Dr Lal Pathlabs wins appeal, secures ₹32.66 crore ESOP deduction

Dr. Lal PathLabs Limited has secured a favourable outcome from the Commissioner of Income Tax (Appeals), which allowed its appeal concerning the disallowance of ESOP expenses. The appellate order, dated July 16, 2026, permits the company to claim a deduction of ₹32,66,18,927 on account of ESOP expenses. This decision reverses the position taken in the assessment order dated March 31, 2024, which had originally been contested by the diagnostic company.

The company received the communication on July 17, 2026. The order was passed under section 250 of the Income Tax Act, 1961, following an appeal filed against the earlier assessment. The resolution of this tax dispute removes a potential financial liability, as the deduction has now been formally recognized by the tax authorities.

Details of the Appellate Order

The disclosure was made to the exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The specific details of the order are outlined below:

Particulars	Details
Name of the authority:	Commissioner of Income Tax (Appeals), Income Tax Department
Nature of order:	Appellate Order under section 250 of the Income Tax Act, 1961
Date of order:	July 16, 2026
Date of receipt:	July 17, 2026
Financial impact:	Deduction of ₹32,66,18,927 on ESOP expenses allowed

Vinay Gujral, Company Secretary & Compliance Officer, confirmed that the appeal was decided in the company's favour. The filing noted that there is no quantifiable adverse impact on the financial or operational activities of the listed entity resulting from this order.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+4.27%	+1.53%	+5.37%	+27.81%	+16.61%	+2.22%

Dr. Lal PathLabs Ltd will host a conference call on July 24, 2026, to discuss its financial and operating performance for the first quarter of FY27. The call is scheduled for 5:30 PM IST and will provide an opportunity for investors and analysts to engage with the company's leadership following the announcement of its quarterly results. The discussion will focus on the company's performance metrics and strategic outlook for the period.

The conference call will be led by key members of the management team, including (Hony) Brig. Dr. Arvind Lal, Executive Chairman; Mr. Shankha Banerjee, Chief Executive Officer; and Mr. Ved Prakash Goel, Group Chief Financial Officer & CEO – International Business. The session will commence with a brief presentation by the management on the financial results, followed by a Q&A session to address participant queries.

Conference Call Details

Parameter	Details
Date & Time	5:30 PM IST on Friday, July 24, 2026
Pre-registration	Participants can register via a provided link to receive dial-in numbers, passcode, and PIN.
Universal Access	+91 22 6280 1141, +91 22 7115 8042
International Access	USA: 18667462133, UK: 08081011573, Singapore: 8001012045, Hong Kong: 800964448

Dr. Lal PathLabs Limited is a leading diagnostic service provider in India, offering a broad range of healthcare tests and services. As of March 31, 2026, the company operated 312 clinical labs, 7,727 Patient Service Centers (PSCs), and 13,935 Pick-up Points (PUPs). In FY26, the company processed approximately 94.5 million samples from 30.3 million patients.