Valiant Laboratories Limited has received a final order from the Assistant Commissioner of CGST & Central Excise, Division-IV, Navi Mumbai Commissionerate, confirming a tax demand and penalty totaling ₹62.97 lakh for alleged wrong availment of Input Tax Credit (ITC) on capital goods.

GST Order Details

The order dated December 26, 2025, confirms a demand for wrong availment of Input Tax Credit on capital goods for the financial year 2021-22. The company had claimed depreciation on the GST component of capital goods, which has been held to be impermissible by the tax authorities.

Regulatory Violations Alleged

The GST authorities have identified violations under multiple sections of the CGST Act, 2017. The disallowance pertains to ITC on capital goods due to non-fulfillment of conditions and claim of depreciation on tax component, allegedly violating Sections 16(2), 17(5), 73, 50 and 122(2)(a) of the CGST Act, 2017, along with applicable provisions of the IGST and MGST Acts.

Company's Response Strategy

Valiant Laboratories has stated that it is evaluating all available options, including filing an appeal against the order before the appropriate authority. The company is assessing the course of action to challenge the GST order and present its case to higher tax authorities.

Compliance and Disclosure

In adherence to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the pharmaceutical company has promptly informed the stock exchanges about this development. The intimation has also been uploaded on the company's website at www.valiantlabs.in , ensuring transparent communication with all stakeholders.

Financial Impact Assessment

The confirmed liability of ₹62.97 lakh represents a reduction from the earlier proposed amount of ₹70.81 lakh mentioned in the show-cause notice. While this remains a significant financial obligation for the small-cap pharmaceutical company, the final outcome will depend on the success of any appeal proceedings the company may initiate.

Valiant Laboratories Limited, a chemical manufacturing company, has reported a profit for the second quarter, while also addressing a recent fine imposed by stock exchanges for delayed disclosure of a committee meeting.

Financial Performance

For the quarter ended September 30, Valiant Laboratories reported a consolidated net profit of ₹20.01 crore. The company's total income for the quarter stood at ₹470.68 crore, with revenue from operations at ₹462.02 crore.

Key financial highlights for Q2 (consolidated):

The company's board of directors reviewed and approved these results in their meeting held on November 11.

Stock Exchange Fine

Valiant Laboratories also addressed a fine imposed by BSE Limited and National Stock Exchange for non-compliance with listing regulations. The company was penalized for delayed prior intimation of a Rights Issue Committee Meeting held on July 15.

Key points regarding the fine:

• Both stock exchanges imposed fines of ₹2,11,800 each (inclusive of GST)
• The company paid the fines on August 20, within prescribed timelines
• The Board stated that the non-compliance was not deliberate and resulted from practical challenges in scheduling the committee meeting
• The Rights Issue Committee meeting was scheduled promptly after receiving in-principle approvals from stock exchanges (NSE approval on July 11, and BSE approval on July 14)

The company's board considers the matter fully complied with and closed.

Rights Issue Details

The Rights Issue Committee was authorized to determine key terms including:

• Issue price
• Record date
• Entitlement ratio

These decisions were made in the committee meeting that led to the delayed disclosure.

Management Commentary

Santosh Shantilal Vora, Managing Director of Valiant Laboratories, stated, "While we regret the delay in disclosure that led to the fine, we are pleased with our financial performance this quarter. Our focus remains on maintaining transparency and compliance while driving growth in our chemical manufacturing business."

Valiant Laboratories continues to operate as a single-segment company engaged in the manufacturing of chemicals. The company's financial results will be available on its website ( www.valiantlab.in ) and on the websites of BSE Limited and NSE.

As the chemical sector navigates through various market challenges, Valiant Laboratories' performance in the coming quarters will be closely watched by investors and industry analysts alike.