Vedanta Iron and Steel Limited (VISL)

Vedanta Iron and Steel Limited's subsidiary, ESL Steel Limited, received a Demand-cum-Show Cause Notice on October 14, 2026, from GST authorities in Rourkela. The notice proposes recovery of ₹2,76,135.61 in IGST related to alleged short payments under the Reverse Charge Mechanism for FY 2022-23. The discrepancy stems from reconciliation differences between GSTR-3B and GSTR-2B filings, along with applicable interest and penalties. Given the negligible quantum relative to quarterly revenues exceeding ₹3,600 crore, the company expects no material operational or financial impact.

• Proposed recovery of IGST amounting to ₹2,76,135.61
• Pertains to alleged short payment under Reverse Charge Mechanism for FY 2022-23
• Triggered by differences between GSTR-3B and GSTR-2B filings
• Notice issued by Superintendent, Central Tax, GST & Central Excise, Lathikata Range, Rourkela

Vedanta Iron and Steel Limited's subsidiary, ESL Steel Limited, received a Demand-cum-Show Cause Notice from the GST authority in Rourkela on October 14, 2026. The department has proposed recovery of ₹7,77,094 (CGST ₹3,88,547 and SGST ₹3,88,547) for alleged short payment under Reverse Charge Mechanism on DMF and NMET contributions for FY 2022-23. The demand includes applicable interest and penalty. Given VISL's quarterly revenue base of ₹3,662 crore in Q1 FY27 (June 2026), the financial impact is negligible.

• Subsidiary ESL Steel received a GST Demand-cum-Show Cause Notice amounting to ₹7,77,094
• Demand comprises CGST of ₹3,88,547 and SGST of ₹3,88,547 plus interest and penalty
• Notice pertains to alleged short payment under RCM on DMF and NMET contributions for FY 2022-23
• Company accessed the notice on October 14, 2026, and confirmed no material financial or operational impact

Vedanta Iron and Steel Limited reported its Q2 FY27 production volumes following its May 2026 demerger from Vedanta. Steel saleable production grew 4% YoY to 532,000 tonnes, while hot metal production rose 3% YoY to 552,000 tonnes, despite being down 9% and 8% QoQ respectively due to scheduled furnace maintenance. Iron ore saleable production dropped 13% YoY and 43% QoQ to 1.52 Mn DMT, primarily due to a 49% YoY reduction in Karnataka volumes, partially offset by a 34% YoY increase in Odisha ore production.

• Total steel saleable production reached 532,000 tonnes in Q2 FY27, up 4% YoY but down 9% QoQ due to planned maintenance
• Iron ore saleable production fell 13% YoY and 43% QoQ to 1.52 Mn DMT, impacted by lower Karnataka output (-49% YoY)
• Odisha iron ore production rose 34% YoY to 0.91 Mn DMT, while Goa operations grew 22% YoY to 0.10 Mn DMT
• Ductile iron pipes output surged 225% YoY to 22,000 tonnes in Q2 FY27
• H1 FY27 steel saleable production stood at 1,114,000 tonnes, up 4% YoY

Vedanta Iron and Steel Limited's subsidiary, ESL Steel Limited (ESL), received an adjudication order dated August 28, 2026, regarding non-compliance under Section 197(15) of the Companies Act, 2013. The violations pertained to disclosure of managerial remuneration during FY 2015-16 to FY 2017-18 under erstwhile management. ESL has been fully exempted from any financial penalty under Section 32A of the Insolvency and Bankruptcy Code (IBC). Penalties, if any, will be remitted by erstwhile Directors and KMPs, concluding the proceedings with zero financial impact on the company.

• Adjudication order received on September 30, 2026, concludes proceedings for FY 2015-16 to FY 2017-18.
• Subsidiary ESL Steel Limited is completely exempted from penalty under Section 32A of the IBC.
• Matter pertains to non-disclosure of director-to-median employee remuneration ratios by erstwhile management.
• Ex-Directors and Ex-KMPs have accepted individual penalties and undertaken to remit them directly.

Vedanta Iron and Steel Limited announced that its shareholders have approved all 9 proposed resolutions via postal ballot with the requisite majority on September 30, 2026. The approved measures include the appointment of M/s S.R. Batliboi & Co. LLP as Statutory Auditors, alongside the implementation and funding of the ESOP 2026 and ESPP 2026 schemes through a trust structure. Resolutions 10 through 16, initially included in the notice dated August 31, 2026, were previously withdrawn via a corrigendum on September 21, 2026.

• Appointment of M/s S.R. Batliboi & Co. LLP as Statutory Auditors passed with 99.95% votes in favour
• Approval of ESOP 2026 implementation via Trust passed with 96.10% total votes in favour
• ESPP 2026 secondary acquisition and company funding resolutions (Nos. 8 & 9) passed with 99.43% approval each
• Total voting participation reached 69.56% of total voting capital (271.99 cr votes polled)
• Resolutions 10 to 16 were withdrawn by the Board on September 21, 2026, and excluded from voting

Vedanta Iron and Steel Limited (VISL) issued clarifications responding to recommendations from proxy advisory firm IiAS regarding its Postal Ballot Notice. The company emphasized that the VISL ESOP 2026 scheme is 100% performance-linked with a minimum vesting period of 3 years and a grant value capped at 100% of an employee's annual fixed pay. It justified extending the scheme to holding company and subsidiary employees based on direct operational linkages and noted that costs would be cross-charged. Additionally, VISL stated that options will be serviced via secondary market trust acquisitions to prevent incremental equity dilution, while clarifying its equity face value is Re. 1 per share, not Rs. 2 as reported by IiAS.

• Vesting under VISL ESOP 2026 is 100% performance-linked with zero time-based or guaranteed vesting
• Options are subject to a minimum vesting period of 3 years within a maximum window of 5 years
• Grant value per employee is capped at 100% of annual fixed pay, with vesting at threshold set at 50% and capped at 100%
• Shares to service the scheme will be acquired via secondary market purchases through a Trust to avoid equity dilution
• Company clarified the face value of each equity share is Re. 1 per share, refuting IiAS's stated Rs. 2

Vedanta Iron and Steel Limited (VISL) received an order on September 1, 2026, from the Regional Provident Fund Commissioner, Goa, levying a surcharge of Rs 28,46,261. The order pertains to alleged deviations from notified investment patterns during FY 2022-23 and FY 2023-24 under Section 125 of the Code on Social Security 2020 read with Section 7A of the EPF Act. VISL stated that it has a strong case on merits and is preparing to challenge the order before an appropriate forum. The financial liability is negligible compared to the company's quarterly revenue of Rs 3,662 crore.

• Surcharge of Rs 28,46,261 imposed by Regional Provident Fund Commissioner, Goa
• Pertains to alleged deviations in investment patterns for FY 2022-23 and FY 2023-24
• Order received on September 01, 2026
• Company exploring legal remedies to challenge the order on merits

Vedanta Iron and Steel Limited (VISL) has issued a postal ballot notice seeking shareholder approval for 16 resolutions. Key proposals include the appointment of M/s S.R. Batliboi & Co. LLP as statutory auditors, implementation of ESOP 2026 and ESPP 2026 via a Trust structure (including secondary market share acquisition), and approval for material related-party transactions (RPTs) for VISL and its key subsidiaries. E-voting opens on September 1, 2026, and closes on September 30, 2026, with the cut-off date set as August 28, 2026.

• Remote e-voting window runs from September 1, 2026, to September 30, 2026, with an August 28, 2026 cut-off date.
• Proposes appointment of M/s S.R. Batliboi & Co. LLP, Chartered Accountants, as Statutory Auditors.
• Seeks shareholder approval for 'VISL ESOP 2026' and 'VISL ESPP 2026' schemes funded via Trust for secondary share purchases.
• Notes FY2026 consolidated revenue of ₹13,339 crore to provide scale context for operational related-party transactions.

Vedanta Iron and Steel Limited announced that its subsidiary, ESL Steel Limited, received a Demand-cum-Show Cause Notice from the Principal Commissioner, CGST & Central Excise, Ranchi. The notice proposes a tax recovery of ₹39.58 crore covering FY 2020-21 to FY 2022-23, along with applicable interest and penalty, alleging wrongful availment and utilization of Input Tax Credit (ITC) regarding credit notes. The demand comprises ₹29.17 crore IGST, ₹3.26 crore CGST, ₹3.26 crore SGST, and ₹3.89 crore Cess. The company stated that it is evaluating legal remedies and does not anticipate any material operational or financial impact.

• Total proposed recovery: ₹39,58,32,544 (~₹39.58 crore) plus applicable interest and penalties
• Tax breakdown: IGST ₹29.17 crore, CGST ₹3.26 crore, SGST ₹3.26 crore, and Cess ₹3.89 crore
• Relevant period: FY 2020-21 to FY 2022-23 regarding alleged wrongful ITC availment on credit notes
• Notice issued on August 27, 2026, following a previous Form GST DRC-01A intimation dated August 13, 2026

Vedanta Iron and Steel Limited has scheduled an investor interaction at the Ashwamedh-Elara India Dialogue 2026 in Mumbai on September 01, 2026, between 9:00 AM and 4:00 PM. The interaction will involve in-person one-on-one and group meetings with institutional investors. The company stated that the latest investor presentation is available on its website. No price-sensitive transaction or corporate restructuring was disclosed in this routine filing.

• Investor conference scheduled for September 01, 2026, from 9:00 AM to 4:00 PM
• Participating in Ashwamedh-Elara India Dialogue 2026 in Mumbai
• Format includes in-person, one-on-one, and group meetings
• Latest investor presentation hosted on the company website

M/s. Lodha & Co LLP has tendered its resignation as Statutory Auditors of ESL Steel Limited, a material subsidiary of Vedanta Iron and Steel Limited (VISL), effective August 26, 2026. The auditor's tenure was originally scheduled to expire on March 31, 2027. The resignation is procedural, intended to align subsidiary auditing with VISL's Group Auditor Framework following the demerger from Vedanta Limited. The outgoing auditor confirmed that there are no other material reasons or concerns regarding the resignation.

• Resignation of Lodha & Co LLP as ESL Steel Limited statutory auditor effective August 26, 2026
• Original auditor term was scheduled to expire on March 31, 2027 after appointment on August 26, 2022
• Latest audit report submitted by the auditor was for March 31, 2026 (issued on April 18, 2026)
• Change executed to align the material subsidiary with the Group Auditor Framework of holding company VISL

Vedanta Iron and Steel Limited's (VISL) subsidiary, ESL Steel Limited, received an Adjudication Order dated August 25, 2026, from ROC Ranchi regarding managerial remuneration disclosure lapses for FY 2015-16 to FY 2017-18. Pursuant to Section 32A of the IBC 2016, ESL has been fully exempted from any penalty as the matter relates to erstwhile management. Former directors have accepted their individual penalties, fully concluding the adjudication proceedings with zero financial liability on VISL.

• Adjudication order dated August 25, 2026, received from ROC Ranchi concluding the proceedings.
• ESL Steel exempted from monetary penalty under Section 32A of IBC 2016.
• Non-compliance pertained to managerial remuneration disclosures for FY 2015-16 to FY 2017-18.
• Ex-directors accepted the individual penalties as directed by the Adjudicating Officer.

Vedanta Iron and Steel Limited's subsidiary, ESL Steel Limited (ESL), received an adjudication order dated August 25, 2026, from the ROC Ranchi regarding alleged non-disclosures under Section 197(15) of the Companies Act, 2013 for FY 2015-16 to FY 2017-18. The non-compliance relates to the erstwhile management prior to the IBC acquisition. Pursuant to Section 32A of the IBC 2016, ESL has been exempted from any penalty, fully concluding the adjudication proceedings. The ex-directors have undertaken to remit any individual penalties directed by the Adjudicating Officer.

• Adjudication order PO/ADJ/08-2026/RN/02768 issued by ROC Ranchi on August 25, 2026.
• ESL exempted from financial penalty under Section 32A of IBC 2016.
• Dispute pertained to erstwhile management's remuneration disclosures across FY 2015-16 to FY 2017-18.
• Individual penalties, if any, will be borne directly by the ex-directors.

ESL Steel Limited, a subsidiary of Vedanta Iron and Steel Limited (VISL), has received a GST intimation (Form DRC-01A) from the Principal Commissioner of CGST & Central Excise, Ranchi. The department has proposed a tax liability of ₹39.58 crore for the period FY 2020-21 to FY 2022-23. The allegation pertains to the short reversal of Input Tax Credit (ITC) related to credit notes. The company is currently evaluating legal remedies and maintains that there will be no significant financial or operational impact.

• Proposed tax liability of ₹39,58,32,544 (~₹39.58 cr) including IGST, CGST, SGST, and Cess.
• The intimation covers a three-year period from FY 2020-21 to FY 2022-23.
• The largest component of the demand is IGST, amounting to ₹29,16,89,049.
• The liability represents approximately 1.08% of the company's Jun 2026 quarterly revenue of ₹3,662 cr.
• The demand is equivalent to roughly 32.7% of the company's Jun 2026 quarterly PAT of ₹121 cr.