Kopran Limited has reported its third quarter financial results, showing a decline in key profitability metrics compared to the corresponding period last year. The pharmaceutical company's operational performance reflected challenges in maintaining its previous year's profitability levels.

Financial Performance Overview

The company's financial metrics for the third quarter demonstrate a year-over-year decline in both absolute EBITDA and margin performance.

EBITDA Performance Analysis

Kopran's EBITDA for the third quarter reached ₹178.00 million, representing a decrease from the ₹198.00 million recorded in the same quarter of the previous year. This decline of ₹20.00 million indicates operational challenges faced by the company during the reporting period.

Margin Compression

The company experienced significant margin compression during the quarter, with EBITDA margin declining to 9.14% from 11.93% year-over-year. This 279 basis points reduction in margin suggests pressure on the company's operational efficiency and cost management during the third quarter.

The margin compression alongside the absolute EBITDA decline indicates that the company faced challenges in maintaining its profitability levels compared to the previous year's performance in the corresponding quarter.

Kopran Limited has informed stock exchanges about a GST authority search operation initiated at its facilities on January 21, 2026. The Maharashtra State GST authorities conducted the search under Section 67 of the Maharashtra Goods and Services Tax Act, 2017, targeting the company's registered office in Mumbai and manufacturing facilities at Khopoli, Raigad, Maharashtra.

Search Operation Details

The company disclosed the development through a regulatory filing with BSE and NSE, as required under Regulation 30 of SEBI (LODR) Regulations, 2015. The search operation remains ongoing, with Kopran Limited stating it is fully cooperating with authorities by providing all requested data and documentation.

Current Status and Impact

According to the company's disclosure, GST officials have not shared specific details regarding any violations or contraventions allegedly committed by Kopran Limited. The authorities have not communicated the nature of suspected irregularities that prompted the search operation.

The company emphasized that the inspection has not disrupted normal operations at its factories and offices. Additionally, authorities have not notified any financial implications or monetary impact arising from the search proceedings.

Regulatory Compliance

Kopran Limited's disclosure follows the SEBI master circular requirements dated November 11, 2024, which mandates listed entities to inform exchanges about regulatory actions. The company provided comprehensive details as specified in the circular, including:

• Nature and details of actions taken by authorities
• Date of initiation of search operations
• Current status of alleged violations
• Assessment of operational and financial impact

Company Response

The pharmaceutical company has assured stakeholders of its complete cooperation with the ongoing investigation. Company Secretary and Compliance Officer Sunil Sodhani signed the regulatory disclosure, confirming the company's commitment to transparency and regulatory compliance throughout the process.

The search operation represents a significant regulatory development for Kopran Limited, though the company maintains that business operations continue without disruption. The outcome of the GST authorities' investigation remains pending, with no timeline specified for completion of the search proceedings.