Torrent Pharma Hit with ₹41.34 Cr Tax Penalty: Appeal Looms

Penalty Details

Torrent Pharmaceuticals Ltd, a leading player in cardiovascular and CNS therapeutics, received a substantial penalty of ₹413.4 million imposed by the tax department. This follows similar recent notices, including a ₹2.32 crore income tax penalty under Section 271(1)(c) for tax adjustments and smaller GST fines, highlighting ongoing regulatory scrutiny in pharma taxation.​

Company Response

Torrent maintains the penalty lacks merit and will pursue appeals at higher forums, consistent with its handling of prior demands like NPPA overcharging notices totaling ₹6-60 lakh. With Q2 FY26 net profit at ₹453 crore on ₹2,889 crore revenue, the firm views it as immaterial to operations or finances.​

Key Highlights:

Penalty Amount: ₹413.4 million (₹41.34 crore) from tax authorities.​

Basis: Alleged tax adjustments or excess claims; akin to recent ₹2.32 Cr income tax order.​

Action Plan: Immediate appeal expected; no material impact anticipated.​

Financial Context: Robust Q2 growth (17% profit rise); shares rallied post prior disclosures.​

Sources: Business Standard, Medical Dialogues, Moneycontrol, Economic Times​