Websol Energy System shares rally 14% after Rs 73 crore tax bombshell is defused

Shares of Websol Energy System surged as much as 14.1% to Rs 97.55 on the BSE on Wednesday after it won a major tax appeal, wiping out a Rs 73.04 crore demand that had been hanging over its books like a cloud.

The rally came after Websol Energy System disclosed that the Commissioner of Income Tax (Appeals), Kolkata, had ruled in its favour in a long-running dispute for the assessment year 2017–18. The original assessment order had made additions of Rs 184.99 crore under Section 115JB of the Income-tax Act and disallowed expenses of Rs 1.51 crore under normal provisions.

Those additions had translated into a tax demand of Rs 73.04 crore, which the company had treated as a contingent liability. With the appellate authority now setting aside the demand, that amount will no longer be payable, effectively removing a large overhang from the company’s balance sheet and giving shareholders clearer visibility on its financial position.


The announcement triggered immediate buying interest in the stock, pushing it sharply higher during Wednesday’s session even as the broader context around the company remains challenging.

Stock still deep in the red for 2025

Websol Energy System’s shares are still down 46% so far in 2025, reflecting how much ground the stock has lost over the year. From a technical standpoint, the picture remains mixed to weak.

The stock is trading below six of its eight key simple moving averages, including the 20-day, 30-day, 50-day, 100-day, 150-day and 200-day SMAs, while staying above its 5-day and 10-day SMAs. The Relative Strength Index stands at 30.5, a level close to the oversold zone, while the Moving Average Convergence Divergence is at -8.5 and remains below both the centre and signal lines, reinforcing a bearish indicator.

Websol Energy System Limited is a renewable energy company operating in the solar energy space, with a focus on photovoltaic products and related solar power solutions for domestic and international markets.

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