Panacea Biotec Limited has received an income tax demand order of ₹45.71 crore for Assessment Year 2015-16, the company disclosed in a regulatory filing on March 02, 2026. The demand order was issued by the Office of the Deputy Commissioner of Income Tax, Central Circle 29, Delhi, under Section 156 of the Income Tax Act, 1961.

Demand Order Details

The company received the demand order dated February 27, 2026, on March 01, 2026. The demand aggregates to approximately ₹45.71 crore, including interest, arising from additions made in the Assessment Order for Assessment Year 2015-16.

Nature of Violations

The income tax demand stems from disallowances made under Section 37 of the Income Tax Act by the Assessing Officer. The violations relate to incorrect categorisation of certain expenses which are allegedly in violation of Medical Council of India regulations. These deductions were disallowed, resulting in the substantial tax demand.

Company's Response and Assessment

Panacea Biotec has assessed the demand as non-maintainable, stating that it is misplaced as it fails to account for the company's revised tax filings. The company maintains that its revised filings reflect no taxable income or tax liability due to the availability of brought-forward losses.

The company plans to take comprehensive legal recourse to challenge the demand:

• Filing a rectification application
• Submitting an appeal before the relevant appellate authority
• Pursuing all necessary legal remedies

Financial Impact Assessment

According to the company's disclosure, Panacea Biotec does not envisage any significant impact on its financial, operational, or other activities. The company's confidence stems from its position that the demand is based on incorrect assessment of its tax position, particularly regarding the availability of brought-forward losses that would offset any potential tax liability.

The disclosure was made pursuant to Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, ensuring transparency with stakeholders regarding material developments that could affect the company's operations.

Panacea Biotec Limited has published its unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, demonstrating contrasting performance across its business segments. The pharmaceutical company's results were approved by the Board of Directors on February 11, 2026, and published in compliance with SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Quarterly Financial Performance

The company's Q3 FY26 results revealed significant differences between standalone and consolidated operations. On a standalone basis, Panacea Biotec faced operational challenges, while its consolidated performance showed resilience.

Nine Months Performance Analysis

For the nine months ended December 31, 2025, the performance gap between standalone and consolidated operations remained evident. The consolidated business demonstrated better operational efficiency and profitability metrics.

Year-over-Year Comparison

Comparing with the corresponding periods of the previous year, the company showed mixed trends across different operational parameters:

Standalone Operations:

• Q3 FY26 revenue of ₹9,931 lakh compared to Q3 FY25 revenue of ₹10,843 lakh
• Nine months FY26 revenue of ₹30,237 lakh versus nine months FY25 revenue of ₹24,195 lakh

Consolidated Operations:

• Q3 FY26 revenue of ₹16,519 lakh compared to Q3 FY25 revenue of ₹16,349 lakh
• Nine months FY26 revenue of ₹47,302 lakh versus nine months FY25 revenue of ₹42,656 lakh

Corporate Governance and Compliance

The financial results underwent proper review procedures as mandated by regulatory requirements. The Audit Committee reviewed the results, and the Board of Directors approved them during their meeting held on February 11, 2026. The company's statutory auditors also reviewed the quarterly results.

The results were published in Business Standard (English) and Desh Sewak (Punjabi) newspapers on February 12, 2026, ensuring compliance with Regulation 47 of SEBI regulations. The detailed financial results are available on stock exchange websites NSE ( www.nseindia.com ) and BSE ( www.bseindia.com ), as well as on the company's official website.

Financial Structure

The company maintained consistent equity share capital of ₹613 lakh with a face value of ₹1 per share across all reporting periods. The financial results were prepared in accordance with Indian Accounting Standards (Ind-AS) as prescribed under Section 133 of the Companies Act, 2013.