Krsnaa Diagnostics receives ₹62.69 Cr tax appellate orders

scanx
Reviewed by
Shriram SScanX News Team
Key Highlights
  • Krsnaa Diagnostics received CIT(A) orders for AY 2017-18 to 2023-24 with an aggregate disputed demand of ₹62.69 crore
  • The largest demand is for AY 2022-23 at ₹19.63 crore, though a rectification order revised the payable to ₹31.73 crore
  • Appeals were partly allowed for AY 2021-22, 2022-23, and 2023-24, while earlier years saw dismissals
  • The company plans to appeal to the ITAT, citing adequate legal grounds and expecting substantial relief
  • Management stated the proceedings have no impact on ongoing operations
powered bylight_fuzz_icon
50521541

*this image is generated using AI for illustrative purposes only.

Krsnaa Diagnostics has received income tax appellate orders from the Commissioner of Income Tax (Appeals), Pune, covering Assessment Years 2017-18 through 2023-24. The aggregate disputed demand across these orders amounts to ₹62.69 crore. The company intends to file further appeals before the Income Tax Appellate Tribunal (ITAT).

The orders, issued under Section 250 of the Income-tax Act, 1961, represent the outcome at the first appellate level. Krsnaa Diagnostics stated that the underlying tax demands remain disputed and that it possesses adequate factual and legal grounds to substantiate its position before the ITAT. The company expects substantial relief in these proceedings based on advice from external tax experts.

Disputed Demand Breakdown

The appellate orders cover seven assessment years, with outcomes ranging from dismissal to partial allowance of appeals. The disputed demands as reflected in the Commissioner of Income Tax (Appeals) [CIT(A)] orders are detailed below.

Assessment Year Date of Order Disputed Demand (₹) Outcome
2017-18 September 8, 2026 2,08,24,611 Appeal dismissed
2018-19 September 8, 2026 4,03,75,969 Appeal dismissed
2019-20 September 8, 2026 7,26,78,730 Appeal dismissed
2020-21 September 8, 2026 8,69,02,910 Appeal dismissed
2021-22 September 8, 2026 14,20,42,704 Appeal partly allowed
2022-23 August 28, 2026 19,63,30,624* Appeal partly allowed
2023-24 September 8, 2026 6,77,61,887 Appeal partly allowed

Note: For AY 2022-23, the amount reflects the CIT(A) order dated August 28, 2026. A separate rectification order dated August 14, 2026, determined a revised balance payable of ₹31,73,28,734.

What the Numbers Show

The largest single-year disputed demand arises from AY 2022-23 at ₹19.63 crore, representing approximately 31% of the total aggregate disputed demand of ₹62.69 crore. This concentration highlights the significance of the recent assessment year in the overall litigation exposure. Additionally, four out of the seven assessment years resulted in the appeal being partly allowed, indicating some success at this appellate stage despite the continued dispute over the final amounts.

Operational Impact and Next Steps

Krsnaa Diagnostics confirmed that these matters do not impact its ongoing operations. The financial and accounting implications will be assessed and accounted for in accordance with applicable accounting standards. The company plans to file necessary appeals within prescribed timelines and will keep stock exchanges and shareholders informed of material developments.

This disclosure follows a previous intimation bearing reference no. KDL/SE/036/2026-27 dated August 26, 2026, regarding these ongoing income-tax proceedings.

Historical Stock Returns for Krsnaa Diagnostics

1 Day5 Days1 Month6 Months1 Year5 Years
+2.71%+0.18%+0.02%-8.12%-32.30%-38.07%

How might the potential outflow of ₹62.69 crore impact Krsnaa Diagnostics' free cash flow and future capital expenditure plans if the ITAT appeals are unsuccessful?

What specific legal precedents or factual arguments is Krsnaa Diagnostics relying on to challenge the dismissal of appeals for the 2017-18 to 2020-21 assessment years?

Could the prolonged litigation over these tax demands affect the company's credit rating or borrowing costs from financial institutions?

Krsnaa Diagnostics files FY26 BRSR report detailing ESG metrics

scanx
Reviewed by
Shriram SScanX News Team
Key Highlights
  • Krsnaa Diagnostics filed its FY26 BRSR report on September 5, 2026
  • Total energy consumption rose to 42,999 GJ from 41,362 GJ in FY25
  • Water withdrawal increased to 63,245 kilolitres, up from 37,727 kilolitres
  • Related party sales grew to 8.47% of total turnover, up from 6.13%
  • Employee well-being spending fell to 0.35% of revenue from 0.47%
powered bylight_fuzz_icon
50169051

*this image is generated using AI for illustrative purposes only.

Krsnaa Diagnostics has submitted its Business Responsibility and Sustainability Report (BRSR) for the financial year ended March 31, 2026, to the Bombay Stock Exchange and National Stock Exchange. The filing, dated September 5, 2026, discloses the company's environmental, social, and governance performance across its standalone operations.

The report highlights that the company operates 337 laboratories and 6,277 patient collection centers across 18 states. It details total revenue from operations of ₹6,909.47 crore and a net worth of ₹9,919.11 crore as per the CSR disclosures within the document.

Operational Footprint

As of March 31, 2026, Krsnaa Diagnostics maintained a workforce of 6,040 employees, comprising 3,296 permanent and 2,744 non-permanent staff. The gender distribution shows 53.16% male and 46.85% female employees among permanent staff. The company reported a turnover rate of 30.53% for permanent employees in FY26, up from 29.15% in FY25.

Environmental Metrics

The company reported a total energy consumption of 42,999 GJ in FY26, an increase from 41,362 GJ in the previous year. Non-renewable sources accounted for 42,767 GJ of this consumption. Greenhouse gas emissions (Scope 1 and Scope 2) totaled 261.35 tCO2e, compared to 182.65 tCO2e in FY25.

Metric FY26 FY25
Total Energy Consumption (GJ) 42,999 41,362
Total GHG Emissions (tCO2e) 261.35 182.65
Water Withdrawal (Kilolitres) 63,245 37,727
Total Waste Generated (Tonnes) 92.5 109.63

Water withdrawal increased significantly to 63,245 kilolitres from 37,727 kilolitres in FY25, sourced entirely from third-party suppliers. Total waste generated decreased to 92.5 tonnes, primarily driven by a sharp reduction in battery waste from 20.00 tonnes in FY25 to 2.37 tonnes in FY26. Biomedical waste remained stable at 87.68 tonnes.

Social Governance

The company spent ₹23.92 crore on employee well-being measures, representing 0.35% of total revenue, down from 0.47% in FY25. It reported zero fatalities and zero lost-time injuries during the year. The board includes one female director, constituting 33.33% of the total board strength.

What the Numbers Show

Related party sales accounted for 8.47% of total turnover in FY26, rising from 6.13% in FY25. This indicates a growing concentration of revenue within the group structure, with related party sales reaching ₹585.18 crore against a total turnover of ₹6,909.47 crore.

Historical Stock Returns for Krsnaa Diagnostics

1 Day5 Days1 Month6 Months1 Year5 Years
+2.71%+0.18%+0.02%-8.12%-32.30%-38.07%

How might the 43% year-over-year increase in greenhouse gas emissions impact Krsnaa Diagnostics' ESG ratings and investor appeal in a tightening regulatory environment?

What specific strategies is management implementing to address the rising employee turnover rate of 30.53% amidst expansion across 18 states?

Could the significant jump in water withdrawal (67% YoY) signal supply chain vulnerabilities or increased operational costs due to reliance on third-party suppliers?

More News on Krsnaa Diagnostics

1 Year Returns:-32.30%