Divi’s Labs Receives ₹570 Crore Draft Tax Assessment OrderDivi’s Labs Receives ₹570 Crore Draft Tax Assessment Order

Introduction

Leading pharmaceutical manufacturer receives a ₹570.51 crore draft assessment order for FY2022-23, citing transfer pricing and corporate tax disallowances against returned income.

Also Read: ICICI Bank Faces ₹768.6 Crore GST Demand; Says Will Contest 

Through Legal Routes

Share price movement of Divi’s Laboratories

On March 20, 2026, Divi’s Laboratories opened at ₹5,923.75, down -2.93% from its previous close of ₹6,102.25. It reached a high of ₹6,041.60 (-0.99%) and a low of ₹5,923.75. By 4:00 PM, it traded at ₹6,011.07, a -1.49% decrease, with a market cap of ₹1,59,958.09 crore.

Draft Tax Order: Key Details

The draft assessment order under Section 144C(1) of the Income Tax Act, 1961, was issued by the Assistant Commissioner of Income Tax, Central Circle-2(1), Hyderabad, dated March 20, 2026. Divi’s Laboratories received it on March 21, 2026.

The order proposes total additions and disallowances of ₹570.51 crore for Assessment Year 2023-24 (FY2022-23). These relate to transfer pricing adjustments on specified domestic transactions and disallowances to the company’s returned income under corporate tax provisions.

Separately, the income tax authority intends to initiate penalty proceedings under Section 270A of the Income Tax Act for alleged under-reporting of income. Divi’s Laboratories is currently evaluating the draft order and will file an appeal with the appropriate authority within the mandated timeline.

Stock performance of Divi’s Laboratories  for Period of 1 week, 6 months, and 1 year

Divi’s Laboratories delivered a 1-week return of 0.48%, a 6-month return of 1.94%, and a 1-year return of 5.22%.

Also Read: Natco Pharma shares rise 4% ahead of board meeting to consider demerger plan

Shareholding pattern of Divi’s Laboratories

Particulars	Dec 2025	Sep 2025	Jun 2025
Promoter	51.90%	51.90%	51.90%
FII	20.10%	19.40%	19.70%
DII	19.30%	19.80%	19.10%
Public	8.80%	9.00%	9.30%

About Divi’s Laboratories

Divi’s Laboratories Ltd (NSE: DIVISLAB) is a leading manufacturer and exporter of active pharmaceutical ingredients, intermediates, and nutraceutical ingredients for global pharmaceutical and nutraceutical sectors.

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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.

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