Noida-based IT systems company HCL Infosystems announced it received a ₹26.35 crore refund from the Rajasthan Value Added Tax (VAT) Authorities. However, this offers little relief to the company navigating serious financial headwinds.
HCL Infosystems is a much smaller, separate listed entity, which should not be confused with HCL Technologies, the large IT services and software company under the Shiv Nadar Group.
According to the Q3 FY26 results, HCL Infosystems earned just ₹7 lakhs in revenue from operations for the quarter. The auditors also flagged a going concern doubt and noted that current liabilities exceed current assets by a substantial ₹479 crore, as per the regulatory filing in February.
The latest refund relates to a pre-deposit, which was essentially an advance payment made by companies contesting tax demands before tax appellate forums.
This dispute goes back to tax periods 2009-10 and 2011-12 regarding the taxability of batteries sold in composite packs along with mobile phones in Rajasthan. The Rajasthan tax authorities had then raised a demand taxing bundled phone-battery packs. HCL Infosystems contested this, depositing the disputed amount upfront as required under the pre-GST VAT law to keep the appeal alive. It is that pre-deposit that was returned in full now that the matter has been resolved in the company's favour.
However, compared to the liabilities deficit (the ₹479 crore mentioned above), this ₹26.35 crore cash inflow could be a meaningful, short-term relief.
Following the news, HCL Infosystems stock inched 2.47 per cent to a morning high of ₹12.45 before easing. Year to date, the stock has fallen almost 8.5 per cent.