Nephrocare Health Services disclosed that its wholly-owned overseas subsidiary, Nephrocare Health Services Central Asia LLC, received a tax audit order from the Tashkent City Tax Department on August 31, 2026. The order imposes a net additional tax assessment and penalty aggregating to approximately ₹14.79 crore.

The tax authority issued Decision No. 721.1 dated August 24, 2026, following an audit of the period from January 1, 2023 to December 31, 2025. The company stated the demand arose primarily from a discrepancy in revenue data used to determine eligibility for a corporate income tax exemption.

Breakdown of Tax Demand

The Tashkent City Tax Department initially assessed additional taxes of UZS 20,371,068,018 (approximately ₹16.50 crore). After allowing reductions of UZS 6,167,012,658 (approximately ₹4.99 crore), the net additional tax assessment stands at UZS 14,204,055,360 (approximately ₹11.50 crore).

The financial penalty was imposed under Article 224 of the applicable tax law. The aggregate figure excludes applicable late-payment interest under Article 110.

Basis of Dispute

Under Uzbekistan’s tax framework, income from dialysis and related medical services is exempt from corporate income tax if such income constitutes more than 90% of total revenue. NCA operates exclusively in dialysis services, with the Ministry of Health as the primary payor.

The company noted that its audited revenue records show dialysis revenue exceeded the prescribed threshold. However, the revenue figures considered by the Tax Department appear to differ from the payment data provided by the Ministry of Health and NCA’s audited records. The company attributes the assessment to this data-reconciliation discrepancy rather than a failure to meet exemption criteria.

What the Numbers Show

The financial exposure of approximately ₹14.79 crore represents a specific, isolated regulatory risk in a foreign jurisdiction. The company’s preliminary assessment indicates that the core business model—exclusive provision of dialysis services—remains compliant with local tax exemption rules, suggesting the liability stems from administrative data alignment rather than operational non-compliance.

Next Steps

NCA is taking steps to reconcile the underlying revenue data with the tax department. The company is also evaluating legal remedies, including the right to appeal the order. No appeal or legal proceedings have been initiated as of the disclosure date.

The company opined that the order should be set aside or quashed and does not expect a material adverse impact on its financial position, operations, or business. The amounts assessed become effective one month after the order is presented to the taxpayer.

Nephrocare Health Services Limited has uploaded the transcript of its investors' conference call regarding the first quarter of FY27 financial results. The session took place on August 12, 2026, and addressed the unaudited standalone and consolidated performance for the period ended June 30, 2026.

The disclosure was made in compliance with Regulation 30, Regulation 46(2), and other applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Call Details

The transcript is accessible via the company's official website at www.nephroplus.com . This release serves as a continuation of the earlier communication dated July 24, 2026, and August 12, 2026, which contained the written financial statements and notice regarding the discussion.

Kishore Kathri, Company Secretary and Head Legal at Nephrocare, signed the disclosure letter. The document confirms that the recording and transcript are available for public record, ensuring transparency for investors and analysts reviewing the quarterly performance.