Plastiblends India’s record is disclosed and consistently audited without qualification. Three things sit on the ledger: a large, static income-tax demand and a wave of GST notices that mostly subsided, two isolated employee-fraud events alongside a recurring audit-trail gap, and weak cumulative cash conversion that sits oddly with a steady dividend.
Key findings
- Contingent liabilities are dominated by a static ₹104.9 crore income-tax demand
Minor- Income-tax demands not acknowledged as debts stood at ₹104.90 crore as of 31 March 2026, unchanged from the prior year. In FY2024-25, the company received a flurry of GST show-cause notices proposing over ₹30 crore in fresh demands, but proceedings for several of the largest were dropped by authorities between January and February 2025, and an Appellate Authority set aside a ₹9.12 crore demand on 17 October 2025. GST demands not acknowledged as debts closed at ₹10.44 crore on 31 March 2026, also unchanged. - Operating cash flow conversion is weak and volatile, while dividends and capex continue
Minor- Cumulative cash from operations of ₹352 crore covered only 0.67 times cumulative EBITDA of ₹523 crore over the ten years through FY2026. In FY26, operating cash flow of ₹21.33 crore covered 0.58 times profit after tax of ₹36.69 crore; in FY25, the cover was just 0.26 times. The Board recommended a dividend of ₹3.00 per share for FY26, and strategic capital expenditure of ₹24.33 crore was incurred during the year for plant expansion and other infrastructure. - The secretarial auditor has repeatedly flagged late IEPF transfers and late exchange filings
Minor- The Secretarial Audit Report for FY2025-26 noted that shares for unclaimed dividend of FY2017-18 were transferred to the IEPF on 4 November 2025, beyond prescribed timelines, and the required public notice was also published late on 10 July 2025. Earlier, the FY2022-23 report flagged a late IEPF transfer and a late filing of the Secretarial Compliance Report that drew a penalty of ₹2,360 from BSE. A penalty of ₹2,360 each from BSE and NSE was incurred for a similar filing delay in FY2024-25.
What to watch
- Employee misappropriation investigation. The police investigation into the suspected misappropriation of funds reported in the FY2026 audit is ongoing as of the annual report date.
- Audit trail gap. The audit trail feature at the database level was not enabled for FY2026; the FY2027 audit will show whether it has been addressed.
- Remaining GST notices. Two show-cause notices from August 2024 proposing demands of ₹6.20 crore and ₹14.36 crore in ITC matters remain unresolved.
- Income-tax demand. Income-tax demands of ₹104.90 crore remain pending as of 31 March 2026.
- Promoter MD re-appointment. Shareholders vote on 24 August 2026 on the re-appointment of Shri Varun S. Kabra as Vice-Chairman & MD for five years from 1 August 2026.
Bottom line: This is a straightforward, promoter-run manufacturing business with a clean audit trail of opinions and no material regulatory orders. The record is marked by procedural friction, late filings, an audit-trail gap, and two contained employee-fraud events, rather than structural distress. The real question is earnings quality: cash conversion has been thin for a decade, and the dividend is paid more from the balance sheet than from operating cash flow in the latest years. Watch whether the police investigation surfaces anything beyond the employee already named, and whether the audit-trail gap closes in FY2027.