while September-quarter revenue was shaped mainly by Rs 48.45 lakh of other income. Of that other income, Rs 47.97 lakh came from the reversal of long-standing trade payables that were no longer payable.

The next disclosed matter to watch is any communication from the Income Tax Department after November 14, 2026, as Vashu Bhagnani Industries said it would monitor developments and take appropriate actions. Management also said it would obtain an actuarial valuation and recognise gratuity liability if employee headcount reaches 10.