Announced Wed, 20 May · 17:35 IST

Announcement pertaining to incremental impact considered for new labour codes in financials of the company.

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AI summary

Voith Paper Fabrics India has completed a detailed impact assessment of the new labour codes (consolidating 29 existing labour laws into four codes notified on 21st November 2025). The company recorded an additional gratuity provision of Rs 14.54 million as an exceptional item for the quarter ended March 31, 2026. This follows an earlier preliminary assessment in February 2026 that had recognized Rs 36.43 million in gratuity provision for Q3 FY25. The total additional provision across both quarters amounts to approximately Rs 50.97 million. The company will continue monitoring further rule notifications from central/state governments.

Likely market impact

This represents a one-time accounting charge from regulatory changes that will reduce profitability in Q4 FY26. While non-cash in nature, it signals increased compliance costs under India's new labour framework.