GlaxoSmithKline Pharmaceuticals Limited has informed stock exchanges about receiving a GST demand order from Madhya Pradesh authorities under Regulation 30 of SEBI's Listing Obligations and Disclosure Requirements Regulations, 2015. The pharmaceutical company received the order on 21st February 2026 and disclosed the matter to BSE and NSE on 23rd February 2026.

GST Demand Details

The Deputy Commissioner of CGST & Central Excise, Division-III, Indore issued the order dated 21st January 2026, disallowing certain GST credits in Madhya Pradesh State. The demand order covers multiple financial years and involves significant amounts related to input tax credit issues.

Nature of Violations

The GST authorities have raised the demand for financial years 2019-20, 2020-21, 2021-22, and 2022-23 on account of input tax credit related issues. The order specifically addresses contraventions related to GST credit claims that the authorities have deemed inadmissible under the applicable regulations.

Company's Response and Impact

GlaxoSmithKline Pharmaceuticals has stated that there is no impact on the financial operations of the company. The management is currently evaluating the demand order and will take appropriate actions in due course. The company received the order on Saturday, 21st February 2026, and filed the disclosure on Monday, 23rd February 2026, adhering to regulatory compliance requirements.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of SEBI's Listing Obligations and Disclosure Requirements Regulations, 2015, which mandates listed entities to inform stock exchanges about material events that could impact the company's operations or financial position. The company has provided all relevant details as required under the regulatory framework, including the nature of violations, quantum of demand, and potential impact assessment.

GlaxoSmithKline Pharmaceuticals Limited delivered strong financial performance in Q3 FY26, with revenue crossing the ₹1000 crore milestone and reaching ₹102259 lakhs (₹1022.59 crores), representing an 8.1% growth. The pharmaceutical major demonstrated robust profitability with Profit After Tax of ₹27718 lakhs (₹277.18 crores) and significant margin expansion.

Official Financial Results Declaration

The company announced its Q3 FY26 quarterly results for the third quarter ended 31st December 2025 under Regulation 33 of SEBI LODR Regulations. The Board of Directors approved the unaudited standalone and consolidated financial results at their meeting held on 9th February 2026, which commenced at 1:30 PM and concluded at 3:15 PM.

Advertisement Publication Under Regulation 47

Pursuant to Regulation 47 of SEBI LODR Regulations, GlaxoSmithKline Pharmaceuticals published advertisements in leading newspapers including Economic Times, Business Standard and Maharashtra Times on 10th February 2026. The advertisements related to the publication of financial results for the third quarter and nine months ended December 2025.

Standalone Financial Performance Highlights

The company's standalone financial metrics showed impressive improvement across key parameters during the third quarter:

The company demonstrated strong operational efficiency with total expenses of ₹67652 lakhs against total income of ₹105441 lakhs, resulting in a healthy profit margin.

Consolidated Financial Performance

On a consolidated basis, the company reported even stronger performance including its subsidiary Biddle Sawyer Limited:

The consolidated results benefited from exceptional items credit of ₹1798 lakhs, which included ₹264 lakhs from profit on sale of surplus residential properties and ₹1798 lakhs from sale of non-operational land site.

Labour Code Impact and Regulatory Changes

The implementation of New Labour Codes resulted in a one-off impact of ₹1182 lakhs during the quarter. The Government of India notified four Labour Codes on November 21, 2025, consolidating 29 existing labour laws. The incremental impact primarily arises due to change in wage definition, with the company continuing to monitor finalisation of Central and State Rules.

Nine Months Performance Overview

For the nine months ended 31st December 2025, the company showed consistent growth trajectory:

Auditor Review and Compliance

The financial results were reviewed by Deloitte Haskins & Sells LLP, with Partner Rajiv Shah signing off on both standalone and consolidated results. The statutory auditors carried out a limited review of the financial results in accordance with Standard on Review Engagements (SRE) 2410, confirming compliance with Indian Accounting Standards and SEBI regulations.