Pharmaceuticals firm Divi’s Laboratories Ltd on Saturday (March 21) said it has received a draft assessment order from the Income Tax Authority proposing additions and disallowances of ₹570.51 crore to its returned income for FY2022-23 (assessment year 2023-24), the company said on March 21.
The draft order, issued under Section 144C(1) of the Income Tax Act, 1961, was dated March 20, 2026, and received by the company on March 21, 2026. It was issued by the Assistant Commissioner of Income Tax, Central Circle-2(1), Hyderabad.
The proposed additions relate to transfer pricing adjustments on specified domestic transactions as well as corporate tax adjustments. The company said the upward revision in income could result in an additional income tax liability.
As per the draft order, penalty proceedings under Section 270A of the Income Tax Act, 1961, will be initiated separately for alleged under-reporting of income in respect of the proposed additions. Divi’s Laboratories said it is evaluating the draft order and intends to file an appeal before the appropriate authority within the stipulated time.
Third Quarter Results
The drugmaker reported a net profit of ₹583 crore for the December quarter, down 1% year-on-year from ₹589 crore, and below the CNBC-TV18 poll estimate of ₹640 crore. Revenue for the quarter rose 12.3% year-on-year to ₹2,604 crore, compared with ₹2,319 crore a year earlier, but also missed the Street estimate of ₹2,680 crore.
At the operating level, performance remained resilient, with EBITDA increasing 19.8% year-on-year to ₹890 crore, up from ₹743 crore in the year-ago quarter and above the CNBC-TV18 poll estimate of ₹855 crore. EBITDA margin expanded to 34.2%, compared with 32% a year ago and 32.7% in the September quarter, comfortably ahead of the Street estimate of 31.9%.
Management said operational metrics improved during the quarter despite near-term revenue softness and indicated that growth drivers remain intact. On a sequential basis, revenue declined 4.1% quarter-on-quarter, while profit fell 15.4%, reflecting some moderation in quarterly momentum.
