Indrayani Biotech Limited has submitted a detailed response to the Income Tax Department in Chennai, addressing recovery letters for outstanding tax demands related to Assessment Years 2011-12 through 2013-14. The filing, made under Regulation 30 of SEBI (LODR) Regulations, seeks to halt recovery actions based on pending legal remedies and prior appellate rulings.

Details of tax demands and legal status

The company disclosed specific details regarding the demands raised by the Income Tax Officer, Corp. Ward 2(3), Chennai. The total outstanding demand amounts to ₹1.16 crore, split across two distinct sets of assessment years with different legal grounds.

For Assessment Year 2013-14, the demand of ₹98,09,000 originated from a Rectification Order under Section 154 dated February 23, 2017. However, the Income Tax Appellate Tribunal (ITAT) set aside this order on November 2, 2020, and remanded the matter for fresh consideration. Consequently, the company argued that the demand does not survive and requested its deletion from the list of outstanding dues.

Regarding Assessment Years 2011-12 and 2012-13, a combined demand of ₹18,45,520 was quantified under Section 144 read with Section 254 on March 31, 2022. This demand stemmed from the disallowance of excise duty payments. The company filed a First Appeal (Form No. 35) on April 21, 2022, submitting evidence of payments. Since the appeal is currently pending adjudication, Indrayani Biotech has requested that recovery proceedings be kept in abeyance.

Impact on operations and financials

The company stated there is no immediate financial impact on its operations or activities. Management indicated strong legal grounds on merits and confirmed that appropriate statutory remedies are being pursued before the relevant Appellate Authorities. The disclosure was signed by Swaminathan Govindarajan, Whole-time Director, and submitted to BSE Limited on October 21, 2026.

Indrayani Biotech reported a standalone net profit of ₹14.50 lakh for the quarter ended June 30, 2026, marking a 13.5% year-on-year increase compared to ₹12.77 lakh in the corresponding period last year.

The company’s revenue from operations stood at ₹415.34 lakh in Q1FY27, a significant decline of 37.9% from ₹668.57 lakh recorded in Q1FY26. Despite the drop in top-line performance, profitability improved due to lower employee benefit expenses and reduced finance costs relative to the previous year's comparable quarter.

Financial Performance Overview

The board meeting held on October 7, 2026, approved the unaudited standalone and consolidated financial results for the first quarter of FY27. The statutory auditors, Venkatesh & Co, issued an unmodified opinion on the standalone results.

Key financial metrics for the standalone entity are summarized below:

Consolidated Results

On a consolidated basis, Indrayani Biotech posted a net profit of ₹54.00 lakh for Q1FY27, a substantial improvement from the loss of ₹111.19 lakh incurred in the previous quarter (Q4FY26). Compared to Q1FY26, where consolidated profit was ₹15.65 lakh, the current quarter’s profit increased by 245%.

Consolidated revenue from operations rose to ₹3,770.55 lakh in Q1FY27, up 29.6% from ₹2,910.37 lakh in Q1FY26. The group’s total income reached ₹3,929.65 lakh, driven by higher operational revenue and other income contributions.

What the Numbers Show

A divergence exists between standalone and consolidated performance trends. While standalone revenue contracted sharply by 37.9% YoY, consolidated revenue expanded by 29.6%. This suggests that the group’s growth is being driven primarily by its subsidiaries rather than the parent entity. Additionally, the standalone net profit margin improved to 3.5% (from 1.9% in Q1FY26), aided by a significant reduction in employee benefit expenses, which fell from ₹150.15 lakh to ₹100.60 lakh YoY.

Board and Committee Updates

The Board also approved the reconstitution of several committees effective October 7, 2026:

• Audit Committee: Mr. Nangavaram Mahadevan Ranganathan (Chairman), Mr. Swaminathan Govindarajan, and Ms. Bokara Nagarajan Padmaja Priyadarshini.
• Stakeholder Relationship Committee: Same composition as the Audit Committee.
• Rights Issue Committee: Mr. Nangavaram Mahadevan Ranganathan (Chairman), Mr. Swaminathan Govindarajan, and Mr. Kasiraman Sayee Sundar.