Indoco Remedies Faces Potential ₹85 Million Tax Demand

Indoco Remedies Ltd. has received a show cause notice from the Goods and Services Tax (GST) Authority for a potential tax demand of ₹85 million. The pharmaceutical company disclosed this development in a regulatory filing on February 11, 2025, in compliance with SEBI regulations.

This notice comes at a challenging time for Indoco Remedies, as the company has been grappling with declining revenues in its international formulation business. In the first nine months of FY2025, the company reported a 6.8% year-on-year revenue decline, primarily due to a 53.7% contraction in the US market and a 15% decline in the UK market.

The potential tax liability adds to the company's financial pressures, as it has recently undertaken significant debt-funded capital expenditures. As of December 31, 2024, Indoco's total debt had increased to approximately ₹900 crore, up from ₹672 crore on March 31, 2024.

Source: Business Standard, MarketScreener