Valiant Laboratories Limited has disclosed receiving a significant Show-Cause Notice from tax authorities, demanding approximately ₹12.53 crores in Goods and Services Tax (GST) along with applicable interest and penalties. The pharmaceutical company made this disclosure under Regulation 30 of SEBI Listing Regulations on January 15, 2026.

Notice Details and Timeline

The Show-Cause Notice, dated January 14, 2026, was received via email on Wednesday at 15:52 IST from the Office of the Commissioner of CGST & Central Excise (Audit), Raigad, Vashi, Navi Mumbai. The notice was issued under the CGST Act, 2017 and SGST Act, 2017, addressing multiple alleged tax compliance issues.

Key Allegations and Financial Impact

The tax demand encompasses three primary areas of concern, each with substantial financial implications:

Specific Compliance Issues

IPO-Related Tax Credit Dispute

The authorities have challenged the Input Tax Credit claimed on expenses incurred for the Initial Public Offer. The department contends that IPO expenses are attributable to "transaction in securities," which qualifies as an exempt supply. Consequently, the ITC claimed on these expenses, approximately ₹2.85 crores, is deemed ineligible as it was exclusively used for exempted goods supply.

Turnover Discrepancy in Transition Period

The notice addresses a turnover mismatch in FY 2021-22, involving approximately ₹9.31 crores in short payment of GST. This discrepancy arose from differences between the taxable turnover declared in Financial Statements and GSTR-3B returns during the transition period when partnership firm 'Bharat Chemicals' was converted into 'Valiant Laboratories Ltd'.

Corporate Guarantee Tax Liability

The third issue concerns non-payment of GST on a ₹100 crore Corporate Bank Guarantee provided to related party M/s. Valiant Advanced Services Pvt Ltd. The department has valued this service at 2% per annum and demanded GST on it, amounting to approximately ₹36 lakhs.

Regulatory Compliance and Next Steps

The company has fulfilled its disclosure obligations under Regulation 30 read with Clause 8 of Para B of Part A of Schedule III of the Listing Regulations. The intimation has been uploaded on the company's website at www.valiantlabs.in and communicated to both BSE Limited and National Stock Exchange of India Limited. The notice proposes penalties under Sections 50, 74, and 122 of the CGST Act, 2017, in addition to the primary tax demand and applicable interest.

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.