Synopsis: Shares of Panacea Biotec rose after the company received major tax relief from the Income Tax Appellate Tribunal (ITAT), which cancelled a Rs 329.49 crore tax demand related to multiple assessment years. The ruling removes a significant financial overhang and reduces contingent liabilities for the biotechnology company.
Shares in Panacea Biotec showed a marginal gain in Thursday’s trading session as the company achieved a major regulatory milestone in its ongoing tax dispute. Panacea Biotec is a biotechnology company that received a favourable ruling from the Income Tax Appellate Tribunal (ITAT), which cleared tax assessments against the company for prior financial years.
With a market cap of Rs 2,147 crore, the shares of Panacea Biotec Ltd gained about 2.2% in today’s trading session and reached a high of Rs 362.55. When compared to its previous day’s closing price of Rs 354.70, they have given a return of more than 80% in the last 5 years.
About the tax relief
Shares of Panacea Biotec are expected to remain in focus after a favourable order from the Income Tax Appellate Tribunal (ITAT), New Delhi, in connection with a tax dispute. The order is in relation to appeals filed in FY2015-16 between the company and the Deputy Commissioner of Income Tax (DCIT) for several assessment years.
Tribunal ruling clears major tax dues
The tribunal has cleared eight appeals filed earlier by the tax department against orders of the Commissioner of Income Tax (Appeals). The tribunal has also allowed two appeals filed by Panacea Biotec. The ITAT has also quashed the assessment orders issued by the assessing officer for the assessment years ranging from 2005-06 to 2012-13.
As a result of this ruling, all disallowances of expenses for these assessments are cleared. The ruling also clears a tax demand of ₹329.49 crore, which was raised by the assessing officer against the company.
The favourable judgement for Panacea Biotec reduces contingent liabilities and potential penalties for the company. The clearing of tax dues is a big boost for the company’s finances and clears a major overhang for the company in terms of historical tax disputes.
Financials
The revenue from operations for the company stood at Rs 165.2 crore in Q3 FY26 compared to the Q3 FY25 revenue of Rs 163.5 crore, up by about 1 per cent YoY; the net profit stood at Rs 3.9 crore in Q3 FY26, down compared to the Rs 4.44 crore profit in Q3 FY25.
Panacea Biotec is an innovation-driven biotechnology company that specialises in research and development, manufacturing, marketing, and distribution of pharmaceuticals and vaccines. Founded in 1984 as Panacea Drugs Private Limited, it later got listed on Indian stock exchanges in 1995.
It has globally accredited manufacturing facilities, including a USFDA-approved pharmaceutical manufacturing facility at Baddi and WHO pre-qualified vaccine manufacturing facilities at Lalru and Baddi, allowing it to supply its products to international markets.
Panacea Biotec has developed a wide range of diversified pharmaceutical products that encompass various therapeutic areas such as pain management, diabetes, cardiovascular diseases, oncology, renal disorders, osteoporosis, and gastrointestinal care. Panacea Biotec is also one of the largest vaccine manufacturers in India and has collaborated with various health agencies of the United Nations to support the Global Polio Eradication Initiative.
It has supplied over billions of doses of WHO prequalified polio vaccines to over 50 countries across the world. It has developed innovative vaccines like EasyFive and EasySix and is currently engaged in developing next-generation vaccines like dengue and pneumococcal vaccines.
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