Sandu Pharmaceuticals Receives GST Detention Order, Pays ₹31,699 Penalty; Proceedings Dropped

1 min read     Updated on 07 May 2026, 06:23 PM
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Sandu Pharmaceuticals received a GST detention order from the Office of Assistant Commissioner, Jurisdiction Sector 3 (Mobile Squad-1) Shamli, Uttar Pradesh, on 07/05/2026, citing a discrepancy between invoice quantity and physically verified quantity of goods. The company accepted the liability and paid a penalty of ₹31,699 on 06/05/2026. The GST authority subsequently dropped the proceedings, and the company has confirmed there is no major impact on its financial or operational activities.

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Sandu Pharmaceuticals has disclosed the receipt of a detention order from the Office of Assistant Commissioner, Jurisdiction Sector 3 (Mobile Squad-1) Shamli, Uttar Pradesh, under the provisions of Regulation 30 read with sub-para 20 of Para A of Part A of Schedule III of the Listing Regulations. The order, received on 07/05/2026, pertains to a discrepancy between the quantity of goods as per invoice and the quantity established during physical verification of the goods.

GST Detention Order: Key Details

The detention order was issued under Section 129(1) of the State Goods and Services Tax Act, 2017/Union Territory Goods and Services Tax Act, 2017 and the Central Goods and Services Tax Act, 2017, as well as under Section 20 of the Integrated Goods and Services Tax Act, 2017. The following table summarises the key details of the regulatory action:

Parameter: Details
Issuing Authority: Office of Assistant Commissioner, Jurisdiction Sector 3 (Mobile Squad-1) Shamli, Uttar Pradesh
Nature of Order: Order of Detention under Section 129(1) of SGST/UTGST Act, 2017 & CGST Act, 2017; Section 20 of IGST Act, 2017
Date of Receipt: 07/05/2026
Reason: Discrepancy in quantity as per invoice vs. quantity as per physical verification of goods
Penalty Paid: ₹31,699
Date of Penalty Payment: 06/05/2026
Status of Proceedings: Dropped by GST authority

Company Response and Financial Impact

Based on its own assessment, Sandu Pharmaceuticals accepted the liability and paid the penalty amounting to ₹31,699 on 06/05/2026. Following the payment, the GST authority dropped the proceedings against the company. The company has stated that there is no major impact on its financial, operational, or other activities as a result of this order.

The disclosure was made by Pratika Mhambray, Company Secretary and Compliance Officer, on behalf of Sandu Pharmaceuticals, and communicated to BSE Limited on 07/05/2026.

Historical Stock Returns for Sandu Pharmaceuticals

1 Day5 Days1 Month6 Months1 Year5 Years
-3.24%-6.62%-6.34%+4.30%-21.62%+2.39%

Could this GST detention incident trigger increased scrutiny from tax authorities on Sandu Pharmaceuticals' future shipments, potentially disrupting its supply chain operations?

What systemic changes might Sandu Pharmaceuticals implement in its invoicing and inventory management processes to prevent similar quantity discrepancies in the future?

How might repeated GST compliance issues, even minor ones, affect Sandu Pharmaceuticals' GST compliance rating and its ability to claim input tax credits going forward?

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Sandu Pharmaceuticals Reports FY26 Net Profit of Rs. 176.61 Lakhs; Recommends Dividend

4 min read     Updated on 07 May 2026, 01:57 PM
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Sandu Pharmaceuticals Limited reported a net profit of Rs. 176.61 lakhs for FY26, an increase from Rs. 154.89 lakhs in the previous year, with revenue from operations rising to Rs. 6993.45 lakhs. The Board recommended a final dividend of Rs. 1 per share and reappointed statutory and cost auditors for FY 2026-27.

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Sandu Pharmaceuticals Limited approved its standalone audited financial results for the quarter and year ended 31st March 2026 at a Board of Directors meeting held on 5th May 2026. The results, reviewed by the Audit Committee and approved by the Board, were prepared in accordance with Indian Accounting Standards (Ind AS) under Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company operates in a single business segment — Ayurvedic Proprietary Medicines — as evaluated by management. The company has also submitted the newspaper publication for these audited financial results to the Bombay Stock Exchange, confirming the publication in “Navprabha” and “Navhind Times” dated 7th May 2026.

Full-Year Financial Performance

Sandu Pharmaceuticals posted a net profit of Rs. 176.61 lakhs for the year ended 31st March 2026, compared to Rs. 154.89 lakhs in the year ended 31st March 2025, reflecting year-on-year growth. Revenue from operations rose to Rs. 6993.45 lakhs from Rs. 6719.24 lakhs in the prior year. Total income for FY26 stood at Rs. 7037.89 lakhs against Rs. 6735.99 lakhs in FY25. Profit before tax for the full year came in at Rs. 265.54 lakhs, up from Rs. 215.58 lakhs in the previous year. Total comprehensive income for the year was Rs. 242.95 lakhs compared to Rs. 219.47 lakhs in FY25.

Metric: Year ended 31st March 2026 Year ended 31st March 2025
Revenue from Operations: Rs. 6993.45 lakhs Rs. 6719.24 lakhs
Total Income: Rs. 7037.89 lakhs Rs. 6735.99 lakhs
Total Expenses: Rs. 6772.35 lakhs Rs. 6520.41 lakhs
Profit Before Tax: Rs. 265.54 lakhs Rs. 215.58 lakhs
Net Profit: Rs. 176.61 lakhs Rs. 154.89 lakhs
Total Comprehensive Income: Rs. 242.95 lakhs Rs. 219.47 lakhs
Basic EPS (Rs.): 1.83 1.60
Diluted EPS (Rs.): 1.83 1.60

Quarterly Financial Highlights

For the quarter ended 31st March 2026, the company reported revenue from operations of Rs. 1685.34 lakhs, compared to Rs. 1406.92 lakhs in the corresponding quarter of the previous year. Net profit for Q4 FY26 stood at Rs. 4.34 lakhs, against Rs. 32.64 lakhs in Q4 FY25. Profit before tax for the quarter was Rs. 74.71 lakhs versus Rs. 34.24 lakhs in the same period last year. Total comprehensive income for the quarter was Rs. 70.68 lakhs compared to Rs. 42.48 lakhs in the corresponding quarter.

Metric: Q4 FY26 (31st March 2026) Q3 FY26 (31st December 2025) Q4 FY25 (31st March 2025)
Revenue from Operations: Rs. 1685.34 lakhs Rs. 1876.09 lakhs Rs. 1406.92 lakhs
Total Income: Rs. 1721.85 lakhs Rs. 1877.46 lakhs Rs. 1413.85 lakhs
Profit Before Tax: Rs. 74.71 lakhs Rs. 85.50 lakhs Rs. 34.24 lakhs
Net Profit: Rs. 4.34 lakhs Rs. 97.51 lakhs Rs. 32.64 lakhs
Total Comprehensive Income: Rs. 70.68 lakhs Rs. 114.47 lakhs Rs. 42.48 lakhs

Balance Sheet and Cash Flow Position

As at 31st March 2026, total assets stood at Rs. 5586.93 lakhs compared to Rs. 5571.87 lakhs as at 31st March 2025. Equity share capital remained unchanged at Rs. 966.10 lakhs, while other equity increased to Rs. 3401.23 lakhs from Rs. 3235.62 lakhs. Cash and cash equivalents at the end of the year rose significantly to Rs. 590.77 lakhs from Rs. 130.39 lakhs at the beginning of the year. Net cash flow from operating activities for FY26 was Rs. 611.58 lakhs, compared to Rs. 95.04 lakhs in FY25. The company reported zero outstanding borrowings as at 31st March 2026.

Dividend Recommendation and Auditor Appointments

Pursuant to Regulation 30 and other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board recommended a final dividend of Rs. 1 per equity share (i.e., 10% on paid-up share capital) having a face value of Rs. 10/- each for the financial year ended 31st March 2026, subject to shareholder approval at the ensuing Annual General Meeting. The date of the AGM, the record date for determining eligible members, and the dividend payout date will be intimated in due course. The statutory auditors, M/s Dileep and Prithvi, Chartered Accountants (Firm No. 122290W), issued an unmodified audit opinion on the standalone financial results for the quarter and year ended 31st March 2026.

Key Corporate Decisions at Board Meeting

The Board also took several other decisions at its meeting held on 5th May 2026:

  • Cost Auditor Reappointment: M/s Shekhar Joshi & Co (Registration No. 100448), Cost Accountants, were reappointed as Cost Auditor of the company for the financial year 2026-27.
  • Internal Auditor – Goa Plant: M/s Akhil Pai & Co was reappointed as Internal Auditor for Goa Plant Operations for FY 2026-27.
  • Internal Auditor – Mumbai: M/s Uday & Uday Associates, Chartered Accountants, was reappointed as Internal Auditor for Mumbai operations for FY 2026-27.
  • Statement of Utilizations and Deviations: The Board took note of the Statement of Utilizations and Deviations as per Regulation 32 of SEBI (LODR) Regulations 2015 for the quarter ended 31st March 2026.
  • Large Corporate Disclosure: The company confirmed it does not qualify as a Large Corporate under the applicable SEBI framework, and accordingly, the Annual Disclosure under Annexure B2 is not required.

Historical Stock Returns for Sandu Pharmaceuticals

1 Day5 Days1 Month6 Months1 Year5 Years
-3.24%-6.62%-6.34%+4.30%-21.62%+2.39%
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1 Year Returns:-21.62%